Hey there,
CPX was actually on our Bull List a few years ago and I (Mat) continue to hold CPX. I like the company, and it has been doing quite well operationally in recent years. It has taken a step back in recent months, which in my opinion, has made for an attractive entry point. It is trading at a significant discount to historical averages across board. Now, one must realize that in a high-rate environment, high CAPEX companies and those with high debt loads like Utilities are bound to trade at lower valuations.
That said, I believe CPX's recent downtrend is overdone. It is currently one of the cheapest utilities out there, despite having one fo the best growth rates in recent years and having one of the lowest debt loads among all publicly traded utilities.
One of the reasons why the company may be under pressure is because it release FY 2024 guidance. Adjusted EBITDA came in slightly below expectations and the company now expects to fully complete the Genesee repowering project in the fourth quarter, compared to the bank's prior mid-year assumptions. These are short-term head winds and doesn't take away from the fact it is among the best-capitalized utilities.
I like it and still own it with no intentions of selling.
Mat