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
+0.06 (+0.24%)
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 has a expensive valuation and it also scores bad on growth. Finally AQN-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year AQN-PR-A was profitable.
- In the past year AQN-PR-A had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: AQN-PR-A reported negative net income in multiple years.
- In the past 5 years AQN-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
- AQN-PR-A's Return On Assets of -0.27% is on the low side compared to the rest of the industry. AQN-PR-A is outperformed by 84.21% of its industry peers.
- The Return On Equity of AQN-PR-A (-0.80%) is worse 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.
- Measured over the past 3 years, the Average Return On Invested Capital for AQN-PR-A 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
- With a Operating Margin value of 21.55%, AQN-PR-A is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
- AQN-PR-A's Operating Margin has declined in the last couple of years.
- 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.
- 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- AQN-PR-A has a better debt/assets ratio than last year.
2.2 Solvency
- AQN-PR-A has an Altman-Z score of 0.94. This is a bad value and indicates that AQN-PR-A is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AQN-PR-A (0.94) is better than 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 | 0.94 |
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.
- The Current ratio of AQN-PR-A (1.23) is comparable to the rest of the industry.
- 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
- The earnings per share for AQN-PR-A have decreased strongly by -29.79% in the last year.
- The earnings per share for AQN-PR-A have been decreasing by -10.38% on average. This is quite bad
- AQN-PR-A shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.92%.
- AQN-PR-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
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.
- 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
- The Price/Earnings ratio is 55.56, which means the current valuation is very expensive for AQN-PR-A.
- Compared to the rest of the industry, the Price/Earnings ratio of AQN-PR-A indicates a rather expensive valuation: AQN-PR-A more expensive than 84.21% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. AQN-PR-A is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 50.29, the valuation of AQN-PR-A can be described as expensive.
- Based on the Price/Forward Earnings ratio, AQN-PR-A is valued a bit more expensive than 73.68% of the companies in the same industry.
- AQN-PR-A is valuated expensively when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.56 | ||
| Fwd PE | 50.29 |
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 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.5 |
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
- AQN-PR-A has a Yearly Dividend Yield of 6.58%, which is a nice return.
- AQN-PR-A's Dividend Yield is a higher than the industry average which is at 5.19.
- AQN-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
- The dividend of AQN-PR-A has a limited annual growth rate of 0.06%.
- AQN-PR-A has been paying a dividend for at least 10 years, so it has 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.
- AQN-PR-A's earnings are growing more than its dividend. This makes the dividend growth 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 7 / 10 and the dividend payout ratio is -569.86%.