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. Both the profitability and financial health of AQN have multiple concerns. AQN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AQN had positive earnings in the past year.
In the past year AQN had a positive cash flow from operations.
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 has a worse Return On Assets (-9.49%) than 80.95% of its industry peers.
AQN has a Return On Equity of -27.63%. This is amonst the worse of the industry: AQN underperforms 80.95% of its industry peers.
AQN has a better Return On Invested Capital (3.58%) than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.67%.
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
AQN's Operating Margin of 21.00% 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.
The Gross Margin of AQN (73.47%) is comparable to the rest of the industry.
AQN's Gross Margin has been stable in the last couple of years.
| 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
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
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 0.38. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
AQN's Altman-Z score of 0.38 is on the low side compared to the rest of the industry. AQN is outperformed by 66.67% 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.
AQN's Debt to Equity ratio of 1.28 is amongst the best of the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.38 |
ROIC/WACC0.63
WACC5.71%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AQN should not have too much problems paying its short term obligations.
AQN's Current ratio of 1.16 is amongst the best of the industry. AQN outperforms 90.48% of its industry peers.
A Quick Ratio of 0.97 indicates that AQN may have some problems paying its short term obligations.
AQN's Quick ratio of 0.97 is in line compared to the rest of the industry. AQN outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -24.49% in the last year.
The earnings per share for AQN have been decreasing by -10.38% on average. This is quite bad
AQN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.38%.
The Revenue has been growing slightly by 7.38% on average over the past years.
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
AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.86% yearly.
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.
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 15.37, which indicates a correct valuation of AQN.
AQN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. AQN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.61, the valuation of AQN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 71.43% of the companies listed in the same industry.
AQN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQN is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.9 |
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 6.97%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.29, AQN pays a better dividend. On top of this AQN pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-20.99%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
TSX:AQN (6/20/2025, 7:00:00 PM)
7.84
-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 Cap6.02B
Analysts67.69
Price Target6.61 (-15.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
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)15.41%
PT rev (3m)14.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 15.61 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | 10.33 | ||
| P/B | 0.93 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.51
EY6.51%
EPS(NY)0.5
Fwd EY6.4%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)0.76
OCFY9.68%
SpS5.38
BVpS8.39
TBVpS5.91
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 | 0.38 |
F-Score5
WACC5.71%
ROIC/WACC0.63
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 5Y2.86%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.82%
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%