ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN - CA0158571053 - Common Stock
8.64 CAD
+0.24 (+2.86%)
Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 21 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN have multiple concerns. AQN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AQN had positive earnings in the past year.
AQN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AQN reported negative net income in multiple 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 (-0.27%) than 80.95% of its industry peers.
With a Return On Equity value of -0.80%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
The Return On Invested Capital of AQN (2.88%) is worse than 80.95% 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 3.74%.
The last Return On Invested Capital (2.88%) for AQN 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
The Operating Margin of AQN (21.55%) is worse than 80.95% of its industry peers.
In the last couple of years the Operating Margin of AQN has declined.
The Gross Margin of AQN (73.94%) is worse than 61.90% of its industry peers.
AQN'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQN is destroying value.
Compared to 1 year ago, AQN has more shares outstanding
AQN has more shares outstanding than it did 5 years ago.
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.33. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AQN (0.33) is worse than 76.19% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a Debt to Equity ratio of 1.33. This is amongst the best in the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.5
WACC5.81%
2.3 Liquidity
A Current Ratio of 1.23 indicates that AQN should not have too much problems paying its short term obligations.
AQN has a Current ratio of 1.23. This is comparable to the rest of the industry: AQN outperforms 47.62% of its industry peers.
AQN has a Quick Ratio of 1.03. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
AQN has a Quick ratio (1.03) which 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 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.38% yearly.
AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.92%.
AQN 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.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-12.26%
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 18.78 indicates a rather expensive valuation of AQN.
Based on the Price/Earnings ratio, AQN is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
AQN is valuated rather expensively with a Price/Forward Earnings ratio of 17.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 66.67% of the companies listed in the same industry.
AQN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQN is valued more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.51%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.90, AQN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of AQN has a limited annual growth rate of 0.06%.
AQN has paid a dividend for at least 10 years, which is 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.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
TSX:AQN (12/18/2025, 7:00:00 PM)
8.64
+0.24 (+2.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.64B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target6.98 (-19.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend0.56
Dividend Growth(5Y)0.06%
DP-569.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.46%
Min EPS beat(2)-0.69%
Max EPS beat(2)35.61%
EPS beat(4)2
Avg EPS beat(4)12.84%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)4
Avg EPS beat(8)5.61%
EPS beat(12)5
Avg EPS beat(12)1.98%
EPS beat(16)6
Avg EPS beat(16)-0.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)0.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.75%
Revenue beat(12)6
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)4.05%
PT rev (3m)3.99%
EPS NQ rev (1m)-18.84%
EPS NQ rev (3m)-17.05%
EPS NY rev (1m)3.27%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)-2.73%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 17.16 | ||
| P/S | 2.02 | ||
| P/FCF | N/A | ||
| P/OCF | 10.33 | ||
| P/B | 1.04 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)0.46
EY5.32%
EPS(NY)0.5
Fwd EY5.83%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.84
OCFY9.68%
SpS4.29
BVpS8.34
TBVpS5.85
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROCE | 4% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 3.25% | ||
| OM | 21.55% | ||
| PM (TTM) | N/A | ||
| GM | 73.94% | ||
| FCFM | N/A |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.15%
ROIC(5y)2.11%
ROICexc(3y)2.16%
ROICexc(5y)2.12%
ROICexgc(3y)2.37%
ROICexgc(5y)2.33%
ROCE(3y)2.99%
ROCE(5y)2.93%
ROICexgc growth 3Y4.3%
ROICexgc 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-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.76 | ||
| Cap/Depr | 208.02% | ||
| Cap/Sales | 34.55% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 51.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.33 |
F-Score4
WACC5.81%
ROIC/WACC0.5
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)-29.79%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%12.5%
EPS Next Y-12.26%
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-9.53%
Revenue Next 2Y-3.01%
Revenue Next 3Y-0.37%
Revenue Next 5Y2.3%
EBIT growth 1Y-15.87%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year46.43%
EBIT Next 3Y20.94%
EBIT Next 5YN/A
FCF growth 1Y-47.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-27.45%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%
ALGONQUIN POWER & UTILITIES / AQN.CA FAQ
What is the ChartMill fundamental rating of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AQN.CA.
What is the valuation status of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ChartMill assigns a valuation rating of 1 / 10 to ALGONQUIN POWER & UTILITIES (AQN.CA). This can be considered as Overvalued.
How profitable is ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
ALGONQUIN POWER & UTILITIES (AQN.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for ALGONQUIN POWER & UTILITIES?
The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN.CA) is expected to decline by -12.26% in the next year.
How sustainable is the dividend of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 5 / 10 and the dividend payout ratio is -569.86%.