ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - TSX:AQN - CA0158571053 - Common Stock
8.72 CAD
+0.63 (+7.79%)
AQN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN have multiple concerns. AQN does not seem to be growing, but still is valued expensively.
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
The Return On Assets of AQN (-10.09%) is worse than 80.95% of its industry peers.
The Return On Equity of AQN (-29.51%) is worse than 80.95% of its industry peers.
With a Return On Invested Capital value of 2.73%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for AQN 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's Operating Margin of 20.38% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
In the last couple of years the Operating Margin of AQN has declined.
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.
AQN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
The debt/assets ratio for AQN has been reduced compared to a year ago.
2.2 Solvency
AQN has an Altman-Z score of 0.32. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.32, AQN is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
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 | 0.32 |
ROIC/WACC0.47
WACC5.86%
2.3 Liquidity
A Current Ratio of 1.09 indicates that AQN should not have too much problems paying its short term obligations.
AQN's Current ratio of 1.09 is in line compared 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.
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
The earnings per share for AQN have decreased strongly by -29.79% in the last year.
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 a decrease in Revenue. In the last year, the revenue decreased by -3.51%.
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)-29.79%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
3.2 Future
The Earnings Per Share is expected to grow by 4.09% 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 2.30% on average per year.
EPS Next Y-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
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.
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 18.55, which indicates a rather expensive current valuation of AQN.
Based on the Price/Earnings ratio, AQN is valued a bit more expensive than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (26.06), we can say AQN is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.88 indicates a correct valuation of AQN.
66.67% of the companies in the same industry are cheaper than AQN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AQN to the average of the S&P500 Index (32.73), we can say AQN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
AQN's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AQN is more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 4.50%, which is a nice return.
With a Dividend Yield of 4.50, AQN pays less dividend than the industry average, which is at 4.90. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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-0.53%
EPS Next 3Y5.89%
TSX:AQN (11/7/2025, 7:00:00 PM)
8.72
+0.63 (+7.79%)
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 Cap6.70B
Revenue(TTM)2.32B
Net Income(TTM)-1.38B
Analysts68.33
Price Target6.71 (-23.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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)1.66%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 16.88 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 10.76 | ||
| P/B | 1.01 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)0.47
EY5.39%
EPS(NY)0.52
Fwd EY5.92%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)0.81
OCFY9.29%
SpS4.37
BVpS8.6
TBVpS6.05
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.54
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%
ROICexgc growth 3Y4.3%
ROICexgc 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 | 0.32 |
F-Score4
WACC5.86%
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)-29.79%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%12.5%
EPS Next Y-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
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%
ALGONQUIN POWER & UTILITIES / AQN.CA FAQ
What is the ChartMill fundamental rating of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AQN.CA.
What is the valuation status of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to ALGONQUIN POWER & UTILITIES (AQN.CA). This can be considered as Overvalued.
How profitable is ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ALGONQUIN POWER & UTILITIES (AQN.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for ALGONQUIN POWER & UTILITIES?
The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN.CA) is expected to decline by -15.04% in the next year.
How sustainable is the dividend of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 6 / 10 and the dividend payout ratio is -17.76%.