ALGONQUIN POWER & UTILITIES (AQN)
CA0158571053 - Common Stock
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 medium profitability rating, but doesn't score so well on its financial health evaluation. AQN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AQN was profitable.
AQN had a positive operating cash flow in the past year.
Of the past 5 years AQN 4 years were profitable.
In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AQN (0.11%) is worse than 84.62% of its industry peers.
AQN has a worse Return On Equity (0.40%) than 88.46% of its industry peers.
AQN has a Return On Invested Capital of 2.36%. This is amonst the worse of the industry: AQN underperforms 88.46% 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 3.73%.
The 3 year average ROIC (2.30%) for AQN is below the current ROIC(2.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.4% | ||
| ROIC | 2.36% |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.3%
ROIC(5y)2.45%
1.3 Margins
AQN's Profit Margin of 0.75% is on the low side compared to the rest of the industry. AQN is outperformed by 84.62% of its industry peers.
AQN's Profit Margin has declined in the last couple of years.
AQN has a Operating Margin (18.45%) which is comparable to the rest of the industry.
AQN's Operating Margin has declined in the last couple of years.
AQN has a Gross Margin of 73.45%. This is amongst the best in the industry. AQN outperforms 84.62% of its industry peers.
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 | 18.45% | ||
| PM (TTM) | 0.75% | ||
| GM | 73.45% |
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQN is destroying value.
The number of shares outstanding for AQN has been increased compared to 1 year ago.
AQN has more shares outstanding than it did 5 years ago.
AQN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.29, we must say that AQN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AQN (0.29) is worse than 96.15% of its industry peers.
AQN has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
AQN has a Debt to Equity ratio (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.29 |
ROIC/WACC0.43
WACC5.48%
2.3 Liquidity
A Current Ratio of 0.63 indicates that AQN may have some problems paying its short term obligations.
AQN's Current ratio of 0.63 is on the low side compared to the rest of the industry. AQN is outperformed by 61.54% of its industry peers.
AQN has a Quick Ratio of 0.63. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
AQN's Quick ratio of 0.53 is in line compared to the rest of the industry. AQN outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.71%.
Measured over the past years, AQN shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.95% on average per year.
Looking at the last year, AQN shows a decrease in Revenue. The Revenue has decreased by -2.43% in the last year.
Measured over the past years, AQN shows a quite strong growth in Revenue. The Revenue has been growing by 10.35% on average per year.
EPS 1Y (TTM)-25.71%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS growth Q2Q-27.27%
Revenue 1Y (TTM)-2.43%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Revenue growth Q2Q-9.71%
3.2 Future
The Earnings Per Share is expected to grow by 4.76% on average over the next years.
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y1.65%
EPS Next 2Y2.41%
EPS Next 3Y6.96%
EPS Next 5Y4.76%
Revenue Next Year6.79%
Revenue Next 2Y3.29%
Revenue Next 3Y4.17%
Revenue Next 5Y1.55%
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
A Price/Earnings ratio of 11.77 indicates a reasonable valuation of AQN.
Compared to the rest of the industry, the Price/Earnings ratio of AQN indicates a somewhat cheap valuation: AQN is cheaper than 73.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.92. AQN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.58, the valuation of AQN can be described as very reasonable.
AQN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AQN is cheaper than 73.08% of the companies in the same industry.
AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQN is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.15
PEG (5Y)N/A
EPS Next 2Y2.41%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 7.11%, which is a nice return.
AQN's Dividend Yield is rather good when compared to the industry average which is at 4.43. AQN pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
5.2 History
The dividend of AQN has a limited annual growth rate of 4.94%.
AQN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1628.23% of the earnings are spent on dividend by AQN. This is not a sustainable payout ratio.
The dividend of AQN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP1628.23%
EPS Next 2Y2.41%
EPS Next 3Y6.96%
ALGONQUIN POWER & UTILITIES
NYSE:AQN (4/26/2024, 6:00:00 PM)
After market: 6.12 0 (0%)6.12
-0.05 (-0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 11.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.45% | ||
| PM (TTM) | 0.75% | ||
| GM | 73.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.71%
EPS 3Y-6.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.43%
Revenue growth 3Y17.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y