ALGONQUIN POWER & UTILITIES (AQN.CA) Fundamental Analysis & Valuation

TSX:AQN • CA0158571053

Current stock price

8.6 CAD
-0.06 (-0.69%)
Last:

This AQN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AQN.CA Profitability Analysis

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.
  • In the past 5 years AQN always reported a positive cash flow from operatings.
AQN.CA Yearly Net Income VS EBIT VS OCF VS FCFAQN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • The Return On Assets of AQN (1.20%) is better than 89.47% of its industry peers.
  • AQN has a better Return On Equity (3.67%) than 73.68% of its industry peers.
  • The Return On Invested Capital of AQN (2.91%) is better than 73.68% 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 2.62%.
  • The last Return On Invested Capital (2.91%) for AQN is above the 3 year average (2.36%), which is a sign of increasing profitability.
Industry RankSector 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%
AQN.CA Yearly ROA, ROE, ROICAQN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

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.
  • The Operating Margin of AQN (21.49%) is better than 73.68% of its industry peers.
  • In the last couple of years the Operating Margin of AQN has remained more or less at the same level.
  • AQN has a Gross Margin of 73.71%. This is in the lower half of the industry: AQN underperforms 63.16% of its industry peers.
  • AQN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AQN.CA Yearly Profit, Operating, Gross MarginsAQN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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2

2. AQN.CA Health Analysis

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 remains at a similar level compared to 1 year ago.
  • AQN has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AQN has a worse debt to assets ratio.
AQN.CA Yearly Shares OutstandingAQN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AQN.CA Yearly Total Debt VS Total AssetsAQN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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.
  • With a Altman-Z score value of 0.31, AQN is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
  • 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 RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.31
ROIC/WACC0.51
WACC5.74%
AQN.CA Yearly LT Debt VS Equity VS FCFAQN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.00 indicates that AQN should not have too much problems paying 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.
  • The Quick ratio of AQN (0.85) is worse than 63.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.85
AQN.CA Yearly Current Assets VS Current LiabilitesAQN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. AQN.CA Growth Analysis

3.1 Past

  • The earnings per share for AQN have decreased strongly by -10.81% 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 -12.41% yearly.
  • AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.38%.
  • 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 10.85% on average per year.
  • AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
AQN.CA Yearly Revenue VS EstimatesAQN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
AQN.CA Yearly EPS VS EstimatesAQN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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3

4. AQN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.11, which indicates a rather expensive current valuation of AQN.
  • 84.21% of the companies in the same industry are more expensive 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 26.91.
  • The Price/Forward Earnings ratio is 17.32, which indicates a rather expensive current valuation of AQN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AQN is on the same level as its industry peers.
  • AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.99.
Industry RankSector Rank
PE 19.11
Fwd PE 17.32
AQN.CA Price Earnings VS Forward Price EarningsAQN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 78.95% of the companies in the same industry are cheaper than AQN, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.3
AQN.CA Per share dataAQN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

  • AQN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AQN may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y12.22%
EPS Next 3Y10.85%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AQN.CA Dividend Analysis

5.1 Amount

  • AQN has a Yearly Dividend Yield of 4.20%, which is a nice return.
  • AQN's Dividend Yield is a higher than the industry average which is at 4.21.
  • Compared to an average S&P500 Dividend Yield of 1.82, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.2%

5.2 History

  • The dividend of AQN decreases each year by -10.03%.
  • AQN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.03%
Div Incr Years0
Div Non Decr Years0
AQN.CA Yearly Dividends per shareAQN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • 124.37% of the earnings are spent on dividend by AQN. This is not a sustainable payout ratio.
DP124.37%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
AQN.CA Yearly Income VS Free CF VS DividendAQN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
AQN.CA Dividend Payout.AQN.CA Dividend Payout, showing the Payout Ratio.AQN.CA Dividend Payout.PayoutRetained Earnings

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AQN.CA Fundamentals: All Metrics, Ratios and Statistics

ALGONQUIN POWER & UTILITIES

TSX:AQN (4/27/2026, 7:00:00 PM)

8.6

-0.06 (-0.69%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06
Earnings (Next)05-08
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap6.61B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target6.7 (-22.09%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
Yearly Dividend0.38
Dividend Growth(5Y)-10.03%
DP124.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31
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)-1.87%
PT rev (3m)-4.03%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.03%
Valuation
Industry RankSector Rank
PE 19.11
Fwd PE 17.32
P/S 2
P/FCF N/A
P/OCF 8.18
P/B 1.05
P/tB 1.49
EV/EBITDA 12.3
EPS(TTM)0.45
EY5.23%
EPS(NY)0.5
Fwd EY5.77%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)1.05
OCFY12.22%
SpS4.31
BVpS8.22
TBVpS5.76
PEG (NY)1.8
PEG (5Y)N/A
Graham Number9.12017 (6.05%)
Profitability
Industry RankSector 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 RankSector 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
WACC5.74%
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 Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y-11.94%
EBIT growth 3Y0.76%
EBIT growth 5Y6.49%
EBIT Next Year124.09%
EBIT Next 3Y37.63%
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.


Can you provide the valuation status for ALGONQUIN POWER & UTILITIES?

ChartMill assigns a valuation rating of 3 / 10 to ALGONQUIN POWER & UTILITIES (AQN.CA). This can be considered as Overvalued.


Can you provide the profitability details for ALGONQUIN POWER & UTILITIES?

ALGONQUIN POWER & UTILITIES (AQN.CA) has a profitability rating of 6 / 10.


Can you provide the financial health for AQN stock?

The financial health rating of ALGONQUIN POWER & UTILITIES (AQN.CA) is 2 / 10.


What is the expected EPS growth for ALGONQUIN POWER & UTILITIES (AQN.CA) stock?

The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN.CA) is expected to grow by 10.62% in the next year.