ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - TSX:AQN - CA0158571053 - Common Stock
8.11 CAD
-0.03 (-0.37%)
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. Both the profitability and financial health of AQN have multiple concerns. AQN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AQN was profitable.
AQN had a positive operating cash flow in the past year.
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
The Return On Assets of AQN (-10.09%) is worse than 80.95% of its industry peers.
With a Return On Equity value of -29.51%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
AQN has a worse Return On Invested Capital (2.73%) than 80.95% of its industry peers.
AQN had an Average Return On Invested Capital over the past 3 years of 2.15%. This is in line with the industry average of 3.65%.
The 3 year average ROIC (2.15%) for AQN is below the current ROIC(2.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROIC | 2.73% |
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 has a Operating Margin of 20.38%. This is amonst the worse of the industry: AQN underperforms 80.95% of its industry peers.
AQN's Operating Margin has declined in the last couple of years.
AQN's Gross Margin of 74.06% is on the low side compared to the rest of the industry. AQN is outperformed by 61.90% of its industry peers.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% |
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 is destroying value.
Compared to 1 year ago, AQN has more shares outstanding
The number of shares outstanding for AQN has been increased compared to 5 years ago.
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.30. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
AQN has a worse Altman-Z score (0.30) than 90.48% of its industry peers.
AQN has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With an excellent Debt to Equity ratio value of 1.29, AQN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.3 |
ROIC/WACC0.46
WACC5.88%
2.3 Liquidity
AQN has a Current Ratio of 1.09. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
AQN has a Current ratio of 1.09. This is comparable to the rest of the industry: AQN outperforms 47.62% of its industry peers.
A Quick Ratio of 0.90 indicates that AQN may have some problems paying its short term obligations.
The Quick ratio of AQN (0.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.00%.
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.
Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -25.45% in the last year.
The Revenue has been growing slightly by 7.38% on average over the past years.
EPS 1Y (TTM)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
3.2 Future
The Earnings Per Share is expected to grow by 4.09% on average over the next years.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.02, which indicates a rather expensive current valuation of AQN.
Based on the Price/Earnings ratio, AQN is valued a bit more expensive than 61.90% of the companies in the same industry.
AQN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.93, AQN is valued correctly.
66.67% of the companies in the same industry are cheaper than AQN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, AQN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQN is valued more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.49, AQN's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than AQN!
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of AQN has a limited annual growth rate of 0.06%.
AQN has been paying a dividend for at least 10 years, so it has 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.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-17.76%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
TSX:AQN (10/10/2025, 7:00:00 PM)
8.11
-0.03 (-0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.23B
Analysts68.33
Price Target6.6 (-18.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend0.57
Dividend Growth(5Y)0.06%
DP-17.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.74%
Min EPS beat(2)-0.69%
Max EPS beat(2)42.17%
EPS beat(4)1
Avg EPS beat(4)0.15%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)0.22%
EPS beat(12)4
Avg EPS beat(12)-3.83%
EPS beat(16)5
Avg EPS beat(16)-3.04%
Revenue beat(2)2
Avg Revenue beat(2)3.06%
Min Revenue beat(2)0.82%
Max Revenue beat(2)5.31%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.11%
Revenue beat(12)7
Avg Revenue beat(12)0.07%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)-2.92%
PT rev (3m)-0.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.46%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 15.93 | ||
| P/S | 1.88 | ||
| P/FCF | N/A | ||
| P/OCF | 10.12 | ||
| P/B | 0.95 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)0.45
EY5.55%
EPS(NY)0.51
Fwd EY6.28%
FCF(TTM)-0.77
FCFYN/A
OCF(TTM)0.8
OCFY9.88%
SpS4.32
BVpS8.5
TBVpS5.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROCE | 3.8% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 3.08% | ||
| OM | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% | ||
| 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-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.71 | ||
| Cap/Depr | 209.43% | ||
| Cap/Sales | 36.33% | ||
| Interest Coverage | 1.25 | ||
| Cash Conversion | 49.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.3 |
F-Score4
WACC5.88%
ROIC/WACC0.46
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)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
EPS Next Y-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
EBIT Next 5YN/A
FCF growth 1Y-33.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.88%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%