Last Updated: 08 Nov 2024
Executive Summary
IDACORP Inc. (IDA) is a leading energy company in the United States, with a focus on electrical generation, transmission, and distribution. The company has a solid financial position, with a market capitalization of $5.92 billion and an EBITDA of $539.92 million. IDACORP's stock is currently trading at $111.22, with a trailing PE ratio of 20.48 and a forward PE ratio of 18.94. The company's strong fundamentals and attractive valuation make it an appealing investment opportunity.
Company Overview
IDACORP, Inc. is headquartered in Boise, Idaho, and serves over 2 million customers in the United States. The company owns and operates a diverse portfolio of generation assets, including hydroelectric, coal-fired, and natural gas-fired power plants. IDACORP also has a significant transmission and distribution network, which spans over 12,000 miles. The company's regulated operations provide a stable source of revenue, while its non-regulated businesses offer growth potential.
Fundamental Analysis
IDACORP's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 3.4% over the past five years. Net income has also grown at a CAGR of 4.1% during the same period. IDACORP's profit margins are healthy, with an operating margin of 25.7% and a net profit margin of 15.3%. The company's balance sheet is also strong, with low levels of debt and ample liquidity.
Technical Analysis
IDACORP's stock has been in a sideways trend over the past year, with a trading range between $84.31 and $112.03. The stock is currently trading near the upper end of this range, and it appears to be forming a bullish pennant pattern. A breakout above the pennant's resistance level could lead to a significant rally in the stock price.
Short Term Outlook
In the short term, IDACORP's stock is expected to continue trading in a sideways trend. The stock is likely to face resistance at the $112.03 level, and it may pull back if it fails to break above this level. However, the stock is also likely to find support at the $103.40 level, which is the 50-day moving average.
Long Term Outlook
In the long term, IDACORP's stock is expected to perform well. The company's solid fundamentals and attractive valuation make it an appealing investment opportunity. The company's regulated operations provide a stable source of revenue, while its non-regulated businesses offer growth potential. IDACORP is also well-positioned to benefit from the growing demand for electricity in the United States.
Analyst Recommendations
Analysts are generally bullish on IDACORP's stock. The consensus analyst rating is "Hold," with a target price of $114.13. Two analysts have a "Strong Buy" rating on the stock, while seven analysts have a "Hold" rating. No analysts have a "Sell" rating on the stock.
