ALGONQUIN POWER & UTILITIES (AQN.CA) Fundamental Analysis & Valuation
TSX:AQN • CA0158571053
Current stock price
8.66 CAD
-0.02 (-0.23%)
Last:
This AQN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AQN.CA Profitability Analysis
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.
- In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
- AQN has a Return On Assets of 1.20%. This is amongst the best in the industry. AQN outperforms 89.47% of its industry peers.
- Looking at the Return On Equity, with a value of 3.67%, AQN is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.91%, AQN is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 2.59%.
- The 3 year average ROIC (2.36%) for AQN is below the current ROIC(2.91%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.00%, AQN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of AQN has declined.
- With a decent Operating Margin value of 21.49%, AQN is doing good in 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.
- AQN has a worse Gross Margin (73.71%) than 63.16% of its industry peers.
- AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- Compared to 1 year ago, AQN has about the same amount of shares outstanding.
- The number of shares outstanding for AQN has been increased compared to 5 years ago.
- Compared to 1 year ago, AQN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.31, we must say that AQN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AQN (0.31) is worse than 89.47% 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.
- The Debt to Equity ratio of AQN (1.33) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACC0.51
WACC5.67%
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.
- AQN has a Current ratio (1.00) which 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.
- With a Quick ratio value of 0.85, AQN is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
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%.
- The earnings per share for AQN have been decreasing by -12.41% on average. This is quite bad
- The Revenue for AQN has decreased by -20.38% in the past year. This is quite bad
- 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 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
- 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 stable: in the next years the growth will be about the same than in the last years.
4. AQN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.24, which indicates a rather expensive current 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 25.61, AQN is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 17.20, AQN is valued on the expensive side.
- AQN's Price/Forward Earnings is on the same level as the industry average.
- AQN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
- AQN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AQN is more expensive than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.29 |
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)1.76
PEG (5Y)N/A
EPS Next 2Y16.42%
EPS Next 3Y9.59%
5. AQN.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.10%, AQN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.62, AQN has a dividend in line with its industry peers.
- AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
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 Fundamentals: All Metrics, Ratios and Statistics
TSX:AQN (3/25/2026, 7:00:00 PM)
8.66
-0.02 (-0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06 2026-03-06/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners74.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap6.65B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target6.83 (-21.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend0.38
Dividend Growth(5Y)-10.03%
DP124.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31 2026-03-31 (0.065)
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)-3.21%
PT rev (3m)-2.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.2 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 8.15 | ||
| P/B | 1.04 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)0.45
EY5.2%
EPS(NY)0.5
Fwd EY5.81%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)1.06
OCFY12.27%
SpS4.35
BVpS8.3
TBVpS5.82
PEG (NY)1.76
PEG (5Y)N/A
Graham Number9.17
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC5.67%
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%.