ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQN - CA0158571053 - Common Stock
6.19 USD
-0.04 (-0.64%)
6.1993 USD
+0.01 (+0.15%)
We assign a fundamental rating of 3 out of 10 to AQN. AQN was compared to 26 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
AQN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQN has a worse Return On Assets (-0.27%) than 92.31% of its industry peers.
The Return On Equity of AQN (-0.80%) is worse than 92.31% of its industry peers.
The Return On Invested Capital of AQN (3.16%) is worse than 84.62% 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 3.94%.
The 3 year average ROIC (2.36%) for AQN is below the current ROIC(3.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROIC | 3.16% |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.36%
ROIC(5y)2.31%
1.3 Margins
The Operating Margin of AQN (21.55%) is comparable to the rest of the industry.
AQN's Operating Margin has declined in the last couple of years.
The Gross Margin of AQN (73.94%) is better than 76.92% of its industry peers.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.55% | ||
| PM (TTM) | N/A | ||
| GM | 73.94% |
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.
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.
The debt/assets ratio for AQN has been reduced compared to a year ago.
2.2 Solvency
AQN has an Altman-Z score of 0.33. 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 (0.33) is worse than 96.15% of its industry peers.
AQN has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.33, AQN is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.55
WACC5.77%
2.3 Liquidity
AQN has a Current Ratio of 1.23. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
AQN's Current ratio of 1.23 is amongst the best of the industry. AQN outperforms 92.31% of its industry peers.
A Quick Ratio of 1.03 indicates that AQN should not have too much problems paying its short term obligations.
AQN has a better Quick ratio (1.03) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
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 -23.92% in the last year.
The Revenue has been growing slightly by 7.38% on average over the past years.
EPS 1Y (TTM)-29.79%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
3.2 Future
AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
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-12.26%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
EPS Next 5Y4.09%
Revenue Next Year-9.53%
Revenue Next 2Y-3.01%
Revenue Next 3Y-0.37%
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
AQN is valuated rather expensively with a Price/Earnings ratio of 18.76.
AQN's Price/Earnings ratio is a bit more expensive when compared to the industry. AQN is more expensive than 65.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. AQN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.89, AQN is valued correctly.
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 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, AQN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 4.28%, which is a nice return.
AQN's Dividend Yield is comparable with the industry average which is at 4.62.
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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
AQN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
6.19
-0.04 (-0.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change3.25%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.76B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target5.04 (-18.58%)
Short Float %0.98%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-569.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.46%
Min EPS beat(2)-0.69%
Max EPS beat(2)35.61%
EPS beat(4)2
Avg EPS beat(4)12.84%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)4
Avg EPS beat(8)5.61%
EPS beat(12)5
Avg EPS beat(12)1.98%
EPS beat(16)6
Avg EPS beat(16)-0.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)0.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.75%
Revenue beat(12)6
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)2.68%
PT rev (3m)3.34%
EPS NQ rev (1m)-9.38%
EPS NQ rev (3m)-24.82%
EPS NY rev (1m)3.27%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.89 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 10.21 | ||
| P/B | 1.02 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 12.21 |
EPS(TTM)0.33
EY5.33%
EPS(NY)0.37
Fwd EY5.92%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.61
OCFY9.79%
SpS3.11
BVpS6.04
TBVpS4.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROCE | 4% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 3.56% | ||
| OM | 21.55% | ||
| PM (TTM) | N/A | ||
| GM | 73.94% | ||
| FCFM | N/A |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.36%
ROIC(5y)2.31%
ROICexc(3y)2.37%
ROICexc(5y)2.33%
ROICexgc(3y)2.6%
ROICexgc(5y)2.56%
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 | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.76 | ||
| Cap/Depr | 208.02% | ||
| Cap/Sales | 34.55% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 51.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.33 |
F-Score4
WACC5.77%
ROIC/WACC0.55
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-12.26%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-9.53%
Revenue Next 2Y-3.01%
Revenue Next 3Y-0.37%
Revenue Next 5Y2.3%
EBIT growth 1Y-15.87%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year48.7%
EBIT Next 3Y21.37%
EBIT Next 5YN/A
FCF growth 1Y-47.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-27.45%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%
ALGONQUIN POWER & UTILITIES / AQN FAQ
What is the ChartMill fundamental rating of ALGONQUIN POWER & UTILITIES (AQN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AQN.
What is the valuation status of ALGONQUIN POWER & UTILITIES (AQN) stock?
ChartMill assigns a valuation rating of 2 / 10 to ALGONQUIN POWER & UTILITIES (AQN). This can be considered as Overvalued.
How profitable is ALGONQUIN POWER & UTILITIES (AQN) stock?
ALGONQUIN POWER & UTILITIES (AQN) 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) is expected to decline by -12.26% in the next year.
How sustainable is the dividend of ALGONQUIN POWER & UTILITIES (AQN) stock?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN) is 6 / 10 and the dividend payout ratio is -569.86%.