ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN - CA0158571053 - Common Stock
9.06 CAD
+0.11 (+1.23%)
We assign a fundamental rating of 3 out of 10 to AQN. AQN was compared to 19 industry peers in the Multi-Utilities industry. AQN may be in some trouble as it scores bad on both profitability and health. AQN does not seem to be growing, but still is valued expensively.
1. Profitability
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.
1.2 Ratios
- With a Return On Assets value of -0.27%, AQN is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -0.80%, AQN is doing worse than 78.95% of the companies in the same industry.
- AQN has a Return On Invested Capital of 2.88%. This is in the lower half of the industry: AQN underperforms 78.95% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.73%.
- 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
- Looking at the Operating Margin, with a value of 21.55%, AQN is doing worse than 78.95% of the companies in the same industry.
- AQN's Operating Margin has declined in the last couple of years.
- AQN has a worse Gross Margin (73.94%) than 63.16% of its industry peers.
- In the last couple of years the Gross Margin of AQN 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 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
- Based on the Altman-Z score of 0.34, we must say that AQN is in the distress zone and has some risk of bankruptcy.
- AQN's Altman-Z score of 0.34 is on the low side compared to the rest of the industry. AQN is outperformed by 78.95% of its industry peers.
- AQN has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
- AQN has a better Debt to Equity ratio (1.33) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.34 |
ROIC/WACC0.48
WACC5.97%
2.3 Liquidity
- AQN has a Current Ratio of 1.23. 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 Current ratio (1.23) which is comparable to the rest of the industry.
- 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.
- Looking at the Quick ratio, with a value of 1.03, AQN is in line with its industry, outperforming 47.37% of the companies in the same 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.
- Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -23.92% in the last year.
- 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
- AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
- AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
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
- 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 19.70 indicates a rather expensive valuation of AQN.
- AQN's Price/Earnings ratio is a bit more expensive when compared to the industry. AQN is more expensive than 63.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, AQN is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 17.80, the valuation of AQN can be described as rather expensive.
- 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 63.16% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AQN to the average of the S&P500 Index (24.29), we can say AQN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 17.8 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.46 |
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 is a good candidate for dividend investing.
- AQN's Dividend Yield is rather good when compared to the industry average which is at 4.80. AQN pays more dividend than 89.47% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
- The dividend of AQN has a limited annual growth rate of 0.06%.
- AQN has been paying a dividend for at least 10 years, so it has 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.
- The dividend of AQN 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%
TSX:AQN (1/19/2026, 7:00:00 PM)
9.06
+0.11 (+1.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)03-05 2026-03-05/amc
Inst Owners74.14%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.96B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target6.98 (-22.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
Yearly Dividend0.56
Dividend Growth(5Y)0.06%
DP-569.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
PT rev (3m)5.77%
EPS NQ rev (1m)-9.38%
EPS NQ rev (3m)-24.82%
EPS NY rev (1m)0%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 17.8 | ||
| P/S | 2.1 | ||
| P/FCF | N/A | ||
| P/OCF | 10.76 | ||
| P/B | 1.08 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)0.46
EY5.08%
EPS(NY)0.51
Fwd EY5.62%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.84
OCFY9.29%
SpS4.32
BVpS8.4
TBVpS5.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.32
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 | 0.34 |
F-Score4
WACC5.97%
ROIC/WACC0.48
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-0.48%
EPS Next 3Y6.43%
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 Year48.7%
EBIT Next 3Y21.37%
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 for AQN 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 financial health of ALGONQUIN POWER & UTILITIES (AQN.CA) stock?
The financial health rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 3 / 10.
Is the dividend of ALGONQUIN POWER & UTILITIES sustainable?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 6 / 10 and the dividend payout ratio is -569.86%.