ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - NYSE:AQN - CA0158571053 - Common Stock
5.725 USD
-0.03 (-0.43%)
Overall AQN gets a fundamental rating of 3 out of 10. We evaluated AQN against 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.
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.
AQN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AQN's Return On Assets of -10.09% is on the low side compared to the rest of the industry. AQN is outperformed by 92.31% of its industry peers.
The Return On Equity of AQN (-29.51%) is worse than 92.31% of its industry peers.
AQN has a worse Return On Invested Capital (3.00%) than 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 3.84%.
The 3 year average ROIC (2.36%) for AQN is below the current ROIC(3.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROIC | 3% |
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 20.38%, 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 (74.06%) 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 | 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.
Compared to 1 year ago, AQN has more shares outstanding
AQN has more shares outstanding than it did 5 years ago.
AQN has a better debt/assets ratio than last year.
2.2 Solvency
AQN has an Altman-Z score of 0.29. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.29, AQN is doing worse than 96.15% of the companies in the same industry.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a better Debt to Equity ratio (1.29) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.29 |
ROIC/WACC0.52
WACC5.73%
2.3 Liquidity
A Current Ratio of 1.09 indicates that AQN should not have too much problems paying its short term obligations.
AQN has a Current ratio of 1.09. This is amongst the best in the industry. AQN outperforms 92.31% of its industry peers.
A Quick Ratio of 0.90 indicates that AQN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, AQN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.00%.
The earnings per share for AQN have been decreasing by -10.38% on average. This is quite bad
Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -25.45% in the last year.
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
AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
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 17.89.
AQN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (27.00), we can say AQN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.68, which indicates a correct valuation of AQN.
AQN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.87. AQN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.89 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AQN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 6.67%, which is a nice return.
AQN's Dividend Yield is rather good when compared to the industry average which is at 3.69. AQN pays more dividend than 92.31% of the companies in the same industry.
AQN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-17.76%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
NYSE:AQN (10/29/2025, 10:12:06 AM)
5.725
-0.03 (-0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner Change-0.03%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.40B
Revenue(TTM)2.38B
Net Income(TTM)-1381809000
Analysts68.33
Price Target4.74 (-17.21%)
Short Float %1.54%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Yearly Dividend0.41
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)-2.77%
PT rev (3m)-1.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.89 | ||
| Fwd PE | 15.68 | ||
| P/S | 1.85 | ||
| P/FCF | N/A | ||
| P/OCF | 9.97 | ||
| P/B | 0.94 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)0.32
EY5.59%
EPS(NY)0.37
Fwd EY6.38%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)0.57
OCFY10.03%
SpS3.1
BVpS6.1
TBVpS4.29
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.09% | ||
| ROE | -29.51% | ||
| ROCE | 3.8% | ||
| ROIC | 3% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.38% | ||
| 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)2.36%
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 | 1.29 | ||
| 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 | 0.29 |
F-Score4
WACC5.73%
ROIC/WACC0.52
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-14.99%
EPS Next 2Y-0.67%
EPS Next 3Y5.62%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-25.45%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-11.83%
Revenue Next Year-10.65%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.05%
Revenue Next 5Y2.3%
EBIT growth 1Y-22.44%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
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%
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 of ALGONQUIN POWER & UTILITIES (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 earnings growth outlook for ALGONQUIN POWER & UTILITIES?
The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN) is expected to decline by -14.99% in the next year.
How sustainable is the dividend of ALGONQUIN POWER & UTILITIES (AQN) stock?
The dividend rating of ALGONQUIN POWER & UTILITIES (AQN) is 6 / 10 and the dividend payout ratio is -17.76%.