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

TSX:AQN • CA0158571053

Current stock price

8.57 CAD
-0.03 (-0.35%)
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

  • AQN's Return On Assets of 1.20% is amongst the best of the industry. AQN outperforms 89.47% of its industry peers.
  • AQN has a better Return On Equity (3.67%) than 73.68% of its industry peers.
  • AQN's Return On Invested Capital of 2.91% is fine compared to the rest of the industry. AQN outperforms 73.68% of its industry peers.
  • AQN had an Average Return On Invested Capital over the past 3 years of 2.36%. This is in line with the industry average of 2.59%.
  • 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's Profit Margin of 7.00% is amongst the best of the industry. AQN outperforms 89.47% of its industry peers.
  • AQN's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 21.49%, AQN is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
  • AQN's Operating Margin has been stable in the last couple of years.
  • 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.
  • AQN's Gross Margin has been stable in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. AQN.CA Health Analysis

2.1 Basic Checks

  • AQN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, AQN has about the same amount of shares outstanding.
  • Compared to 5 years ago, AQN has more shares outstanding
  • 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

  • Based on the Altman-Z score of 0.30, we must say that AQN is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.30, AQN is not doing good in the industry: 89.47% 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.
  • Looking at the Debt to Equity ratio, with a value of 1.33, AQN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.3
ROIC/WACC0.51
WACC5.66%
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

  • AQN has a Current Ratio of 1.00. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of AQN (1.00) is comparable to the rest of the industry.
  • AQN has a Quick Ratio of 1.00. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AQN has a Quick ratio of 0.85. This is in the lower half of the industry: AQN underperforms 63.16% of its industry peers.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AQN.CA Growth Analysis

3.1 Past

  • The earnings per share for AQN have decreased strongly by -10.81% in the last year.
  • The earnings per share for AQN have been decreasing by -12.41% on average. This is quite bad
  • Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -20.38% in the last year.
  • AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
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 9.59% on average per year.
  • Based on estimates for the next years, AQN will show a small growth in Revenue. The Revenue will grow by 6.69% on average per year.
EPS Next Y10.95%
EPS Next 2Y16.42%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year3.84%
Revenue Next 2Y4.3%
Revenue Next 3Y6.69%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. AQN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.63 indicates a rather expensive valuation of AQN.
  • AQN's Price/Earnings ratio is rather cheap when compared to the industry. AQN is cheaper than 84.21% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. AQN is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.88, the valuation of AQN can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. AQN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.63
Fwd PE 16.88
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 78.95% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.18
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

  • AQN's 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)1.7
PEG (5Y)N/A
EPS Next 2Y16.42%
EPS Next 3Y9.59%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. AQN.CA Dividend Analysis

5.1 Amount

  • AQN has a Yearly Dividend Yield of 4.23%, which is a nice return.
  • Compared to an average industry Dividend Yield of 4.36, AQN has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.23%

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 2Y16.42%
EPS Next 3Y9.59%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

AQN.CA Fundamentals: All Metrics, Ratios and Statistics

ALGONQUIN POWER & UTILITIES

TSX:AQN (3/27/2026, 7:00:00 PM)

8.57

-0.03 (-0.35%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06
Earnings (Next)05-07
Inst Owners74.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap6.58B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target6.7 (-21.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.23%
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)-5.02%
PT rev (3m)-4.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
Industry RankSector Rank
PE 18.63
Fwd PE 16.88
P/S 1.95
P/FCF N/A
P/OCF 8
P/B 1.02
P/tB 1.46
EV/EBITDA 12.18
EPS(TTM)0.46
EY5.37%
EPS(NY)0.51
Fwd EY5.93%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)1.07
OCFY12.5%
SpS4.39
BVpS8.38
TBVpS5.87
PEG (NY)1.7
PEG (5Y)N/A
Graham Number9.31
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 0.3
F-Score6
WACC5.66%
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 Y10.95%
EPS Next 2Y16.42%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%
Revenue Next Year3.84%
Revenue Next 2Y4.3%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
EBIT growth 1Y-11.94%
EBIT growth 3Y0.76%
EBIT growth 5Y6.49%
EBIT Next Year117.32%
EBIT Next 3YN/A
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.


What is the valuation status for AQN stock?

ChartMill assigns a valuation rating of 3 / 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 6 / 10.


What is the financial health of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?

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


Is the dividend of ALGONQUIN POWER & UTILITIES sustainable?

The dividend rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 4 / 10 and the dividend payout ratio is 124.37%.