ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
TSX:AQN - Toronto Stock Exchange - CA0158571053 - Common Stock - Currency: CAD
Taking everything into account, AQN scores 3 out of 10 in our fundamental rating. AQN was compared to 21 industry peers in the Multi-Utilities industry. AQN may be in some trouble as it scores bad on both profitability and health. AQN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
AQN had positive earnings in the past year.
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.
Each year in the past 5 years AQN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -9.49%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
The Return On Equity of AQN (-27.63%) is worse than 80.95% of its industry peers.
AQN has a better Return On Invested Capital (3.58%) than 71.43% 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 3.66%.
The last Return On Invested Capital (3.58%) for AQN is above the 3 year average (2.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROIC | 3.58% |
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
With a Operating Margin value of 21.00%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of AQN has declined.
With a Gross Margin value of 73.47%, AQN is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AQN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, AQN has an improved debt to assets ratio.
2.2 Solvency
AQN has an Altman-Z score of 0.39. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AQN (0.39) is worse than 71.43% of its industry peers.
AQN has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.28, AQN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.61
WACC5.84%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AQN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, AQN belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that AQN may have some problems paying its short term obligations.
AQN has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.49%.
AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.38% yearly.
Looking at the last year, AQN shows a quite strong growth in Revenue. The Revenue has grown by 13.38% in the last year.
AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
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.
AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue Next Year-9.57%
Revenue Next 2Y-3.12%
Revenue Next 3Y-0.57%
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.
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 16.00 indicates a correct valuation of AQN.
AQN's Price/Earnings is on the same level as the industry average.
AQN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.16, 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.
The average S&P500 Price/Forward Earnings ratio is at 36.28. AQN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.16 |
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 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.04 |
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 4.46%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.22, AQN's dividend is way lower than its industry peers. On top of this 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-20.99%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
TSX:AQN (8/5/2025, 7:00:00 PM)
8.16
+0.02 (+0.25%)
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 Cap6.27B
Analysts53.33
Price Target6.61 (-19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend0.56
Dividend Growth(5Y)0.06%
DP-20.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.21%
Min EPS beat(2)-25.74%
Max EPS beat(2)42.17%
EPS beat(4)2
Avg EPS beat(4)3.68%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)-2.73%
EPS beat(12)5
Avg EPS beat(12)-3.23%
EPS beat(16)6
Avg EPS beat(16)-2.32%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)5.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)7
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)2.48%
PT rev (1m)0%
PT rev (3m)15.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.16 | ||
| P/S | 1.51 | ||
| P/FCF | N/A | ||
| P/OCF | 10.69 | ||
| P/B | 0.97 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)0.51
EY6.25%
EPS(NY)0.51
Fwd EY6.19%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)0.76
OCFY9.36%
SpS5.41
BVpS8.43
TBVpS5.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROCE | 4.97% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 4.04% | ||
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% | ||
| 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.61 | ||
| Cap/Depr | 199.46% | ||
| Cap/Sales | 29.3% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 39.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.84%
ROIC/WACC0.61
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)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
Revenue Next Year-9.57%
Revenue Next 2Y-3.12%
Revenue Next 3Y-0.57%
Revenue Next 5Y2.3%
EBIT growth 1Y26.92%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
EBIT Next 5YN/A
FCF growth 1Y-3.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.77%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%