ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
TSX:AQN - Toronto Stock Exchange - CA0158571053 - Common Stock - Currency: CAD
Taking everything into account, AQN scores 3 out of 10 in our fundamental rating. AQN was compared to 21 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. AQN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AQN had positive earnings in the past year.
In the past year AQN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AQN reported negative net income in multiple years.
Each year in the past 5 years AQN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -9.49%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
AQN's Return On Equity of -27.63% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
AQN has a better Return On Invested Capital (3.58%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.71%.
The 3 year average ROIC (2.15%) for AQN is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROIC | 3.58% |
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
Looking at the Operating Margin, with a value of 21.00%, AQN is doing worse than 80.95% of the companies in the same industry.
AQN's Operating Margin has declined in the last couple of years.
AQN has a Gross Margin (73.47%) which is comparable to the rest of the industry.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% |
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
AQN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AQN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.38. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
AQN's Altman-Z score of 0.38 is on the low side compared to the rest of the industry. AQN is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a better Debt to Equity ratio (1.28) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.38 |
ROIC/WACC0.62
WACC5.76%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AQN should not have too much problems paying its short term obligations.
AQN has a better Current ratio (1.16) than 90.48% of its industry peers.
A Quick Ratio of 0.97 indicates that AQN may have some problems paying its short term obligations.
AQN has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.49%.
Measured over the past years, AQN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.38% on average per year.
AQN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.38%.
Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
EPS 1Y (TTM)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
3.2 Future
Based on estimates for the next years, AQN will show a small growth in Earnings Per Share. The EPS will grow by 6.99% on average per year.
AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
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
With a Price/Earnings ratio of 15.82, AQN is valued correctly.
AQN's Price/Earnings ratio is in line with the industry average.
AQN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.83 indicates a correct valuation of AQN.
Based on the Price/Forward Earnings ratio, AQN is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AQN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 6.92%, which is a nice return.
AQN's Dividend Yield is a higher than the industry average which is at 6.11.
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
5.2 History
The dividend of AQN has a limited annual growth rate of 0.06%.
AQN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AQN are negative and hence is the payout ratio. AQN will probably not be able to sustain this dividend level.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-20.99%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
TSX:AQN (7/3/2025, 7:00:00 PM)
7.91
+0.12 (+1.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.07B
Analysts67.69
Price Target6.61 (-16.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend0.55
Dividend Growth(5Y)0.06%
DP-20.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.21%
Min EPS beat(2)-25.74%
Max EPS beat(2)42.17%
EPS beat(4)2
Avg EPS beat(4)3.68%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)-2.73%
EPS beat(12)5
Avg EPS beat(12)-3.23%
EPS beat(16)6
Avg EPS beat(16)-2.32%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)5.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)7
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)2.48%
PT rev (1m)15.41%
PT rev (3m)14.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.83 | ||
| P/S | 1.48 | ||
| P/FCF | N/A | ||
| P/OCF | 10.47 | ||
| P/B | 0.95 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 9.86 |
EPS(TTM)0.5
EY6.32%
EPS(NY)0.5
Fwd EY6.32%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)0.76
OCFY9.55%
SpS5.35
BVpS8.34
TBVpS5.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROCE | 4.97% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 4.04% | ||
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% | ||
| FCFM | N/A |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.15%
ROIC(5y)2.11%
ROICexc(3y)2.16%
ROICexc(5y)2.12%
ROICexgc(3y)2.37%
ROICexgc(5y)2.33%
ROCE(3y)2.99%
ROCE(5y)2.93%
ROICexcg growth 3Y4.3%
ROICexcg growth 5Y-5.03%
ROICexc growth 3Y4.14%
ROICexc growth 5Y-4.63%
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%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.61 | ||
| Cap/Depr | 199.46% | ||
| Cap/Sales | 29.3% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 39.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.38 |
F-Score5
WACC5.76%
ROIC/WACC0.62
Cap/Depr(3y)213.94%
Cap/Depr(5y)245.17%
Cap/Sales(3y)39.89%
Cap/Sales(5y)45.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y2.3%
EBIT growth 1Y26.92%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
EBIT Next 5YN/A
FCF growth 1Y-3.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.77%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%