ALGONQUIN POWER & UTILITIES (AQN)
CA0158571053 - Common Stock
We assign a fundamental rating of 3 out of 10 to AQN. AQN was compared to 25 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AQN have multiple concerns. 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.
AQN had a positive operating cash flow in the past year.
AQN had positive earnings in 4 of the past 5 years.
In the past 5 years AQN always reported a positive cash flow from operatings.
1.2 Ratios
AQN has a Return On Assets of -6.24%. This is amonst the worse of the industry: AQN underperforms 92.00% of its industry peers.
AQN has a Return On Equity of -22.90%. This is amonst the worse of the industry: AQN underperforms 92.00% of its industry peers.
AQN's Return On Invested Capital of 2.91% is on the low side compared to the rest of the industry. AQN is outperformed by 84.00% of its industry peers.
AQN had an Average Return On Invested Capital over the past 3 years of 2.30%. This is in line with the industry average of 3.68%.
The last Return On Invested Capital (2.91%) for AQN is above the 3 year average (2.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.24% | ||
| ROE | -22.9% | ||
| ROIC | 2.91% |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.3%
ROIC(5y)2.45%
1.3 Margins
AQN's Profit Margin has declined in the last couple of years.
AQN's Operating Margin of 19.49% is on the low side compared to the rest of the industry. AQN is outperformed by 64.00% of its industry peers.
AQN's Operating Margin has declined in the last couple of years.
AQN has a Gross Margin of 74.55%. This is in the better half of the industry: AQN outperforms 80.00% of its industry peers.
AQN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.49% | ||
| PM (TTM) | N/A | ||
| GM | 74.55% |
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
2. Health
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 has been increased compared to 1 year ago.
Compared to 5 years ago, AQN has more shares outstanding
Compared to 1 year ago, AQN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that AQN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.23, AQN is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.49 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a Debt to Equity ratio (1.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.23 |
ROIC/WACC0.59
WACC4.93%
2.3 Liquidity
A Current Ratio of 0.92 indicates that AQN may have some problems paying its short term obligations.
With a decent Current ratio value of 0.92, AQN is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that AQN may have some problems paying its short term obligations.
The Quick ratio of AQN (0.77) is better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.97%.
AQN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.95% yearly.
Looking at the last year, AQN shows a quite strong growth in Revenue. The Revenue has grown by 13.32% in the last year.
The Revenue has been growing by 10.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%
3.2 Future
AQN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.45% yearly.
Based on estimates for the next years, AQN will show a decrease in Revenue. The Revenue will decrease by -0.28% on average per year.
EPS Next Y-24.64%
EPS Next 2Y-24.18%
EPS Next 3Y-12.49%
EPS Next 5Y-4.45%
Revenue Next Year-8.11%
Revenue Next 2Y-7.94%
Revenue Next 3Y-4.89%
Revenue Next 5Y-0.28%
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 stable.
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 9.66 indicates a reasonable valuation of AQN.
Compared to the rest of the industry, the Price/Earnings ratio of AQN indicates a somewhat cheap valuation: AQN is cheaper than 72.00% of the companies listed in the same industry.
AQN is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.19, AQN is valued correctly.
AQN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.69. AQN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 15.19 |
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 | 9.81 |
4.3 Compensation for Growth
AQN's earnings are expected to decrease with -12.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.18%
EPS Next 3Y-12.49%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 5.72%, which is a nice return.
AQN's Dividend Yield is rather good when compared to the industry average which is at 3.86. AQN pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
5.2 History
The dividend of AQN has a limited annual growth rate of 4.94%.
AQN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.94%
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.
DP-28.84%
EPS Next 2Y-24.18%
EPS Next 3Y-12.49%
ALGONQUIN POWER & UTILITIES
NYSE:AQN (1/3/2025, 8:20:16 PM)
After market: 4.7083 +0.17 (+3.71%)4.54
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change8.49%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap3.48B
Analysts67.69
Price Target4.08 (-10.13%)
Short Float %1.99%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Dividend Growth(5Y)4.94%
DP-28.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.86%
Min EPS beat(2)-15.13%
Max EPS beat(2)13.41%
EPS beat(4)2
Avg EPS beat(4)-1.62%
Min EPS beat(4)-15.13%
Max EPS beat(4)13.41%
EPS beat(8)3
Avg EPS beat(8)-3.44%
EPS beat(12)4
Avg EPS beat(12)-5.16%
EPS beat(16)5
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.17%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)10
Avg Revenue beat(16)2.91%
PT rev (1m)-5.32%
PT rev (3m)-11.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 15.19 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | 5.49 | ||
| P/B | 0.72 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)0.47
EY10.35%
EPS(NY)0.3
Fwd EY6.59%
FCF(TTM)-0.39
FCFYN/A
OCF(TTM)0.83
OCFY18.21%
SpS4.09
BVpS6.31
TBVpS4.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.24% | ||
| ROE | -22.9% | ||
| ROCE | 3.69% | ||
| ROIC | 2.91% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 3.19% | ||
| OM | 19.49% | ||
| PM (TTM) | N/A | ||
| GM | 74.55% | ||
| FCFM | N/A |
ROA(3y)0.13%
ROA(5y)2.2%
ROE(3y)0.18%
ROE(5y)5.78%
ROIC(3y)2.3%
ROIC(5y)2.45%
ROICexc(3y)2.31%
ROICexc(5y)2.46%
ROICexgc(3y)2.53%
ROICexgc(5y)2.73%
ROCE(3y)2.91%
ROCE(5y)3.1%
ROICexcg growth 3Y-2.44%
ROICexcg growth 5Y-7.49%
ROICexc growth 3Y-1.59%
ROICexc growth 5Y-6.9%
OM growth 3Y-6.79%
OM growth 5Y-4.27%
PM growth 3Y-74.64%
PM growth 5Y-41.23%
GM growth 3Y-1.6%
GM growth 5Y0.32%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.49 | ||
| Cap/Depr | 186.56% | ||
| Cap/Sales | 29.67% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 57.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.23 |
F-Score6
WACC4.93%
ROIC/WACC0.59
Cap/Depr(3y)264.2%
Cap/Depr(5y)249.46%
Cap/Sales(3y)45.42%
Cap/Sales(5y)43.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.97%
EPS 3Y-6.69%
EPS 5Y-4.95%
EPS Q2Q%-27.27%
EPS Next Y-24.64%
EPS Next 2Y-24.18%
EPS Next 3Y-12.49%
EPS Next 5Y-4.45%
Revenue 1Y (TTM)13.32%
Revenue growth 3Y17.17%
Revenue growth 5Y10.35%
Sales Q2Q%-8.24%
Revenue Next Year-8.11%
Revenue Next 2Y-7.94%
Revenue Next 3Y-4.89%
Revenue Next 5Y-0.28%
EBIT growth 1Y21.37%
EBIT growth 3Y9.22%
EBIT growth 5Y5.64%
EBIT Next Year55.11%
EBIT Next 3Y12.57%
EBIT Next 5Y17.41%
FCF growth 1Y55.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.47%
OCF growth 3Y7.52%
OCF growth 5Y3.44%