ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AQN - CA0158571053 - Common Stock
8.12 CAD
-0.04 (-0.49%)
We assign a fundamental rating of 3 out of 10 to AQN. 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AQN was profitable.
In the past year AQN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AQN reported negative net income in multiple years.
AQN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQN has a worse Return On Assets (-0.27%) than 80.00% 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 80.00% of its industry peers.
The Return On Invested Capital of AQN (2.88%) is worse than 80.00% 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 3.74%.
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
With a Operating Margin value of 21.55%, AQN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
AQN's Operating Margin has declined in the last couple of years.
AQN has a Gross Margin of 73.94%. This is in the lower half of the industry: AQN underperforms 60.00% 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.
AQN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AQN has been increased compared to 5 years ago.
The debt/assets ratio for AQN has been reduced compared to a year ago.
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.
AQN has a Altman-Z score of 0.31. This is amonst the worse of the industry: AQN underperforms 90.00% 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.
AQN has a Debt to Equity ratio of 1.33. This is amongst the best in the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACC0.5
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.23 indicates that AQN should not have too much problems paying its short term obligations.
The Current ratio of AQN (1.23) 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 50.00% of the companies in the same industry.
| 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.
Measured over the past years, AQN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.38% on average per year.
Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -23.92% in the last year.
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
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-0.67%
EPS Next 3Y6.57%
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.
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
AQN is valuated rather expensively with a Price/Earnings ratio of 17.65.
Compared to the rest of the industry, the Price/Earnings ratio of AQN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (26.49), we can say AQN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.96, which indicates a correct valuation of AQN.
60.00% of the companies in the same industry are cheaper than AQN, based on the Price/Forward Earnings ratio.
AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQN indicates a rather expensive valuation: AQN more expensive than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.54, AQN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-569.86%
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
TSX:AQN (12/5/2025, 7:00:00 PM)
8.12
-0.04 (-0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.24B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target6.98 (-14.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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)4.05%
PT rev (3m)3.99%
EPS NQ rev (1m)-18.84%
EPS NQ rev (3m)-17.05%
EPS NY rev (1m)3.27%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)-2.73%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.96 | ||
| P/S | 1.87 | ||
| P/FCF | N/A | ||
| P/OCF | 9.61 | ||
| P/B | 0.96 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)0.46
EY5.67%
EPS(NY)0.51
Fwd EY6.27%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.84
OCFY10.41%
SpS4.33
BVpS8.42
TBVpS5.91
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.34
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 | 0.31 |
F-Score4
WACC5.75%
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-12.26%
EPS Next 2Y-0.67%
EPS Next 3Y6.57%
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 Year46.43%
EBIT Next 3Y20.94%
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 -12.26% 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 5 / 10 and the dividend payout ratio is -569.86%.