ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN - CA0158571053 - Common Stock
8.39 CAD
+0.03 (+0.36%)
Taking everything into account, AQN scores 3 out of 10 in our fundamental rating. AQN was compared to 21 industry peers in the Multi-Utilities industry. AQN may be in some trouble as it scores bad on both profitability and health. 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.
In the past year AQN had a positive cash flow from operations.
In multiple years AQN reported negative net income over the last 5 years.
Each year in the past 5 years AQN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.27%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
The Return On Equity of AQN (-0.80%) is worse than 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.88%, AQN is doing worse than 80.95% 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 3.83%.
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
With a Operating Margin value of 21.55%, AQN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of AQN has declined.
AQN has a Gross Margin of 73.94%. This is in the lower half of the industry: AQN underperforms 61.90% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQN is destroying value.
The number of shares outstanding for AQN has been increased compared to 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.32. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
AQN's Altman-Z score of 0.32 is on the low side compared to the rest of the industry. AQN is outperformed by 90.48% 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.32 |
ROIC/WACC0.5
WACC5.82%
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.
With a Current ratio value of 1.23, AQN perfoms like the industry average, outperforming 47.62% of the companies in the same 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.
AQN's Quick ratio of 1.03 is in line compared to the rest of the industry. AQN outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -29.79% in the last year.
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%.
Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
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-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
Revenue Next 5Y2.3%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.24 indicates a rather expensive valuation of AQN.
Based on the Price/Earnings ratio, AQN is valued a bit more expensive than 71.43% of the companies in the same industry.
AQN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.29, the valuation of AQN can be described as correct.
AQN's Price/Forward Earnings ratio is in line with the industry average.
AQN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
AQN's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AQN is more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.63%, AQN is a good candidate for dividend investing.
AQN's Dividend Yield is rather good when compared to the industry average which is at 5.63. AQN pays more dividend than 90.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
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
AQN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
TSX:AQN (11/21/2025, 7:00:00 PM)
8.39
+0.03 (+0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.44B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target6.71 (-20.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.63% |
Yearly Dividend0.57
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)1.66%
PT rev (3m)1.54%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.06%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 16.29 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 9.84 | ||
| P/B | 0.99 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 12 |
EPS(TTM)0.46
EY5.48%
EPS(NY)0.51
Fwd EY6.14%
FCF(TTM)-0.66
FCFYN/A
OCF(TTM)0.85
OCFY10.17%
SpS4.37
BVpS8.5
TBVpS5.97
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.38
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 | 0.32 |
F-Score4
WACC5.82%
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-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
Revenue Next 5Y2.3%
EBIT growth 1Y-15.87%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
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 2 / 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 -15.04% 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 6 / 10 and the dividend payout ratio is -569.86%.