ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
TSX:AQN - CA0158571053 - Common Stock
7.84 CAD
+0.06 (+0.77%)
We assign a fundamental rating of 3 out of 10 to AQN. 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
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.
AQN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQN's Return On Assets of -10.09% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
Looking at the Return On Equity, with a value of -29.51%, AQN is doing worse than 80.95% of the companies in the same industry.
AQN has a Return On Invested Capital of 2.73%. This is amonst the worse of the industry: AQN underperforms 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 last Return On Invested Capital (2.73%) for AQN is above the 3 year average (2.15%), which is a sign of increasing profitability.
| 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
Looking at the Operating Margin, with a value of 20.38%, 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 of 74.06%. This is in the lower half of the industry: AQN underperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQN is destroying value.
Compared to 1 year ago, AQN has more shares outstanding
AQN has more shares outstanding than it did 5 years ago.
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.29. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
AQN has a Altman-Z score of 0.29. This is amonst the worse of the industry: AQN underperforms 90.48% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a Debt to Equity ratio of 1.29. This is amongst the best in the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.29 |
ROIC/WACC0.47
WACC5.87%
2.3 Liquidity
A Current Ratio of 1.09 indicates that AQN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, AQN is in line with its industry, outperforming 47.62% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that AQN may have some problems paying its short term obligations.
AQN's Quick ratio of 0.90 is in line compared to the rest of the industry. AQN outperforms 47.62% of its industry peers.
| 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.
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)-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
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.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue Next Year-11.47%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.09%
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
The Price/Earnings ratio is 17.82, which indicates a rather expensive current valuation of AQN.
Compared to the rest of the industry, the Price/Earnings ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 61.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (27.06), we can say AQN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.53, AQN is valued correctly.
Based on the Price/Forward Earnings ratio, AQN is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, AQN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
80.95% of the companies in the same industry are cheaper than AQN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.68%, AQN is a good candidate for dividend investing.
With a Dividend Yield of 4.68, AQN pays less dividend than the industry average, which is at 4.97. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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-17.76%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
TSX:AQN (9/5/2025, 7:00:00 PM)
7.84
+0.06 (+0.77%)
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 Cap6.02B
Analysts52.86
Price Target6.71 (-14.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend0.56
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)2.89%
PT rev (3m)18.74%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.98%
EPS NY rev (3m)5.98%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.1%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.83 | ||
| P/FCF | N/A | ||
| P/OCF | 9.88 | ||
| P/B | 0.93 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 11.81 |
EPS(TTM)0.44
EY5.61%
EPS(NY)0.5
Fwd EY6.44%
FCF(TTM)-0.76
FCFYN/A
OCF(TTM)0.79
OCFY10.12%
SpS4.28
BVpS8.42
TBVpS5.93
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 | 0.29 |
F-Score4
WACC5.87%
ROIC/WACC0.47
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-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-11.47%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.09%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
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%