ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQN - CA0158571053 - Common Stock
6.14 USD
+0.06 (+0.99%)
5.9897 USD
-0.15 (-2.45%)
Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 26 industry peers in the Multi-Utilities industry. AQN may be in some trouble as it scores bad on both profitability and health. AQN has a expensive valuation and it also scores bad on growth.
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.
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
Looking at the Return On Assets, with a value of -0.27%, AQN is doing worse than 92.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.80%, AQN is doing worse than 92.31% of the companies in the same industry.
With a Return On Invested Capital value of 3.16%, AQN is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.96%.
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
AQN has a Operating Margin of 21.55%. This is comparable to the rest of the industry: AQN outperforms 57.69% of its industry peers.
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.
The number of shares outstanding for AQN has been increased compared to 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
AQN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that AQN is in the distress zone and has some risk of bankruptcy.
AQN has a worse Altman-Z score (0.32) 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.
AQN has a better Debt to Equity ratio (1.33) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.32 |
ROIC/WACC0.55
WACC5.75%
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 has a Current ratio of 1.23. This is amongst the best in the industry. AQN outperforms 92.31% of its industry peers.
AQN has a Quick Ratio of 1.03. 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 Quick ratio of 1.03 is amongst the best of the industry. AQN outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -29.79% in the last year.
AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.38% yearly.
The Revenue for AQN has decreased by -23.92% in the past year. This is quite bad
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
The Earnings Per Share is expected to grow by 4.09% on average over the next years.
Based on estimates for the next years, AQN will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
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
AQN is valuated rather expensively with a Price/Earnings ratio of 18.61.
Compared to the rest of the industry, the Price/Earnings ratio of AQN is on the same level as its industry peers.
AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 16.77 indicates a correct valuation of AQN.
AQN's Price/Forward Earnings ratio is in line with the industry average.
AQN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.77 |
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 | 12.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.44, AQN pays a better dividend. On top of this AQN pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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
AQN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
6.14
+0.06 (+0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner Change3.24%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.72B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target4.91 (-20.03%)
Short Float %1.19%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)3.51%
PT rev (3m)0.01%
EPS NQ rev (1m)-17.05%
EPS NQ rev (3m)-17.95%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.77 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 10.13 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)0.33
EY5.37%
EPS(NY)0.37
Fwd EY5.96%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.61
OCFY9.88%
SpS3.11
BVpS6.05
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 | 0.32 |
F-Score4
WACC5.75%
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-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
Revenue Next 5Y2.3%
EBIT growth 1Y-15.87%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
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 -15.04% 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%.