ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - NYSE:AQN - CA0158571053 - Common Stock
5.48 USD
0 (0%)
5.48 USD
0 (0%)
Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 25 industry peers in the Multi-Utilities industry. AQN may be in some trouble as it scores bad on both profitability and health. 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
Looking at the Return On Assets, with a value of -10.09%, AQN is doing worse than 92.00% of the companies in the same industry.
AQN's Return On Equity of -29.51% is on the low side compared to the rest of the industry. AQN is outperformed by 92.00% of its industry peers.
With a Return On Invested Capital value of 3.00%, AQN is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
AQN had an Average Return On Invested Capital over the past 3 years of 2.36%. This 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
The Operating Margin of AQN (20.38%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AQN has declined.
AQN's Gross Margin of 74.06% is fine compared to the rest of the industry. AQN outperforms 76.00% 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 | 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.
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 better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.28. 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 (0.28) is worse 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.
Looking at the Debt to Equity ratio, with a value of 1.29, AQN is in the better half of 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 | 0.28 |
ROIC/WACC0.52
WACC5.79%
2.3 Liquidity
AQN has a Current Ratio of 1.09. 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 better Current ratio (1.09) than 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 has a Quick ratio of 0.90. This is amongst the best in 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
AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.45%.
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
Based on estimates for the next years, AQN will show a small growth in Earnings Per Share. The EPS will grow by 6.99% on average per year.
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-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue Next Year-11.06%
Revenue Next 2Y-4.03%
Revenue Next 3Y-1.05%
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
With a Price/Earnings ratio of 17.13, AQN is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as AQN.
Compared to an average S&P500 Price/Earnings ratio of 27.38, AQN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.00, AQN is valued correctly.
AQN's Price/Forward Earnings ratio is in line with the industry average.
AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15 |
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 | 11.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 4.82%, which is a nice return.
AQN's Dividend Yield is comparable with the industry average which is at 4.63.
Compared to an average S&P500 Dividend Yield of 2.38, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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
The earnings of AQN are negative and hence is the payout ratio. AQN will probably not be able to sustain this dividend level.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-17.76%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
5.48
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner Change6.09%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.21B
Analysts52.86
Price Target4.88 (-10.95%)
Short Float %2.14%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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)0.16%
PT rev (3m)1.05%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15 | ||
| P/S | 1.77 | ||
| P/FCF | N/A | ||
| P/OCF | 9.54 | ||
| P/B | 0.9 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)0.32
EY5.84%
EPS(NY)0.37
Fwd EY6.67%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)0.57
OCFY10.48%
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 | 0.28 |
F-Score4
WACC5.79%
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-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-11.06%
Revenue Next 2Y-4.03%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
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%