ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN-PR-D - CA0158575013
25.61 CAD
+0.15 (+0.59%)
AQN-PR-D gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 19 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN-PR-D have multiple concerns. AQN-PR-D has a expensive valuation and it also scores bad on growth. Finally AQN-PR-D also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year AQN-PR-D was profitable.
- In the past year AQN-PR-D had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: AQN-PR-D reported negative net income in multiple years.
- Each year in the past 5 years AQN-PR-D had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.27%, AQN-PR-D is doing worse than 89.47% of the companies in the same industry.
- AQN-PR-D's Return On Equity of -0.80% is on the low side compared to the rest of the industry. AQN-PR-D is outperformed by 89.47% of its industry peers.
- AQN-PR-D's Return On Invested Capital of 2.88% is on the low side compared to the rest of the industry. AQN-PR-D is outperformed by 89.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AQN-PR-D is in line with the industry average of 3.73%.
- The last Return On Invested Capital (2.88%) for AQN-PR-D is above the 3 year average (2.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROIC | 2.88% |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.15%
ROIC(5y)2.11%
1.3 Margins
- AQN-PR-D's Operating Margin of 21.55% is on the low side compared to the rest of the industry. AQN-PR-D is outperformed by 89.47% of its industry peers.
- AQN-PR-D's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 73.94%, AQN-PR-D is doing worse than 73.68% of the companies in the same industry.
- AQN-PR-D's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.55% | ||
| PM (TTM) | N/A | ||
| GM | 73.94% |
OM growth 3Y3.93%
OM growth 5Y-3.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.98%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQN-PR-D is destroying value.
- AQN-PR-D has more shares outstanding than it did 1 year ago.
- AQN-PR-D has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AQN-PR-D has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that AQN-PR-D is in the distress zone and has some risk of bankruptcy.
- AQN-PR-D's Altman-Z score of 0.96 is amongst the best of the industry. AQN-PR-D outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 1.33 is on the high side and indicates that AQN-PR-D has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.33, AQN-PR-D belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.42
WACC6.93%
2.3 Liquidity
- AQN-PR-D has a Current Ratio of 1.23. This is a normal value and indicates that AQN-PR-D is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.23, AQN-PR-D is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- A Quick Ratio of 1.03 indicates that AQN-PR-D should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.03, AQN-PR-D is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- The earnings per share for AQN-PR-D have decreased strongly by -29.79% in the last year.
- Measured over the past years, AQN-PR-D shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.38% on average per year.
- Looking at the last year, AQN-PR-D shows a very negative growth in Revenue. The Revenue has decreased by -23.92% in the last year.
- AQN-PR-D shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)-29.79%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
3.2 Future
- AQN-PR-D is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
- AQN-PR-D is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-12.26%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
EPS Next 5Y4.09%
Revenue Next Year-9.53%
Revenue Next 2Y-3.01%
Revenue Next 3Y-0.37%
Revenue Next 5Y2.3%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- AQN-PR-D is valuated quite expensively with a Price/Earnings ratio of 56.91.
- Based on the Price/Earnings ratio, AQN-PR-D is valued more expensive than 89.47% of the companies in the same industry.
- AQN-PR-D's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- AQN-PR-D is valuated quite expensively with a Price/Forward Earnings ratio of 50.77.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN-PR-D indicates a slightly more expensive valuation: AQN-PR-D is more expensive than 78.95% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AQN-PR-D to the average of the S&P500 Index (25.98), we can say AQN-PR-D is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.91 | ||
| Fwd PE | 50.77 |
4.2 Price Multiples
- AQN-PR-D's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AQN-PR-D is more expensive than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
- AQN-PR-D has a Yearly Dividend Yield of 6.58%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.19, AQN-PR-D pays a better dividend. On top of this AQN-PR-D pays more dividend than 84.21% of the companies listed in the same industry.
- AQN-PR-D's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
- The dividend of AQN-PR-D has a limited annual growth rate of 0.06%.
- AQN-PR-D has been paying a dividend for at least 10 years, so it has a reliable track record.
- AQN-PR-D has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.06%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
- The earnings of AQN-PR-D are negative and hence is the payout ratio. AQN-PR-D will probably not be able to sustain this dividend level.
- AQN-PR-D's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP / AQN-PR-D.CA FAQ
Can you provide the ChartMill fundamental rating for ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP?
ChartMill assigns a fundamental rating of 3 / 10 to AQN-PR-D.CA.
Can you provide the valuation status for ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP?
ChartMill assigns a valuation rating of 0 / 10 to ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA). This can be considered as Overvalued.
Can you provide the profitability details for ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP?
ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA) has a profitability rating of 3 / 10.
How financially healthy is ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP?
The financial health rating of ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA) is 3 / 10.
What is the expected EPS growth for ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA) stock?
The Earnings per Share (EPS) of ALGONQUIN PWR & UTILITY - AQNCN 6.853 PERP (AQN-PR-D.CA) is expected to decline by -12.26% in the next year.