ALGONQUIN POWER & UTILITIES (AQN.CA) Stock Fundamental Analysis
Canada - TSX:AQN - CA0158571053 - Common Stock
7.55 CAD
-0.04 (-0.53%)
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 does not seem to be growing, but still is valued expensively.
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.
In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AQN (-10.09%) is worse than 80.95% of its industry peers.
AQN's Return On Equity of -29.51% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
AQN has a Return On Invested Capital of 2.73%. This is amonst the worse of the industry: AQN underperforms 80.95% 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 3.65%.
The last Return On Invested Capital (2.73%) for AQN is above the 3 year average (2.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROIC | 2.73% |
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
AQN's Operating Margin of 20.38% is on the low side compared to the rest of the industry. AQN is outperformed by 80.95% of its industry peers.
In the last couple of years the Operating Margin of AQN has declined.
Looking at the Gross Margin, with a value of 74.06%, AQN is doing worse than 61.90% of the companies in the same industry.
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 | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for AQN has been reduced compared to a year ago.
2.2 Solvency
AQN has an Altman-Z score of 0.28. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AQN (0.28) is worse than 90.48% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a Debt to Equity ratio of 1.29. This is amongst the best in the industry. AQN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.28 |
ROIC/WACC0.47
WACC5.84%
2.3 Liquidity
AQN has a Current Ratio of 1.09. 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 1.09. This is comparable to the rest of the industry: AQN outperforms 47.62% of its industry peers.
AQN has a Quick Ratio of 1.09. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.90, AQN is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -36.00% 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.
The Revenue for AQN has decreased by -25.45% in the past year. This is quite bad
The Revenue has been growing slightly by 7.38% on average over the past years.
EPS 1Y (TTM)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
3.2 Future
The Earnings Per Share is expected to grow by 6.99% on average over the next years.
Based on estimates for the next years, AQN will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue Next Year-11.06%
Revenue Next 2Y-4.03%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.16 indicates a rather expensive valuation of AQN.
Compared to the rest of the industry, the Price/Earnings ratio of AQN indicates a slightly more expensive valuation: AQN is more expensive than 61.90% of the companies listed in the same industry.
AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 15.00, the valuation of AQN can be described as correct.
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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQN is valued expensively inside the industry as 80.95% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.16, AQN's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than AQN!
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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
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-17.76%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
TSX:AQN (9/18/2025, 7:00:00 PM)
7.55
-0.04 (-0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap5.80B
Analysts52.86
Price Target6.71 (-11.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend0.56
Dividend Growth(5Y)0.06%
DP-17.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.74%
Min EPS beat(2)-0.69%
Max EPS beat(2)42.17%
EPS beat(4)1
Avg EPS beat(4)0.15%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)0.22%
EPS beat(12)4
Avg EPS beat(12)-3.83%
EPS beat(16)5
Avg EPS beat(16)-3.04%
Revenue beat(2)2
Avg Revenue beat(2)3.06%
Min Revenue beat(2)0.82%
Max Revenue beat(2)5.31%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.11%
Revenue beat(12)7
Avg Revenue beat(12)0.07%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)1.6%
PT rev (3m)11.72%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.98%
EPS NY rev (3m)5.98%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.65%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 15 | ||
| P/S | 1.77 | ||
| P/FCF | N/A | ||
| P/OCF | 9.54 | ||
| P/B | 0.9 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)0.44
EY5.83%
EPS(NY)0.5
Fwd EY6.67%
FCF(TTM)-0.76
FCFYN/A
OCF(TTM)0.79
OCFY10.49%
SpS4.27
BVpS8.4
TBVpS5.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROCE | 3.8% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 3.08% | ||
| OM | 20.38% | ||
| PM (TTM) | N/A | ||
| GM | 74.06% | ||
| 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%
ROICexcg growth 3Y4.3%
ROICexcg 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 | 1.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.71 | ||
| Cap/Depr | 209.43% | ||
| Cap/Sales | 36.33% | ||
| Interest Coverage | 1.25 | ||
| Cash Conversion | 49.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.28 |
F-Score4
WACC5.84%
ROIC/WACC0.47
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)-36%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%-55.56%
EPS Next Y-15.38%
EPS Next 2Y-0.64%
EPS Next 3Y5.49%
EPS Next 5Y6.99%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-11.06%
Revenue Next 2Y-4.03%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
EBIT Next 5YN/A
FCF growth 1Y-33.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.88%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%