ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - TSX:AQN - CA0158571053 - Common Stock
7.88 CAD
+0.09 (+1.16%)
AQN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.
In the past year AQN had a positive cash flow from operations.
In multiple years AQN reported negative net income over the last 5 years.
AQN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQN has a worse Return On Assets (-10.09%) than 80.95% of its industry peers.
AQN's Return On Equity of -29.51% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
AQN's Return On Invested Capital of 2.73% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% 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 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
AQN has a worse Operating Margin (20.38%) than 80.95% of its industry peers.
AQN's Operating Margin has declined in the last couple of years.
The Gross Margin of AQN (74.06%) is worse than 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
AQN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 0.28. 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 0.28, AQN is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a better Debt to Equity ratio (1.29) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.28 |
ROIC/WACC0.47
WACC5.76%
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.
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.
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 4.09% on average per year.
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
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
Based on the Price/Earnings ratio of 17.51, the valuation of AQN can be described as rather expensive.
61.90% of the companies in the same industry are cheaper than AQN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.13, AQN is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.33, which 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.
When comparing the Price/Forward Earnings ratio of AQN to the average of the S&P500 Index (22.35), we can say AQN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.33 |
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 | 11.73 |
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
AQN has a Yearly Dividend Yield of 6.63%, which is a nice return.
Compared to an average industry Dividend Yield of 5.46, AQN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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-0.67%
EPS Next 3Y5.62%
TSX:AQN (11/5/2025, 7:00:00 PM)
7.88
+0.09 (+1.16%)
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 Cap6.05B
Revenue(TTM)2.38B
Net Income(TTM)-1381809000
Analysts68.33
Price Target6.71 (-14.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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)-0.06%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.81 | ||
| P/FCF | N/A | ||
| P/OCF | 9.74 | ||
| P/B | 0.92 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)0.45
EY5.71%
EPS(NY)0.51
Fwd EY6.52%
FCF(TTM)-0.77
FCFYN/A
OCF(TTM)0.81
OCFY10.26%
SpS4.36
BVpS8.58
TBVpS6.04
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.32
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 | 0.28 |
F-Score4
WACC5.76%
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-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%
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 -14.99% 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%.