ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
NYSE:AQN - New York Stock Exchange, Inc. - CA0158571053 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AQN. AQN was compared to 25 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 is valued expensive and 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.
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
AQN has a worse Return On Assets (-9.49%) than 92.00% of its industry peers.
The Return On Equity of AQN (-27.63%) is worse than 92.00% of its industry peers.
AQN has a Return On Invested Capital of 3.93%. This is comparable to the rest of the industry: AQN outperforms 56.00% 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 3.92%.
The 3 year average ROIC (2.36%) for AQN is below the current ROIC(3.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROIC | 3.93% |
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 (21.00%) which is in line with its industry peers.
AQN's Operating Margin has declined in the last couple of years.
AQN has a better Gross Margin (73.47%) than 80.00% of its industry peers.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% |
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.
The number of shares outstanding for AQN has been increased compared to 5 years ago.
Compared to 1 year ago, AQN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that AQN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AQN (0.39) is worse than 92.00% of its industry peers.
AQN has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
AQN has a Debt to Equity ratio of 1.28. This is in the better half of the industry: AQN outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.69
WACC5.7%
2.3 Liquidity
AQN has a Current Ratio of 1.16. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, AQN belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that AQN may have some problems paying its short term obligations.
AQN's Quick ratio of 0.97 is amongst the best of the industry. AQN outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -24.49% in the last year.
The earnings per share for AQN have been decreasing by -10.38% on average. This is quite bad
Looking at the last year, AQN shows a quite strong growth in Revenue. The Revenue has grown by 13.38% in the last year.
Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
EPS 1Y (TTM)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
3.2 Future
AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.86% yearly.
The Revenue is expected to grow by 0.82% on average over the next years.
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y2.86%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.82%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.65, the valuation of AQN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AQN.
Compared to an average S&P500 Price/Earnings ratio of 26.53, AQN is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.81 indicates a correct valuation of AQN.
AQN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. AQN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 15.81 |
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 | 9.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, AQN is a good candidate for dividend investing.
AQN's Dividend Yield is a higher than the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.39, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-20.99%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
5.79
-0.06 (-1.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change7.07%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap4.45B
Analysts67.69
Price Target4.39 (-24.18%)
Short Float %3.16%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-20.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.21%
Min EPS beat(2)-25.74%
Max EPS beat(2)42.17%
EPS beat(4)2
Avg EPS beat(4)3.68%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)-2.73%
EPS beat(12)5
Avg EPS beat(12)-3.23%
EPS beat(16)6
Avg EPS beat(16)-2.32%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)5.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)7
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)2.48%
PT rev (1m)6.04%
PT rev (3m)10.21%
EPS NQ rev (1m)-12.49%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 15.81 | ||
| P/S | 1.48 | ||
| P/FCF | N/A | ||
| P/OCF | 10.46 | ||
| P/B | 0.95 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)0.37
EY6.39%
EPS(NY)0.37
Fwd EY6.32%
FCF(TTM)-0.6
FCFYN/A
OCF(TTM)0.55
OCFY9.56%
SpS3.92
BVpS6.11
TBVpS4.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROCE | 4.97% | ||
| ROIC | 3.93% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 4.44% | ||
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% | ||
| 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.61 | ||
| Cap/Depr | 199.46% | ||
| Cap/Sales | 29.3% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 39.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.7%
ROIC/WACC0.69
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)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y2.86%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.82%
EBIT growth 1Y26.92%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
EBIT Next 5YN/A
FCF growth 1Y-3.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.77%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%