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ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis

TSX:AQN - Toronto Stock Exchange - CA0158571053 - Common Stock - Currency: CAD

6.58  +0.07 (+1.08%)

Fundamental Rating

3

Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 21 industry peers in the Multi-Utilities industry. There are concerns on the financial health of AQN while its profitability can be described as average. AQN is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year AQN was profitable.
In the past year AQN had a positive cash flow from operations.
Of the past 5 years AQN 4 years were profitable.
In the past 5 years AQN always reported a positive cash flow from operatings.
AQN.CA Yearly Net Income VS EBIT VS OCF VS FCFAQN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

1.2 Ratios

AQN has a Return On Assets of -6.24%. This is amonst the worse of the industry: AQN underperforms 83.33% of its industry peers.
AQN's Return On Equity of -22.90% is on the low side compared to the rest of the industry. AQN is outperformed by 83.33% of its industry peers.
AQN has a Return On Invested Capital of 2.65%. This is in the better half of the industry: AQN outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AQN is in line with the industry average of 2.92%.
The 3 year average ROIC (2.09%) for AQN is below the current ROIC(2.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -6.24%
ROE -22.9%
ROIC 2.65%
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.09%
ROIC(5y)2.23%
AQN.CA Yearly ROA, ROE, ROICAQN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10

1.3 Margins

In the last couple of years the Profit Margin of AQN has declined.
The Operating Margin of AQN (19.49%) is worse than 83.33% of its industry peers.
AQN's Operating Margin has declined in the last couple of years.
AQN has a Gross Margin (74.55%) which is in line with its industry peers.
In the last couple of years the Gross Margin of AQN has remained more or less at the same level.
Industry RankSector Rank
OM 19.49%
PM (TTM) N/A
GM 74.55%
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
AQN.CA Yearly Profit, Operating, Gross MarginsAQN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQN is destroying value.
The number of shares outstanding for AQN has been increased compared to 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
Compared to 1 year ago, AQN has a worse debt to assets ratio.
AQN.CA Yearly Shares OutstandingAQN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
AQN.CA Yearly Total Debt VS Total AssetsAQN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.24, we must say that AQN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.24, AQN is doing worse than 94.44% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a better Debt to Equity ratio (1.49) than 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.49
Debt/FCF N/A
Altman-Z 0.24
ROIC/WACC0.56
WACC4.72%
AQN.CA Yearly LT Debt VS Equity VS FCFAQN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 0.92 indicates that AQN may have some problems paying its short term obligations.
AQN has a Current ratio of 0.92. This is comparable to the rest of the industry: AQN outperforms 44.44% of its industry peers.
AQN has a Quick Ratio of 0.92. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.77, AQN perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.77
AQN.CA Yearly Current Assets VS Current LiabilitesAQN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

3

3. Growth

3.1 Past

AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.97%.
AQN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.95% yearly.
Looking at the last year, AQN shows a quite strong growth in Revenue. The Revenue has grown by 13.32% in the last year.
Measured over the past years, AQN shows a quite strong growth in Revenue. The Revenue has been growing by 10.35% on average per year.
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%

3.2 Future

AQN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.45% yearly.
The Revenue is expected to decrease by -0.28% on average over the next years.
EPS Next Y-22.74%
EPS Next 2Y-22.56%
EPS Next 3Y-11.12%
EPS Next 5Y-4.45%
Revenue Next Year-4.55%
Revenue Next 2Y-4.88%
Revenue Next 3Y-2.07%
Revenue Next 5Y-0.28%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AQN.CA Yearly Revenue VS EstimatesAQN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
AQN.CA Yearly EPS VS EstimatesAQN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.82, the valuation of AQN can be described as reasonable.
Based on the Price/Earnings ratio, AQN is valued a bit cheaper than 61.11% of the companies in the same industry.
AQN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.39.
A Price/Forward Earnings ratio of 14.73 indicates a correct valuation of AQN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN is on the same level as its industry peers.
AQN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
Industry RankSector Rank
PE 9.82
Fwd PE 14.73
AQN.CA Price Earnings VS Forward Price EarningsAQN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

AQN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AQN is more expensive than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.84
AQN.CA Per share dataAQN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

A cheap valuation may be justified as AQN's earnings are expected to decrease with -11.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.56%
EPS Next 3Y-11.12%

5

5. Dividend

5.1 Amount

AQN has a Yearly Dividend Yield of 5.80%, which is a nice return.
Compared to an average industry Dividend Yield of 5.47, AQN pays a better dividend. On top of this AQN pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.8%

5.2 History

The dividend of AQN has a limited annual growth rate of 4.94%.
AQN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.94%
Div Incr Years0
Div Non Decr Years0
AQN.CA Yearly Dividends per shareAQN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

AQN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.84%
EPS Next 2Y-22.56%
EPS Next 3Y-11.12%
AQN.CA Yearly Income VS Free CF VS DividendAQN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

ALGONQUIN POWER & UTILITIES

TSX:AQN (2/11/2025, 7:00:00 PM)

6.58

+0.07 (+1.08%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)03-07 2025-03-07/amc
Inst Owners62.19%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap5.05B
Analysts68.57
Price Target5.78 (-12.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.8%
Yearly Dividend0.48
Dividend Growth(5Y)4.94%
DP-28.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.86%
Min EPS beat(2)-15.13%
Max EPS beat(2)13.41%
EPS beat(4)2
Avg EPS beat(4)-1.62%
Min EPS beat(4)-15.13%
Max EPS beat(4)13.41%
EPS beat(8)3
Avg EPS beat(8)-3.44%
EPS beat(12)4
Avg EPS beat(12)-5.16%
EPS beat(16)5
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.17%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)10
Avg Revenue beat(16)2.91%
PT rev (1m)-1.45%
PT rev (3m)-6.25%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)-44.56%
EPS NY rev (1m)2.52%
EPS NY rev (3m)-9.6%
Revenue NQ rev (1m)-12.03%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)2.6%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 9.82
Fwd PE 14.73
P/S 1.12
P/FCF N/A
P/OCF 5.56
P/B 0.73
P/tB 1.02
EV/EBITDA 9.84
EPS(TTM)0.67
EY10.18%
EPS(NY)0.45
Fwd EY6.79%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)1.18
OCFY18%
SpS5.86
BVpS9.04
TBVpS6.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.24%
ROE -22.9%
ROCE 3.69%
ROIC 2.65%
ROICexc 2.66%
ROICexgc 2.91%
OM 19.49%
PM (TTM) N/A
GM 74.55%
FCFM N/A
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.09%
ROIC(5y)2.23%
ROICexc(3y)2.1%
ROICexc(5y)2.25%
ROICexgc(3y)2.3%
ROICexgc(5y)2.48%
ROCE(3y)2.91%
ROCE(5y)3.1%
ROICexcg growth 3Y-2.44%
ROICexcg growth 5Y-7.49%
ROICexc growth 3Y-1.59%
ROICexc growth 5Y-6.9%
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
F-Score6
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 1.49
Debt/FCF N/A
Debt/EBITDA 6.49
Cap/Depr 186.56%
Cap/Sales 29.67%
Interest Coverage 1.51
Cash Conversion 57.1%
Profit Quality N/A
Current Ratio 0.92
Quick Ratio 0.77
Altman-Z 0.24
F-Score6
WACC4.72%
ROIC/WACC0.56
Cap/Depr(3y)264.2%
Cap/Depr(5y)249.46%
Cap/Sales(3y)45.42%
Cap/Sales(5y)43.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
EPS Next Y-22.74%
EPS Next 2Y-22.56%
EPS Next 3Y-11.12%
EPS Next 5Y-4.45%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%
Revenue Next Year-4.55%
Revenue Next 2Y-4.88%
Revenue Next 3Y-2.07%
Revenue Next 5Y-0.28%
EBIT growth 1Y21.37%
EBIT growth 3Y9.22%
EBIT growth 5Y5.64%
EBIT Next Year55.11%
EBIT Next 3Y12.57%
EBIT Next 5Y17.41%
FCF growth 1Y55.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.47%
OCF growth 3Y7.52%
OCF growth 5Y3.44%