ALGONQUIN POWER & UTILITIES (AQN.CA) Fundamental Analysis & Valuation

TSX:AQN • CA0158571053

Current stock price

8.5 CAD
-0.12 (-1.39%)
Last:

This AQN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AQN.CA Profitability Analysis

1.1 Basic Checks

  • In the past year AQN was profitable.
  • AQN had a positive operating cash flow in the past year.
  • In multiple years AQN reported negative net income over the last 5 years.
  • AQN had a positive operating cash flow in each of the past 5 years.
AQN.CA Yearly Net Income VS EBIT VS OCF VS FCFAQN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.20%, AQN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
  • AQN has a Return On Equity of 3.67%. This is in the better half of the industry: AQN outperforms 73.68% of its industry peers.
  • With a decent Return On Invested Capital value of 2.91%, AQN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for AQN is in line with the industry average of 2.62%.
  • The last Return On Invested Capital (2.91%) for AQN is above the 3 year average (2.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.2%
ROE 3.67%
ROIC 2.91%
ROA(3y)-2.3%
ROA(5y)-1.32%
ROE(3y)-8.49%
ROE(5y)-5.07%
ROIC(3y)2.36%
ROIC(5y)2.24%
AQN.CA Yearly ROA, ROE, ROICAQN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • AQN has a better Profit Margin (7.00%) than 89.47% of its industry peers.
  • AQN's Profit Margin has declined in the last couple of years.
  • The Operating Margin of AQN (21.49%) is better than 73.68% of its industry peers.
  • In the last couple of years the Operating Margin of AQN has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 73.71%, AQN is doing worse than 63.16% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AQN has remained more or less at the same level.
Industry RankSector Rank
OM 21.49%
PM (TTM) 7%
GM 73.71%
OM growth 3Y5.14%
OM growth 5Y-1.15%
PM growth 3YN/A
PM growth 5Y-31.43%
GM growth 3Y1.65%
GM growth 5Y-0.89%
AQN.CA Yearly Profit, Operating, Gross MarginsAQN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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2

2. AQN.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQN is destroying value.
  • AQN has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AQN has been increased compared to 5 years ago.
  • The debt/assets ratio for AQN is higher compared to a year ago.
AQN.CA Yearly Shares OutstandingAQN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AQN.CA Yearly Total Debt VS Total AssetsAQN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • AQN has an Altman-Z score of 0.31. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.31, AQN is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 1.33 is on the high side and indicates that AQN has dependencies on debt financing.
  • AQN's Debt to Equity ratio of 1.33 is amongst the best of the industry. AQN outperforms 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.31
ROIC/WACC0.51
WACC5.72%
AQN.CA Yearly LT Debt VS Equity VS FCFAQN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.00 indicates that AQN should not have too much problems paying its short term obligations.
  • AQN has a Current ratio (1.00) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.85 indicates that AQN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.85, AQN is doing worse than 63.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.85
AQN.CA Yearly Current Assets VS Current LiabilitesAQN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. AQN.CA Growth Analysis

3.1 Past

  • AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.81%.
  • AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.41% yearly.
  • AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.38%.
  • Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)-10.81%
EPS 3Y-22.17%
EPS 5Y-12.41%
EPS Q2Q%0%
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%

3.2 Future

  • Based on estimates for the next years, AQN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.85% on average per year.
  • The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A

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.
AQN.CA Yearly Revenue VS EstimatesAQN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
AQN.CA Yearly EPS VS EstimatesAQN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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3

4. AQN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.89 indicates a rather expensive valuation of AQN.
  • Based on the Price/Earnings ratio, AQN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.71, AQN is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 17.00 indicates a rather expensive valuation of AQN.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AQN.
  • AQN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.09.
Industry RankSector Rank
PE 18.89
Fwd PE 17
AQN.CA Price Earnings VS Forward Price EarningsAQN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AQN is valued a bit more expensive than 78.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.28
AQN.CA Per share dataAQN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • AQN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y12.22%
EPS Next 3Y10.85%

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4

5. AQN.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.14%, AQN is a good candidate for dividend investing.
  • AQN's Dividend Yield is comparable with the industry average which is at 4.20.
  • Compared to an average S&P500 Dividend Yield of 1.81, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.14%

5.2 History

  • The dividend of AQN decreases each year by -10.03%.
  • AQN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-10.03%
Div Incr Years0
Div Non Decr Years0
AQN.CA Yearly Dividends per shareAQN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • AQN pays out 124.37% of its income as dividend. This is not a sustainable payout ratio.
DP124.37%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
AQN.CA Yearly Income VS Free CF VS DividendAQN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
AQN.CA Dividend Payout.AQN.CA Dividend Payout, showing the Payout Ratio.AQN.CA Dividend Payout.PayoutRetained Earnings

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AQN.CA Fundamentals: All Metrics, Ratios and Statistics

ALGONQUIN POWER & UTILITIES

TSX:AQN (4/21/2026, 7:00:00 PM)

8.5

-0.12 (-1.39%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06
Earnings (Next)05-08
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.53B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target6.7 (-21.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.14%
Yearly Dividend0.38
Dividend Growth(5Y)-10.03%
DP124.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.87%
Min EPS beat(2)34.13%
Max EPS beat(2)35.61%
EPS beat(4)3
Avg EPS beat(4)27.8%
Min EPS beat(4)-0.69%
Max EPS beat(4)42.17%
EPS beat(8)4
Avg EPS beat(8)9.08%
EPS beat(12)5
Avg EPS beat(12)3.81%
EPS beat(16)7
Avg EPS beat(16)1.75%
Revenue beat(2)1
Avg Revenue beat(2)2.8%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)7.44%
Revenue beat(4)3
Avg Revenue beat(4)2.93%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)7.44%
Revenue beat(8)3
Avg Revenue beat(8)-0.96%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)-1.87%
PT rev (3m)-4.03%
EPS NQ rev (1m)1.69%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.03%
Valuation
Industry RankSector Rank
PE 18.89
Fwd PE 17
P/S 1.96
P/FCF N/A
P/OCF 8.03
P/B 1.03
P/tB 1.47
EV/EBITDA 12.28
EPS(TTM)0.45
EY5.29%
EPS(NY)0.5
Fwd EY5.88%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)1.06
OCFY12.45%
SpS4.34
BVpS8.27
TBVpS5.79
PEG (NY)1.78
PEG (5Y)N/A
Graham Number9.15177 (7.67%)
Profitability
Industry RankSector Rank
ROA 1.2%
ROE 3.67%
ROCE 4.04%
ROIC 2.91%
ROICexc 2.92%
ROICexgc 3.27%
OM 21.49%
PM (TTM) 7%
GM 73.71%
FCFM N/A
ROA(3y)-2.3%
ROA(5y)-1.32%
ROE(3y)-8.49%
ROE(5y)-5.07%
ROIC(3y)2.36%
ROIC(5y)2.24%
ROICexc(3y)2.37%
ROICexc(5y)2.25%
ROICexgc(3y)2.62%
ROICexgc(5y)2.48%
ROCE(3y)3.28%
ROCE(5y)3.12%
ROICexgc growth 3Y9.1%
ROICexgc growth 5Y5.22%
ROICexc growth 3Y8.32%
ROICexc growth 5Y5.24%
OM growth 3Y5.14%
OM growth 5Y-1.15%
PM growth 3YN/A
PM growth 5Y-31.43%
GM growth 3Y1.65%
GM growth 5Y-0.89%
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Debt/EBITDA 6.68
Cap/Depr 192.83%
Cap/Sales 31.72%
Interest Coverage 1.68
Cash Conversion 64.28%
Profit Quality N/A
Current Ratio 1
Quick Ratio 0.85
Altman-Z 0.31
F-Score6
WACC5.72%
ROIC/WACC0.51
Cap/Depr(3y)198.53%
Cap/Depr(5y)233.69%
Cap/Sales(3y)37.34%
Cap/Sales(5y)42.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.81%
EPS 3Y-22.17%
EPS 5Y-12.41%
EPS Q2Q%0%
EPS Next Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y-11.94%
EBIT growth 3Y0.76%
EBIT growth 5Y6.49%
EBIT Next Year124.09%
EBIT Next 3Y37.63%
EBIT Next 5YN/A
FCF growth 1Y54.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.23%
OCF growth 3Y-1.39%
OCF growth 5Y3.28%

ALGONQUIN POWER & UTILITIES / AQN.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?

ChartMill assigns a fundamental rating of 4 / 10 to AQN.CA.


Can you provide the valuation status for ALGONQUIN POWER & UTILITIES?

ChartMill assigns a valuation rating of 3 / 10 to ALGONQUIN POWER & UTILITIES (AQN.CA). This can be considered as Overvalued.


Can you provide the profitability details for ALGONQUIN POWER & UTILITIES?

ALGONQUIN POWER & UTILITIES (AQN.CA) has a profitability rating of 6 / 10.


Can you provide the financial health for AQN stock?

The financial health rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 2 / 10.


What is the expected EPS growth for ALGONQUIN POWER & UTILITIES (AQN.CA) stock?

The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN.CA) is expected to grow by 10.62% in the next year.