ALGONQUIN PWR & - AQNCN 7 3/4 06/15/24 (AQNU)
US0158578734
We assign a fundamental rating of 2 out of 10 to AQNU. AQNU was compared to 26 industry peers in the Multi-Utilities industry. While AQNU is still in line with the averages on profitability rating, there are concerns on its financial health. AQNU has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AQNU had positive earnings in the past year.
AQNU had a positive operating cash flow in the past year.
AQNU had positive earnings in 4 of the past 5 years.
AQNU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQNU has a Return On Assets of 0.11%. This is amonst the worse of the industry: AQNU underperforms 88.46% of its industry peers.
AQNU has a worse Return On Equity (0.40%) than 92.31% of its industry peers.
With a Return On Invested Capital value of 2.36%, AQNU is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for AQNU is in line with the industry average of 3.70%.
The last Return On Invested Capital (2.36%) for AQNU is above the 3 year average (2.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.4% | ||
| ROIC | 2.36% |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.3%
ROIC(5y)2.45%
1.3 Margins
With a Profit Margin value of 0.75%, AQNU is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
AQNU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.45%, AQNU is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AQNU has declined.
The Gross Margin of AQNU (73.45%) is better than 80.77% of its industry peers.
AQNU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.45% | ||
| PM (TTM) | 0.75% | ||
| GM | 73.45% |
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQNU is destroying value.
AQNU has more shares outstanding than it did 1 year ago.
AQNU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AQNU has a worse debt to assets ratio.
2.2 Solvency
AQNU has an Altman-Z score of 0.80. This is a bad value and indicates that AQNU is not financially healthy and even has some risk of bankruptcy.
AQNU has a Altman-Z score of 0.80. This is comparable to the rest of the industry: AQNU outperforms 50.00% of its industry peers.
AQNU has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
AQNU has a Debt to Equity ratio (1.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.36
WACC6.57%
2.3 Liquidity
A Current Ratio of 0.63 indicates that AQNU may have some problems paying its short term obligations.
AQNU's Current ratio of 0.63 is on the low side compared to the rest of the industry. AQNU is outperformed by 80.77% of its industry peers.
A Quick Ratio of 0.53 indicates that AQNU may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, AQNU is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for AQNU have decreased strongly by -25.71% in the last year.
Measured over the past years, AQNU shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.95% on average per year.
AQNU shows a decrease in Revenue. In the last year, the revenue decreased by -2.43%.
Measured over the past years, AQNU shows a quite strong growth in Revenue. The Revenue has been growing by 10.35% on average per year.
EPS 1Y (TTM)-25.71%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS growth Q2Q-27.27%
Revenue 1Y (TTM)-2.43%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Revenue growth Q2Q-9.71%
3.2 Future
Based on estimates for the next years, AQNU will show a small growth in Earnings Per Share. The EPS will grow by 4.76% on average per year.
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y1.65%
EPS Next 2Y2.41%
EPS Next 3Y6.96%
EPS Next 5Y4.76%
Revenue Next Year6.79%
Revenue Next 2Y3.29%
Revenue Next 3Y4.17%
Revenue Next 5Y1.55%
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
Based on the Price/Earnings ratio of 43.88, the valuation of AQNU can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AQNU indicates a rather expensive valuation: AQNU more expensive than 88.46% of the companies listed in the same industry.
AQNU's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
The Price/Forward Earnings ratio is 43.17, which means the current valuation is very expensive for AQNU.
Based on the Price/Forward Earnings ratio, AQNU is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 20.72. AQNU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.88 | ||
| Fwd PE | 43.17 |
4.2 Price Multiples
92.31% of the companies in the same industry are cheaper than AQNU, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)26.65
PEG (5Y)N/A
EPS Next 2Y2.41%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
AQNU has a Yearly Dividend Yield of 6.80%, which is a nice return.
Compared to an average industry Dividend Yield of 4.31, AQNU pays a better dividend. On top of this AQNU pays more dividend than 96.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AQNU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
5.2 History
The dividend of AQNU has a limited annual growth rate of 4.94%.
AQNU has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)4.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
1628.23% of the earnings are spent on dividend by AQNU. This is not a sustainable payout ratio.
AQNU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP1628.23%
EPS Next 2Y2.41%
EPS Next 3Y6.96%
ALGONQUIN PWR & - AQNCN 7 3/4 06/15/24
NYSE:AQNU (5/3/2024, 1:47:10 PM)
22.82
+0.27 (+1.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.88 | ||
| Fwd PE | 43.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)26.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.45% | ||
| PM (TTM) | 0.75% | ||
| GM | 73.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.71%
EPS 3Y-6.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.43%
Revenue growth 3Y17.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y