ALGONQUIN POWER & UTILITIES (AQN) Fundamental Analysis & Valuation

NYSE:AQN • CA0158571053

Current stock price

6.445 USD
-0.1 (-1.6%)
Last:

This AQN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. AQN Profitability Analysis

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.
  • AQN had a positive operating cash flow in each of the past 5 years.
AQN Yearly Net Income VS EBIT VS OCF VS FCFAQN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.20%, AQN is doing worse than 88.46% of the companies in the same industry.
  • AQN has a worse Return On Equity (3.67%) than 92.31% of its industry peers.
  • With a Return On Invested Capital value of 3.19%, AQN is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
  • AQN had an Average Return On Invested Capital over the past 3 years of 2.59%. This is in line with the industry average of 3.74%.
  • The last Return On Invested Capital (3.19%) for AQN is above the 3 year average (2.59%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.2%
ROE 3.67%
ROIC 3.19%
ROA(3y)-2.3%
ROA(5y)-1.32%
ROE(3y)-8.49%
ROE(5y)-5.07%
ROIC(3y)2.59%
ROIC(5y)2.46%
AQN Yearly ROA, ROE, ROICAQN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • AQN has a Profit Margin of 7.00%. This is amonst the worse of the industry: AQN underperforms 88.46% of its industry peers.
  • AQN's Profit Margin has declined in the last couple of years.
  • AQN's Operating Margin of 21.49% is in line compared to the rest of the industry. AQN outperforms 57.69% of its industry peers.
  • AQN's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of AQN (73.71%) is better than 76.92% of its industry peers.
  • AQN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.49%
PM (TTM) 7%
GM 73.71%
OM growth 3Y5.14%
OM growth 5Y-1.15%
PM growth 3YN/A
PM growth 5Y-31.43%
GM growth 3Y1.65%
GM growth 5Y-0.89%
AQN Yearly Profit, Operating, Gross MarginsAQN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. AQN Health Analysis

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 remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for AQN has been increased compared to 5 years ago.
  • AQN has a worse debt/assets ratio than last year.
AQN Yearly Shares OutstandingAQN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AQN Yearly Total Debt VS Total AssetsAQN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • AQN has an Altman-Z score of 0.32. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
  • AQN has a worse Altman-Z score (0.32) 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.
  • Looking at the Debt to Equity ratio, with a value of 1.33, AQN is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.32
ROIC/WACC0.57
WACC5.59%
AQN Yearly LT Debt VS Equity VS FCFAQN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • AQN has a Current Ratio of 1.00. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
  • With an excellent Current ratio value of 1.00, AQN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
  • AQN has a Quick Ratio of 1.00. This is a bad value and indicates that AQN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AQN has a Quick ratio of 0.85. This is amongst the best in the industry. AQN outperforms 80.77% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.85
AQN Yearly Current Assets VS Current LiabilitesAQN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AQN Growth Analysis

3.1 Past

  • AQN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.81%.
  • The earnings per share for AQN have been decreasing by -12.41% on average. This is quite bad
  • AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.38%.
  • Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)-10.81%
EPS 3Y-22.17%
EPS 5Y-12.41%
EPS Q2Q%0%
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
  • Based on estimates for the next years, AQN will show a small growth in Revenue. The Revenue will grow by 6.69% on average per year.
EPS Next Y10.95%
EPS Next 2Y16.42%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year3.84%
Revenue Next 2Y4.3%
Revenue Next 3Y6.69%
Revenue Next 5YN/A

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 stable.
AQN Yearly Revenue VS EstimatesAQN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
AQN Yearly EPS VS EstimatesAQN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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2

4. AQN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.53, which indicates a rather expensive current valuation of AQN.
  • AQN's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.11. AQN is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 17.60, AQN is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AQN.
  • AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 19.53
Fwd PE 17.6
AQN Price Earnings VS Forward Price EarningsAQN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AQN's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.49
AQN Per share dataAQN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • AQN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y16.42%
EPS Next 3Y9.59%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AQN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.24%, AQN is a good candidate for dividend investing.
  • AQN's Dividend Yield is a higher than the industry average which is at 4.06.
  • Compared to an average S&P500 Dividend Yield of 1.91, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.24%

5.2 History

  • The dividend of AQN decreases each year by -10.03%.
  • AQN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.03%
Div Incr Years0
Div Non Decr Years0
AQN Yearly Dividends per shareAQN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 124.37% of the earnings are spent on dividend by AQN. This is not a sustainable payout ratio.
DP124.37%
EPS Next 2Y16.42%
EPS Next 3Y9.59%
AQN Yearly Income VS Free CF VS DividendAQN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
AQN Dividend Payout.AQN Dividend Payout, showing the Payout Ratio.AQN Dividend Payout.PayoutRetained Earnings

More info and screens

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AQN Fundamentals: All Metrics, Ratios and Statistics

ALGONQUIN POWER & UTILITIES

NYSE:AQN (3/18/2026, 1:16:12 PM)

6.445

-0.1 (-1.6%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06
Earnings (Next)05-07
Inst Owners74.49%
Inst Owner Change3.29%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap4.95B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target4.99 (-22.58%)
Short Float %1.04%
Short Ratio1.63
Dividend
Industry RankSector Rank
Dividend Yield 4.24%
Yearly Dividend0.28
Dividend Growth(5Y)-10.03%
DP124.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.87%
Min EPS beat(2)34.13%
Max EPS beat(2)35.61%
EPS beat(4)3
Avg EPS beat(4)27.8%
Min EPS beat(4)-0.69%
Max EPS beat(4)42.17%
EPS beat(8)4
Avg EPS beat(8)9.08%
EPS beat(12)5
Avg EPS beat(12)3.81%
EPS beat(16)7
Avg EPS beat(16)1.75%
Revenue beat(2)1
Avg Revenue beat(2)2.8%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)7.44%
Revenue beat(4)3
Avg Revenue beat(4)2.93%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)7.44%
Revenue beat(8)3
Avg Revenue beat(8)-0.96%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)-3.23%
PT rev (3m)-0.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.44%
Valuation
Industry RankSector Rank
PE 19.53
Fwd PE 17.6
P/S 2.03
P/FCF N/A
P/OCF 8.34
P/B 1.07
P/tB 1.52
EV/EBITDA 12.49
EPS(TTM)0.33
EY5.12%
EPS(NY)0.37
Fwd EY5.68%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.77
OCFY11.99%
SpS3.17
BVpS6.04
TBVpS4.23
PEG (NY)1.78
PEG (5Y)N/A
Graham Number6.7
Profitability
Industry RankSector Rank
ROA 1.2%
ROE 3.67%
ROCE 4.04%
ROIC 3.19%
ROICexc 3.2%
ROICexgc 3.59%
OM 21.49%
PM (TTM) 7%
GM 73.71%
FCFM N/A
ROA(3y)-2.3%
ROA(5y)-1.32%
ROE(3y)-8.49%
ROE(5y)-5.07%
ROIC(3y)2.59%
ROIC(5y)2.46%
ROICexc(3y)2.6%
ROICexc(5y)2.47%
ROICexgc(3y)2.87%
ROICexgc(5y)2.72%
ROCE(3y)3.28%
ROCE(5y)3.12%
ROICexgc growth 3Y9.1%
ROICexgc growth 5Y5.22%
ROICexc growth 3Y8.32%
ROICexc growth 5Y5.24%
OM growth 3Y5.14%
OM growth 5Y-1.15%
PM growth 3YN/A
PM growth 5Y-31.43%
GM growth 3Y1.65%
GM growth 5Y-0.89%
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Debt/EBITDA 6.68
Cap/Depr 192.83%
Cap/Sales 31.72%
Interest Coverage 1.68
Cash Conversion 64.28%
Profit Quality N/A
Current Ratio 1
Quick Ratio 0.85
Altman-Z 0.32
F-Score6
WACC5.59%
ROIC/WACC0.57
Cap/Depr(3y)198.53%
Cap/Depr(5y)233.69%
Cap/Sales(3y)37.34%
Cap/Sales(5y)42.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.81%
EPS 3Y-22.17%
EPS 5Y-12.41%
EPS Q2Q%0%
EPS Next Y10.95%
EPS Next 2Y16.42%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%
Revenue Next Year3.84%
Revenue Next 2Y4.3%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
EBIT growth 1Y-11.94%
EBIT growth 3Y0.76%
EBIT growth 5Y6.49%
EBIT Next Year117.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y54.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.23%
OCF growth 3Y-1.39%
OCF growth 5Y3.28%

ALGONQUIN POWER & UTILITIES / AQN Fundamental Analysis 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 4 / 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 124.37%.