ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:AQN • CA0158571053
8.94 CAD
+0.22 (+2.52%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, AQN scores 3 out of 10 in our fundamental rating. AQN was compared to 19 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- AQN had a positive operating cash flow in the past year.
- In multiple years AQN reported negative net income over the last 5 years.
- In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
- AQN has a worse Return On Assets (-0.27%) than 78.95% of its industry peers.
- AQN's Return On Equity of -0.80% 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 Return On Invested Capital of 2.88%. This is in the lower half of the industry: AQN underperforms 78.95% of its industry peers.
- AQN had an Average Return On Invested Capital over the past 3 years of 2.15%. This is in line with the industry average of 3.73%.
- The 3 year average ROIC (2.15%) for AQN is below the current ROIC(2.88%), indicating increased profibility in the last year.
| 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
- The Operating Margin of AQN (21.55%) is worse than 78.95% of its industry peers.
- 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 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
- 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 more shares outstanding
- The number of shares outstanding for AQN has been increased compared to 5 years ago.
- Compared to 1 year ago, AQN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.35, we must say that AQN is in the distress zone and has some risk of bankruptcy.
- AQN has a worse Altman-Z score (0.35) than 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 | 0.35 |
ROIC/WACC0.48
WACC5.96%
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 of 1.23. This is comparable to the rest of the industry: AQN outperforms 47.37% of its industry peers.
- A Quick Ratio of 1.03 indicates that AQN should not have too much problems paying 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.
- The Revenue has been growing slightly by 7.38% on average over the past years.
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
- The Earnings Per Share is expected to grow by 4.09% on average over the next years.
- The Revenue is expected to grow by 2.30% on average over the next years.
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.87 indicates a rather expensive valuation of AQN.
- 73.68% of the companies in the same industry are cheaper than AQN, based on the Price/Earnings ratio.
- AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 18.04, the valuation of AQN can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AQN is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of AQN to the average of the S&P500 Index (25.57), we can say AQN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 18.04 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.57 |
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 4.17%, AQN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.41, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
- The dividend of AQN has a limited annual growth rate of 0.06%.
- AQN has paid a dividend for at least 10 years, which is 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.
- AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
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 5 / 10 and the dividend payout ratio is -569.86%.