ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQN - CA0158571053 - Common Stock
6.37 USD
-0.02 (-0.31%)
6.3214 USD
-0.05 (-0.76%)
We assign a fundamental rating of 3 out of 10 to AQN. AQN was compared to 26 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
AQN had positive earnings in the past year.
AQN had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -0.27%, AQN is doing worse than 92.31% of the companies in the same industry.
AQN has a Return On Equity of -0.80%. This is amonst the worse of the industry: AQN underperforms 92.31% of its industry peers.
With a Return On Invested Capital value of 3.16%, AQN is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.94%.
The 3 year average ROIC (2.36%) for AQN is below the current ROIC(3.16%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 21.55%, AQN is in line with its industry, outperforming 57.69% of the companies in the same industry.
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.
AQN's Gross Margin has been stable in the last couple of years.
| 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.
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
AQN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that AQN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AQN (0.34) is worse than 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 Debt to Equity ratio of 1.33. This is in the better half of the industry: AQN outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.34 |
ROIC/WACC0.55
WACC5.8%
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 better than 92.31% of its industry peers.
A Quick Ratio of 1.03 indicates that AQN should not have too much problems paying its short term obligations.
The Quick ratio of AQN (1.03) is better than 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.
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.
AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
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
AQN is valuated rather expensively with a Price/Earnings ratio of 19.30.
Based on the Price/Earnings ratio, AQN is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
AQN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
AQN is valuated rather expensively with a Price/Forward Earnings ratio of 17.38.
Compared to the rest of the industry, the Price/Forward 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.
AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.38 |
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 | 12.38 |
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 4.21%, AQN is a good candidate for dividend investing.
AQN's Dividend Yield is a higher than the industry average which is at 4.11.
Compared to an average S&P500 Dividend Yield of 1.92, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
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%
6.37
-0.02 (-0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change0.02%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.89B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target5.04 (-20.88%)
Short Float %0.91%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)0.73%
PT rev (3m)6.28%
EPS NQ rev (1m)-9.38%
EPS NQ rev (3m)-24.82%
EPS NY rev (1m)0%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.38 | ||
| P/S | 2.05 | ||
| P/FCF | N/A | ||
| P/OCF | 10.51 | ||
| P/B | 1.05 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)0.33
EY5.18%
EPS(NY)0.37
Fwd EY5.75%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.61
OCFY9.52%
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 | 0.34 |
F-Score4
WACC5.8%
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 1 / 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 6 / 10 and the dividend payout ratio is -569.86%.