ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
TSX:AQN - Toronto Stock Exchange - CA0158571053 - Common Stock - Currency: CAD
Taking everything into account, AQN scores 2 out of 10 in our fundamental rating. AQN was compared to 22 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. AQN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AQN was profitable.
AQN had a positive operating cash flow in the past year.
In multiple years AQN reported negative net income over the last 5 years.
In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
AQN has a worse Return On Assets (-8.74%) than 72.73% of its industry peers.
The Return On Equity of AQN (-31.49%) is worse than 72.73% of its industry peers.
AQN has a Return On Invested Capital of 2.77%. This is in the lower half of the industry: AQN underperforms 72.73% 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 3.50%.
The 3 year average ROIC (2.15%) for AQN is below the current ROIC(2.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.74% | ||
| ROE | -31.49% | ||
| ROIC | 2.77% |
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
The Operating Margin of AQN (19.43%) is worse than 72.73% of its industry peers.
In the last couple of years the Operating Margin of AQN has declined.
AQN has a Gross Margin (74.09%) which is in line with its industry peers.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.43% | ||
| PM (TTM) | N/A | ||
| GM | 74.09% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQN is destroying value.
AQN has more shares outstanding than it did 1 year ago.
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 0.23. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.23, AQN is doing worse than 81.82% of the companies in the same industry.
AQN has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
AQN has a Debt to Equity ratio of 1.32. This is amongst the best in the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.23 |
ROIC/WACC0.52
WACC5.33%
2.3 Liquidity
A Current Ratio of 0.76 indicates that AQN may have some problems paying its short term obligations.
AQN's Current ratio of 0.76 is on the low side compared to the rest of the industry. AQN is outperformed by 72.73% of its industry peers.
AQN has a Quick Ratio of 0.76. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
AQN's Quick ratio of 0.64 is on the low side compared to the rest of the industry. AQN is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.85%.
AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.38% yearly.
The Revenue has grown by 13.29% in the past year. This is quite good.
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)-28.85%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-62.5%
Revenue 1Y (TTM)13.29%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-12.31%
3.2 Future
The Earnings Per Share is expected to grow by 2.86% on average over the next years.
Based on estimates for the next years, AQN will show a small growth in Revenue. The Revenue will grow by 0.82% on average per year.
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y2.86%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.82%
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
A Price/Earnings ratio of 14.33 indicates a correct valuation of AQN.
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 28.22, which is the current average of the S&P500 Index.
AQN is valuated rather expensively with a Price/Forward Earnings ratio of 17.89.
The rest of the industry has a similar Price/Forward Earnings ratio as AQN.
AQN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 17.89 |
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 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.01 |
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
With a Yearly Dividend Yield of 4.97%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.20, AQN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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-19.94%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
TSX:AQN (5/1/2025, 7:00:00 PM)
7.31
-0.12 (-1.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap5.61B
Analysts69.23
Price Target5.73 (-21.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
Yearly Dividend0.56
Dividend Growth(5Y)0.06%
DP-19.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.44%
Min EPS beat(2)-25.74%
Max EPS beat(2)-15.13%
EPS beat(4)1
Avg EPS beat(4)-9.65%
Min EPS beat(4)-25.74%
Max EPS beat(4)13.41%
EPS beat(8)2
Avg EPS beat(8)-8.19%
EPS beat(12)4
Avg EPS beat(12)-6.93%
EPS beat(16)5
Avg EPS beat(16)-5.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-4.86%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)-0.08%
Revenue beat(8)3
Avg Revenue beat(8)-2.1%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)10
Avg Revenue beat(16)3.09%
PT rev (1m)-0.49%
PT rev (3m)-2.42%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.41%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.72%
Revenue NY rev (3m)-4.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 17.89 | ||
| P/S | 1.33 | ||
| P/FCF | N/A | ||
| P/OCF | 8.42 | ||
| P/B | 0.86 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)0.51
EY6.98%
EPS(NY)0.41
Fwd EY5.59%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)0.87
OCFY11.88%
SpS5.51
BVpS8.48
TBVpS6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.74% | ||
| ROE | -31.49% | ||
| ROCE | 3.84% | ||
| ROIC | 2.77% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 3.04% | ||
| OM | 19.43% | ||
| PM (TTM) | N/A | ||
| GM | 74.09% | ||
| 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-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 183.02% | ||
| Cap/Sales | 28.54% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 44.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.23 |
F-Score6
WACC5.33%
ROIC/WACC0.52
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)-28.85%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-62.5%
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y2.86%
Revenue 1Y (TTM)13.29%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-12.31%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.82%
EBIT growth 1Y19.34%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year43.04%
EBIT Next 3Y15.62%
EBIT Next 5YN/A
FCF growth 1Y1.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.3%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%