Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 26 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. AQN is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AQN was profitable.
In the past year AQN had a positive cash flow from operations.
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

With a Return On Assets value of -0.27%, AQN is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
The Return On Equity of AQN (-0.80%) is worse than 92.31% of its industry peers.
AQN has a Return On Invested Capital of 3.16%. This is amonst the worse of the industry: AQN underperforms 84.62% 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 3.94%.
The last Return On Invested Capital (3.16%) for AQN is above the 3 year average (2.36%), which is a sign of increasing profitability.

		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.
In the last couple of years the Operating Margin of AQN has declined.
AQN has a Gross Margin of 73.94%. This is in the better half of the industry: AQN outperforms 76.92% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

Based on the Altman-Z score of 0.35, we must say that AQN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.35, AQN is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
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	0.35

ROIC/WACC0.54

WACC5.89%

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.
The Current ratio of AQN (1.23) is better than 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 Quick ratio of 1.03. This is amongst the best in the industry. AQN outperforms 92.31% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.23
Quick Ratio	1.03

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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 -23.92% 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)-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.
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-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

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.61 indicates a rather expensive valuation of AQN.
69.23% of the companies in the same industry are cheaper than AQN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (28.39), we can say AQN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.65, the valuation of AQN can be described as rather expensive.
65.38% of the companies in the same industry are cheaper than AQN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, AQN is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	19.61
Fwd PE	17.65

4.2 Price Multiples

AQN's Enterprise Value to EBITDA is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	12.54

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-0.48%

EPS Next 3Y6.43%

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5. Dividend

5.1 Amount

AQN has a Yearly Dividend Yield of 6.58%, which is a nice return.
AQN's Dividend Yield is rather good when compared to the industry average which is at 3.77. AQN pays more dividend than 92.31% of the companies in the same industry.
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	6.58%

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.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP-569.86%

EPS Next 2Y-0.48%

EPS Next 3Y6.43%

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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 for AQN stock?

ChartMill assigns a valuation rating of 1 / 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 financial health of ALGONQUIN POWER & UTILITIES (AQN) stock?

The financial health rating of ALGONQUIN POWER & UTILITIES (AQN) is 3 / 10.

Is the dividend of ALGONQUIN POWER & UTILITIES sustainable?

The dividend rating of ALGONQUIN POWER & UTILITIES (AQN) is 6 / 10 and the dividend payout ratio is -569.86%.