ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQN - CA0158571053 - Common Stock
6.15 USD
-0.07 (-1.13%)
6.15 USD
0 (0%)
Taking everything into account, AQN scores 3 out of 10 in our fundamental rating. AQN was compared to 26 industry peers in the Multi-Utilities industry. AQN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
With a Return On Assets value of -0.27%, AQN is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
AQN has a worse Return On Equity (-0.80%) than 92.31% of its industry peers.
AQN's Return On Invested Capital of 3.16% is on the low side compared to the rest of the industry. AQN is outperformed by 84.62% 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 3.94%.
The last Return On Invested Capital (3.16%) for AQN is above the 3 year average (2.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROIC | 3.16% |
ROA(3y)-3.11%
ROA(5y)-0.39%
ROE(3y)-11.12%
ROE(5y)-2.83%
ROIC(3y)2.36%
ROIC(5y)2.31%
1.3 Margins
AQN's Operating Margin of 21.55% is in line compared to the rest of the industry. AQN outperforms 57.69% of its industry peers.
AQN's Operating Margin has declined in the last couple of years.
The Gross Margin of AQN (73.94%) is better than 76.92% 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.
Compared to 1 year ago, AQN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that AQN is in the distress zone and has some risk of bankruptcy.
AQN's Altman-Z score of 0.33 is on the low side compared to the rest of the industry. AQN is outperformed by 96.15% 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 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.55
WACC5.77%
2.3 Liquidity
A Current Ratio of 1.23 indicates that AQN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, AQN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that AQN should not have too much problems paying its short term obligations.
AQN's Quick ratio of 1.03 is amongst the best of the industry. AQN outperforms 92.31% 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%.
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
Based on estimates for the next years, AQN will show a small growth in Earnings Per Share. The EPS will grow by 4.09% on average per year.
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
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
The Price/Earnings ratio is 18.64, which indicates a rather expensive current 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 65.38% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (26.51), we can say AQN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.78, AQN is valued correctly.
AQN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AQN is more expensive than 61.54% of the companies in the same industry.
AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
AQN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.18 |
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 4.28%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.62, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
6.15
-0.07 (-1.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change3.25%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.72B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target5.04 (-18.05%)
Short Float %0.91%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-569.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.68%
PT rev (3m)3.34%
EPS NQ rev (1m)-9.38%
EPS NQ rev (3m)-24.82%
EPS NY rev (1m)3.27%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.78 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | 10.14 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)0.33
EY5.37%
EPS(NY)0.37
Fwd EY5.96%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.61
OCFY9.86%
SpS3.11
BVpS6.04
TBVpS4.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.8% | ||
| ROCE | 4% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 3.56% | ||
| 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)2.36%
ROIC(5y)2.31%
ROICexc(3y)2.37%
ROICexc(5y)2.33%
ROICexgc(3y)2.6%
ROICexgc(5y)2.56%
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 | 0.33 |
F-Score4
WACC5.77%
ROIC/WACC0.55
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-0.48%
EPS Next 3Y6.43%
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 Year48.7%
EBIT Next 3Y21.37%
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 FAQ
What is the ChartMill fundamental rating of ALGONQUIN POWER & UTILITIES (AQN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AQN.
What is the valuation status for AQN stock?
ChartMill assigns a valuation rating of 2 / 10 to ALGONQUIN POWER & UTILITIES (AQN). This can be considered as Overvalued.
How profitable is ALGONQUIN POWER & UTILITIES (AQN) stock?
ALGONQUIN POWER & UTILITIES (AQN) has a profitability rating of 3 / 10.
What is the financial health of ALGONQUIN POWER & UTILITIES (AQN) stock?
The financial health rating of ALGONQUIN POWER & UTILITIES (AQN) is 3 / 10.
Is the dividend of ALGONQUIN POWER & UTILITIES sustainable?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN) is 5 / 10 and the dividend payout ratio is -569.86%.