Company Overview
IDACORP, Inc. engages in the generation, transmission, distribution, purchase, and sale of electric energy across the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon, alongside three natural gas-fired plants. It operates within the Utilities sector, specifically the Regulated Electric industry, which involves providing essential power services to consumers and businesses under regulatory oversight. With a market capitalization of $7.71B, annual revenue of $1.81B, and an employee count of 2174, the firm represents a significant mid-to-large-cap utility entity. These valuation and revenue figures indicate a substantial operational footprint and a stable presence in the regulated electric market, reflecting the capital-intensive nature of its infrastructure assets.
Financial Health
The company reported revenue of $1.81B and net income of $323.47M, while EBITDA reached $606.39M. The gap between the $1.81B revenue and $323.47M net income reveals a substantial cost structure involving operations, maintenance, and regulatory compliance expenses typical of utility firms. However, the company recorded free cash flow of $-738,809,472, which indicates a period of negative cash generation, likely due to significant capital expenditures required for grid maintenance or expansion. Despite the negative free cash flow, the firm holds $215.72M in cash against total debt of $3.67B, resulting in a debt-to-equity ratio of 102.56. This high leverage ratio suggests a highly leveraged balance sheet reliant on fixed-cost debt financing common in regulated utilities. The current ratio stands at 0.93, indicating that current assets are insufficient to cover current liabilities, which points to potential short-term liquidity pressure. Management effectiveness is further highlighted by a return on equity of 9.4% and a return on assets of 2.2%, where the lower ROA relative to ROE underscores the heavy asset base and high leverage used to generate returns.
Valuation Assessment
The trailing twelve-month P/E ratio is 23.81, while the forward P/E is 20.28. The difference between these ratios implies that the market expects earnings to grow faster than current levels, as the forward multiple is lower than the trailing multiple. The price-to-book ratio is 2.16, indicating that the market values the company at more than twice its book value, reflecting a premium for its regulated asset base and stable cash flows. Alternative valuation metrics include a price-to-sales ratio of 4.25 and an EV/EBITDA of 18.42, which suggest the market is willing to pay a premium for earnings power relative to enterprise value. The stock has traded between a 52-week low of $108.15 and a 52-week high of $145.94. Assuming the current trading price is near the forward P/E implied value, the stock sits within its historical range, though precise positioning requires knowing the exact current share price which fluctuates daily. The beta value is 0.55, meaning the stock exhibits significantly lower price volatility than the broader market, making it less sensitive to general economic cycles.
Growth & Income
Revenue growth year-over-year was 1.8%, while earnings growth year-over-year was 11.7%. Earnings are growing at a pace substantially faster than revenue, which implies improved operational efficiency, favorable regulatory settlements, or a mix of higher-margin earnings in the portfolio. As a utility, IDACORP pays a dividend yield of 2.5% with a payout ratio of 58.6%. This payout ratio is generally considered sustainable given the company's profitability, though the negative free cash flow in the current period necessitates careful monitoring of cash availability to fund these distributions. The combination of steady revenue expansion and accelerating earnings growth, supported by a consistent dividend yield, defines the company's profile as a value-oriented income generator.