ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) Stock Fundamental Analysis
TSX:AQN-PR-A - Toronto Stock Exchange - CA0158573034 - Currency: CAD
Overall AQN-PR-A gets a fundamental rating of 2 out of 10. We evaluated AQN-PR-A against 21 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN-PR-A have multiple concerns. AQN-PR-A is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AQN-PR-A had positive earnings in the past year.
In the past year AQN-PR-A had a positive cash flow from operations.
AQN-PR-A had positive earnings in 4 of the past 5 years.
AQN-PR-A 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 -6.24%, AQN-PR-A is doing worse than 89.47% of the companies in the same industry.
With a Return On Equity value of -22.90%, AQN-PR-A is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.65%, AQN-PR-A is in line with its industry, outperforming 57.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AQN-PR-A is in line with the industry average of 2.92%.
The 3 year average ROIC (2.09%) for AQN-PR-A is below the current ROIC(2.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.24% | ||
| ROE | -22.9% | ||
| ROIC | 2.65% |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.09%
ROIC(5y)2.23%
1.3 Margins
AQN-PR-A's Profit Margin has declined in the last couple of years.
AQN-PR-A has a worse Operating Margin (19.49%) than 89.47% of its industry peers.
AQN-PR-A's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 74.55%, AQN-PR-A is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AQN-PR-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.49% | ||
| PM (TTM) | N/A | ||
| GM | 74.55% |
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 AQN-PR-A is destroying value.
AQN-PR-A has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AQN-PR-A has more shares outstanding
Compared to 1 year ago, AQN-PR-A has a worse debt to assets ratio.
2.2 Solvency
AQN-PR-A has an Altman-Z score of 0.66. This is a bad value and indicates that AQN-PR-A is not financially healthy and even has some risk of bankruptcy.
AQN-PR-A's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. AQN-PR-A is outperformed by 63.16% of its industry peers.
AQN-PR-A has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
AQN-PR-A's Debt to Equity ratio of 1.49 is amongst the best of the industry. AQN-PR-A outperforms 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.44
WACC6.06%
2.3 Liquidity
AQN-PR-A has a Current Ratio of 0.92. This is a bad value and indicates that AQN-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.92, AQN-PR-A is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
AQN-PR-A has a Quick Ratio of 0.92. This is a bad value and indicates that AQN-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AQN-PR-A (0.77) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for AQN-PR-A have decreased strongly by -18.97% in the last year.
Measured over the past years, AQN-PR-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.95% on average per year.
Looking at the last year, AQN-PR-A shows a quite strong growth in Revenue. The Revenue has grown by 13.32% in the last year.
The Revenue has been growing by 10.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%
3.2 Future
Based on estimates for the next years, AQN-PR-A will show a decrease in Earnings Per Share. The EPS will decrease by -4.45% on average per year.
The Revenue is expected to decrease by -0.28% on average over the next years.
EPS Next Y-22.74%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
EPS Next 5Y-4.45%
Revenue Next Year-4.55%
Revenue Next 2Y-4.94%
Revenue Next 3Y-2.09%
Revenue Next 5Y-0.28%
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 stable.
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 34.84, the valuation of AQN-PR-A can be described as expensive.
63.16% of the companies in the same industry are cheaper than AQN-PR-A, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AQN-PR-A to the average of the S&P500 Index (29.63), we can say AQN-PR-A is valued inline with the index average.
The Price/Forward Earnings ratio is 53.37, which means the current valuation is very expensive for AQN-PR-A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN-PR-A indicates a rather expensive valuation: AQN-PR-A more expensive than 89.47% of the companies listed in the same industry.
AQN-PR-A's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 53.37 |
4.2 Price Multiples
AQN-PR-A's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AQN-PR-A is more expensive than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as AQN-PR-A's earnings are expected to decrease with -11.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
5. Dividend
5.1 Amount
AQN-PR-A has a Yearly Dividend Yield of 5.29%, which is a nice return.
AQN-PR-A's Dividend Yield is comparable with the industry average which is at 5.33.
Compared to an average S&P500 Dividend Yield of 2.27, AQN-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
5.2 History
The dividend of AQN-PR-A has a limited annual growth rate of 4.94%.
AQN-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
AQN-PR-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.94%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
AQN-PR-A has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.84%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP
TSX:AQN-PR-A (2/21/2025, 7:00:00 PM)
23.34
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap17.91B
Analysts68.57
Price Target19.67 (-15.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend0.48
Dividend Growth(5Y)4.94%
DP-28.84%
Div Incr Years1
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.86%
Min EPS beat(2)-15.13%
Max EPS beat(2)13.41%
EPS beat(4)2
Avg EPS beat(4)-1.62%
Min EPS beat(4)-15.13%
Max EPS beat(4)13.41%
EPS beat(8)3
Avg EPS beat(8)-3.44%
EPS beat(12)4
Avg EPS beat(12)-5.16%
EPS beat(16)5
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.17%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)10
Avg Revenue beat(16)2.91%
PT rev (1m)-6.3%
PT rev (3m)0.75%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)-44.56%
EPS NY rev (1m)2.52%
EPS NY rev (3m)-9.6%
Revenue NQ rev (1m)-12.03%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 53.37 | ||
| P/S | 4.02 | ||
| P/FCF | N/A | ||
| P/OCF | 19.89 | ||
| P/B | 2.6 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 18.03 |
EPS(TTM)0.67
EY2.87%
EPS(NY)0.44
Fwd EY1.87%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)1.17
OCFY5.03%
SpS5.81
BVpS8.96
TBVpS6.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.24% | ||
| ROE | -22.9% | ||
| ROCE | 3.69% | ||
| ROIC | 2.65% | ||
| ROICexc | 2.66% | ||
| ROICexgc | 2.91% | ||
| OM | 19.49% | ||
| PM (TTM) | N/A | ||
| GM | 74.55% | ||
| FCFM | N/A |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.09%
ROIC(5y)2.23%
ROICexc(3y)2.1%
ROICexc(5y)2.25%
ROICexgc(3y)2.3%
ROICexgc(5y)2.48%
ROCE(3y)2.91%
ROCE(5y)3.1%
ROICexcg growth 3Y-2.44%
ROICexcg growth 5Y-7.49%
ROICexc growth 3Y-1.59%
ROICexc growth 5Y-6.9%
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%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.49 | ||
| Cap/Depr | 186.56% | ||
| Cap/Sales | 29.67% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 57.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.66 |
F-Score6
WACC6.06%
ROIC/WACC0.44
Cap/Depr(3y)264.2%
Cap/Depr(5y)249.46%
Cap/Sales(3y)45.42%
Cap/Sales(5y)43.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
EPS Next Y-22.74%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
EPS Next 5Y-4.45%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%
Revenue Next Year-4.55%
Revenue Next 2Y-4.94%
Revenue Next 3Y-2.09%
Revenue Next 5Y-0.28%
EBIT growth 1Y21.37%
EBIT growth 3Y9.22%
EBIT growth 5Y5.64%
EBIT Next Year55.11%
EBIT Next 3Y12.57%
EBIT Next 5Y17.41%
FCF growth 1Y55.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.47%
OCF growth 3Y7.52%
OCF growth 5Y3.44%