IDACORP, Inc. (IDA) | Investment Case

1. Company Snapshot

1.a. Company Description

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States.The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada.As of December 31, 2021, it had approximately 4,843 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 10 switching stations; 30 mixed-use transmission and distribution substations; 187 energized distribution substations; and 28,570 pole-miles of distribution lines, as well as provides electric utility services to approximately 604,000 retail customers in southern Idaho and eastern Oregon.

The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education.It also invests in housing and other real estate tax credit investments.IDACORP, Inc.

was founded in 1915 and is headquartered in Boise, Idaho.

Show Full description

1.b. Last Insights on IDA

IDACORP's recent performance was driven by strong earnings growth, with Q3 2024 net income increasing to $113.6 million, or $2.12 per diluted share, compared to $105.3 million, or $2.07 per diluted share, in Q3 2023. The company's total operating expenses also increased, but customer growth, rate changes, and favorable weather conditions contributed to higher customer usage. Additionally, IDACORP's five-year capital spending plan remains sufficient to drive solid diluted EPS growth in the future, and the company enjoys a BBB credit rating from S&P on a stable outlook.

1.c. Company Highlights

Last Price	126.09
Change Percentage	-0.30%
Open	128.09
Previous Close	126.47
Market Cap ( Millions)	6815
Volume	272566
Year High	138.03
Year Low	104.74
M A 50	130.68
M A 200	122.26

FCF Yield	-6.01%
Dividend Yield	2.74%
ROE	9.37%
Debt / Equity	105.29%
Net Debt / EBIDTA	466.90%
Price To Book	1.97
Price Earnings Ratio	21.55
Price To FCF	-16.65
Price To sales	3.78
EV / EBITDA	14.24

2. IDACORP's Q3 Earnings Beat Expectations on Robust Customer Growth

IDACORP reported diluted earnings per share (EPS) of $2.26 for the third quarter, surpassing estimates of $2.23. The company's net income increased by $10.8 million compared to the same period last year, driven primarily by higher retail revenues resulting from the January rate change and customer growth. For the first three quarters of 2025, diluted EPS were $5.13, up from $4.82 in the same period of 2024. The company's operating cash flow through September was $464 million, a $6 million increase from the comparative period last year.

Publication Date: Nov -03

                                    📋 Highlights
                                    EPS Growth & Guidance Raised:
                                                Q3 2025 EPS at $2.26 vs. $2.12 YoY; full-year guidance raised to $5.80–$5.90 per diluted share.
Customer Growth & Sector Momentum:
                                                2.3% 12-month trailing customer growth, driven by manufacturing and Micron suppliers in Treasure Valley.
Infrastructure Projects Update:
                                                Progress on Boardman-to-Hemingway transmission; Jackalope Wind project terminated, seeking 90 MW replacement via solar/battery or gas.
Financial Performance:
                                                Net income up $10.8M YoY; operating cash flow $464M, with $1B–$1.1B CapEx expected for 2025.
Regulatory & Rate Case Strategy:
                                                Expected ROE above 9.12% with new loads; rate case timing under review to balance affordability and service obligations.

                                

Customer Growth and Revenue Drivers

The company's customer base grew by 2.3% since the third quarter of last year, with significant growth in manufacturing, which is expected to continue over the next couple of years. According to Adam Richins, the growth is mainly coming from manufacturing, with an expected overall growth rate of around 8.3% per year over the next five years. This growth is a key driver of the company's revenue increase.

Transmission Line Projects and Power Supply Solutions

IDACORP is progressing with several key projects, including the Boardman-to-Hemingway transmission line project. The company has terminated agreements for the 600-megawatt Jackalope Wind project and is exploring alternative power supply solutions, including short-term market purchases, natural gas projects, and additional solar and battery storage resources, to meet future load growth. The effective load carrying capability of the Jackalope project was about 90 megawatts, and the company plans to replace this capacity.

Guidance and Capital Expenditure

IDACORP raised its full-year diluted EPS guidance range to $5.80 to $5.90 per diluted share. The company expects to spend between $1 billion and $1.1 billion on capital expenditures in 2025. Analysts estimate next year's revenue growth at 7.7%. The company's updated guidance assumes normal weather and normal power supply expenses for the rest of the year.

Valuation Metrics

With a P/E Ratio of 22.0 and an ROE of 9.37%, the company's valuation appears to be reasonable. The Dividend Yield is 2.67%, indicating a relatively stable return for investors. However, the Free Cash Flow Yield is -5.88%, suggesting that the company's free cash flow is not currently positive. The EV/EBITDA ratio is 15.96, which may indicate a relatively high valuation compared to EBITDA.

3. NewsRoom

What Makes IdaCorp (IDA) a New Buy Stock

Dec -03

Source: zacks.com

Advisors Asset Management Inc. Acquires 2,178 Shares of IDACORP, Inc. $IDA

Dec -01

Source: defenseworld.net

Teacher Retirement System of Texas Purchases 1,834 Shares of IDACORP, Inc. $IDA

Nov -06

Source: defenseworld.net

IDACORP, Inc. (IDA) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

IDACORP Q3 Earnings Beat Estimates, Revenues Miss, '25 EPS View Raised

Oct -30

Source: zacks.com

IdaCorp (IDA) Surpasses Q3 Earnings Estimates

Oct -30

Source: zacks.com

IDACORP, Inc. Announces Third Quarter 2025 Results, Increases Earnings Guidance Range

Oct -30

Source: businesswire.com

IDACORP, Inc. Declares Dividend

Oct -16

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Utility Operations

Expected Growth: 8.8%

The utility operations segment is likely to grow slightly above the global average due to the steady demand for electricity and the regulated nature of the business, which provides a stable revenue stream. The expected growth rate is slightly higher than the global average, reflecting the essential nature of the business and the likelihood of continued investment in the sector.

All Other

Expected Growth: 8.0%

The 'All Other' segment is expected to grow at a rate slightly below the global average, reflecting the more volatile nature of unregulated businesses and the potential for variability in revenue. The growth rate is still relatively high, reflecting the company's efforts to diversify its revenue streams and adapt to changing market conditions.

7. Detailed Products

Electricity Generation

IDACORP, Inc. generates electricity through its hydroelectric, natural gas, and coal-fired power plants, providing reliable and efficient energy to its customers.

Transmission and Distribution

IDACORP, Inc. owns and operates a vast network of transmission and distribution lines, substations, and other infrastructure to deliver electricity to its customers.

Renewable Energy

IDACORP, Inc. invests in renewable energy sources such as wind, solar, and hydroelectric power to reduce its carbon footprint and provide clean energy to its customers.

Energy Efficiency Programs

IDACORP, Inc. offers energy efficiency programs and incentives to help its customers reduce their energy consumption and lower their energy bills.

Customer Service

IDACORP, Inc. provides customer service and support to its customers, including billing, payment, and outage reporting services.

8. IDACORP, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

IDACORP, Inc. operates in the utility industry, which has a moderate threat of substitutes. While there are alternative energy sources available, they are not yet widely adopted, and the company's services remain essential for many customers.

Bargaining Power Of Customers

IDACORP, Inc.'s customers have limited bargaining power due to the company's monopoly in the utility industry. Customers have limited alternatives, giving the company significant pricing power.

Bargaining Power Of Suppliers

IDACORP, Inc. relies on a few large suppliers for fuel and other essential materials. While the company has some bargaining power, suppliers also have some leverage, leading to a moderate level of bargaining power.

Threat Of New Entrants

The utility industry has significant barriers to entry, including high capital costs and regulatory hurdles. This limits the threat of new entrants and gives IDACORP, Inc. a competitive advantage.

Intensity Of Rivalry

The utility industry is highly competitive, with several large players competing for market share. IDACORP, Inc. faces intense rivalry from other utility companies, which can lead to pricing pressure and competitive pricing strategies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.29%
Debt Cost	4.55%
Equity Weight	50.71%
Equity Cost	6.70%
WACC	5.64%
Leverage	97.18%

11. Quality Control: IDACORP, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Idacor

A-Score: 6.6/10

Value: 4.8

Growth: 5.1

Quality: 5.3

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

CenterPoint Energy

A-Score: 6.4/10

Value: 5.7

Growth: 3.4

Quality: 6.0

Yield: 5.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Ameren

A-Score: 6.4/10

Value: 5.3

Growth: 4.8

Quality: 4.5

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

Alliant Energy

A-Score: 6.1/10

Value: 4.8

Growth: 4.2

Quality: 4.9

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

CMS Energy

A-Score: 5.7/10

Value: 4.1

Growth: 4.1

Quality: 4.2

Yield: 6.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

PNM Resources

A-Score: 4.4/10

Value: 5.4

Growth: 4.2

Quality: 2.6

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

22.43%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.64%

IDACORP, Inc. - US4511071064

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IDA

1.c. Company Highlights

Medium Volatility

Average Growth

Stable Momentum

Earnings Miss

Revenues Beats

Average Yield

Earnings Beats

Average Quality

Fairly Valued

Revenues Miss

Strong Momentum

2. IDACORP's Q3 Earnings Beat Expectations on Robust Customer Growth

Customer Growth and Revenue Drivers

Transmission Line Projects and Power Supply Solutions

Guidance and Capital Expenditure

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Utility Operations

Expected Growth: 8.8%

All Other

Expected Growth: 8.0%

7. Detailed Products

Electricity Generation

Transmission and Distribution

Renewable Energy

Energy Efficiency Programs

Customer Service

8. IDACORP, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: IDACORP, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.09$

Current Price

126.09$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA