ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN-PR-A - CA0158573034
25 CAD
+0.07 (+0.28%)
Taking everything into account, AQN-PR-A scores 3 out of 10 in our fundamental rating. AQN-PR-A was compared to 19 industry peers in the Multi-Utilities industry. AQN-PR-A has a bad profitability rating. Also its financial health evaluation is rather negative. AQN-PR-A does not seem to be growing, but still is valued expensively. Finally AQN-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AQN-PR-A had positive earnings in the past year.
- AQN-PR-A had a positive operating cash flow in the past year.
- In multiple years AQN-PR-A reported negative net income over the last 5 years.
- Each year in the past 5 years AQN-PR-A had a positive operating cash flow.
1.2 Ratios
- AQN-PR-A has a Return On Assets of -0.27%. This is amonst the worse of the industry: AQN-PR-A underperforms 84.21% of its industry peers.
- AQN-PR-A has a worse Return On Equity (-0.80%) than 84.21% of its industry peers.
- AQN-PR-A's Return On Invested Capital of 2.88% is on the low side compared to the rest of the industry. AQN-PR-A is outperformed by 84.21% of its industry peers.
- AQN-PR-A had an Average Return On Invested Capital over the past 3 years of 2.15%. This is in line with the industry average of 3.73%.
- The last Return On Invested Capital (2.88%) for AQN-PR-A is above the 3 year average (2.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROIC | 2.88% |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.15%
ROIC(5y)2.11%
1.3 Margins
- AQN-PR-A's Operating Margin of 21.55% is on the low side compared to the rest of the industry. AQN-PR-A is outperformed by 84.21% of its industry peers.
- In the last couple of years the Operating Margin of AQN-PR-A has declined.
- Looking at the Gross Margin, with a value of 73.94%, AQN-PR-A is doing worse than 68.42% of the companies in the same industry.
- AQN-PR-A's Gross Margin has been stable in the last couple of years.
| 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%
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.
- Compared to 1 year ago, AQN-PR-A has more shares outstanding
- Compared to 5 years ago, AQN-PR-A has more shares outstanding
- Compared to 1 year ago, AQN-PR-A has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.93, we must say that AQN-PR-A is in the distress zone and has some risk of bankruptcy.
- AQN-PR-A has a Altman-Z score of 0.93. This is amongst the best in the industry. AQN-PR-A outperforms 94.74% of its industry peers.
- AQN-PR-A has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
- AQN-PR-A has a better Debt to Equity ratio (1.33) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACC0.42
WACC6.91%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that AQN-PR-A should not have too much problems paying its short term obligations.
- AQN-PR-A's Current ratio of 1.23 is in line compared to the rest of the industry. AQN-PR-A outperforms 42.11% of its industry peers.
- A Quick Ratio of 1.03 indicates that AQN-PR-A should not have too much problems paying its short term obligations.
- The Quick ratio of AQN-PR-A (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- AQN-PR-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
- Measured over the past years, AQN-PR-A shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.38% on average per year.
- Looking at the last year, AQN-PR-A shows a very negative growth in Revenue. The Revenue has decreased by -23.92% in the last year.
- The Revenue has been growing slightly by 7.38% on average over the past years.
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
- The Earnings Per Share is expected to grow by 4.09% on average over the next years.
- Based on estimates for the next years, AQN-PR-A 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 54.35, the valuation of AQN-PR-A can be described as expensive.
- AQN-PR-A's Price/Earnings ratio is rather expensive when compared to the industry. AQN-PR-A is more expensive than 84.21% of the companies in the same industry.
- AQN-PR-A's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 49.38, which means the current valuation is very expensive for AQN-PR-A.
- 73.68% of the companies in the same industry are cheaper than AQN-PR-A, based on the Price/Forward Earnings ratio.
- AQN-PR-A is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.35 | ||
| Fwd PE | 49.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AQN-PR-A is valued expensively inside the industry as 84.21% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.52%, AQN-PR-A is a good candidate for dividend investing.
- AQN-PR-A's Dividend Yield is rather good when compared to the industry average which is at 4.80. AQN-PR-A pays more dividend than 94.74% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AQN-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
- The dividend of AQN-PR-A has a limited annual growth rate of 0.06%.
- AQN-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- AQN-PR-A has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.06%
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.
- The dividend of AQN-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP / AQN-PR-A.CA FAQ
What is the fundamental rating for AQN-PR-A stock?
ChartMill assigns a fundamental rating of 3 / 10 to AQN-PR-A.CA.
Can you provide the valuation status for ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP?
ChartMill assigns a valuation rating of 0 / 10 to ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA). This can be considered as Overvalued.
How profitable is ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) stock?
ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP?
The Earnings per Share (EPS) of ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) is expected to decline by -12.26% in the next year.
Is the dividend of ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP sustainable?
The dividend rating of ALGONQUIN PWR & UTILITY - AQNCN 6.469 PERP (AQN-PR-A.CA) is 8 / 10 and the dividend payout ratio is -569.86%.