ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - NYSE:AQN - CA0158571053 - Common Stock
5.86 USD
+0.03 (+0.51%)
5.86 USD
0 (0%)
AQN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN have multiple concerns. 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.
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
AQN has a Return On Assets of -10.09%. This is amonst the worse of the industry: AQN underperforms 92.00% of its industry peers.
The Return On Equity of AQN (-29.51%) is worse than 92.00% of its industry peers.
The Return On Invested Capital of AQN (3.00%) is worse than 84.00% 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 3.82%.
The 3 year average ROIC (2.36%) for AQN is below the current ROIC(3.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROIC | 3% |
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 (20.38%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AQN has declined.
With a decent Gross Margin value of 74.06%, AQN is doing good in the industry, outperforming 76.00% of the companies in the same industry.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% |
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.
AQN has more shares outstanding than it did 5 years ago.
AQN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.30, we must say that AQN is in the distress zone and has some risk of bankruptcy.
AQN has a worse Altman-Z score (0.30) than 96.00% of its industry peers.
AQN has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.29, AQN is doing good in the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.3 |
ROIC/WACC0.52
WACC5.82%
2.3 Liquidity
A Current Ratio of 1.09 indicates that AQN should not have too much problems paying its short term obligations.
AQN's Current ratio of 1.09 is amongst the best of the industry. AQN outperforms 92.00% of its industry peers.
A Quick Ratio of 0.90 indicates that AQN may have some problems paying its short term obligations.
AQN's Quick ratio of 0.90 is amongst the best of the industry. AQN outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.00%.
The earnings per share for AQN have been decreasing by -10.38% on average. This is quite bad
The Revenue for AQN has decreased by -25.45% in the past year. This is quite bad
AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
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.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
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 18.31, which indicates a rather expensive current valuation of AQN.
AQN's Price/Earnings is on the same level as the industry average.
AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 16.05, AQN is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as AQN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, AQN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AQN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 6.59%, which is a nice return.
Compared to an average industry Dividend Yield of 4.79, AQN pays a better dividend. On top of this AQN pays more dividend than 92.00% of the companies listed in the same industry.
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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-17.76%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
5.86
+0.03 (+0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.50B
Analysts68.33
Price Target4.74 (-19.11%)
Short Float %1.95%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-17.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.74%
Min EPS beat(2)-0.69%
Max EPS beat(2)42.17%
EPS beat(4)1
Avg EPS beat(4)0.15%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)0.22%
EPS beat(12)4
Avg EPS beat(12)-3.83%
EPS beat(16)5
Avg EPS beat(16)-3.04%
Revenue beat(2)2
Avg Revenue beat(2)3.06%
Min Revenue beat(2)0.82%
Max Revenue beat(2)5.31%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.11%
Revenue beat(12)7
Avg Revenue beat(12)0.07%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)-3.38%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.46%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.05 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | 10.2 | ||
| P/B | 0.96 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)0.32
EY5.46%
EPS(NY)0.37
Fwd EY6.23%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)0.57
OCFY9.8%
SpS3.1
BVpS6.1
TBVpS4.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROCE | 3.8% | ||
| ROIC | 3% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.38% | ||
| OM | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% | ||
| 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%
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-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.71 | ||
| Cap/Depr | 209.43% | ||
| Cap/Sales | 36.33% | ||
| Interest Coverage | 1.25 | ||
| Cash Conversion | 49.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.3 |
F-Score4
WACC5.82%
ROIC/WACC0.52
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)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
EPS Next Y-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
EBIT Next 5YN/A
FCF growth 1Y-33.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.88%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%