ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQN - CA0158571053 - Common Stock
6.16 USD
+0.02 (+0.33%)
6.12 USD
-0.04 (-0.65%)
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 may be in some trouble as it scores bad on both profitability and health. AQN does not seem to be growing, but still is valued expensively.
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.
In multiple years AQN reported negative net income over the last 5 years.
Each year in the past 5 years AQN had a positive operating cash flow.
1.2 Ratios
AQN has a Return On Assets of -0.27%. This is amonst the worse of the industry: AQN underperforms 92.31% of its industry peers.
The Return On Equity of AQN (-0.80%) is worse 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.
Measured over the past 3 years, the Average Return On Invested Capital for AQN is in line with the industry average of 3.96%.
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
AQN has a Operating Margin (21.55%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AQN has declined.
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
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
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.
The Altman-Z score of AQN (0.33) 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.
With a decent Debt to Equity ratio value of 1.33, AQN is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.55
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.23 indicates that AQN should not have too much problems paying its short term obligations.
AQN has a better Current ratio (1.23) 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.
Looking at the Quick ratio, with a value of 1.03, AQN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| 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.
AQN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.92%.
Measured over the past years, AQN shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
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
AQN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
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.
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
The Price/Earnings ratio is 18.67, which indicates a rather expensive current valuation of AQN.
Compared to the rest of the industry, the Price/Earnings ratio of AQN is on the same level as its industry peers.
AQN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
AQN is valuated correctly with a Price/Forward Earnings ratio of 16.82.
AQN's Price/Forward Earnings ratio is in line with the industry average.
AQN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, AQN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.44, AQN pays a better dividend. On top of this AQN pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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.
AQN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
6.16
+0.02 (+0.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.48%
Inst Owner Change3.24%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.73B
Revenue(TTM)2.39B
Net Income(TTM)-37.22M
Analysts68.33
Price Target4.91 (-20.29%)
Short Float %1.19%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-569.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)3.51%
PT rev (3m)0.01%
EPS NQ rev (1m)-17.05%
EPS NQ rev (3m)-17.95%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.82 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | 10.16 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 12.17 |
EPS(TTM)0.33
EY5.36%
EPS(NY)0.37
Fwd EY5.94%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.61
OCFY9.84%
SpS3.11
BVpS6.05
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
WACC5.75%
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-15.04%
EPS Next 2Y-0.53%
EPS Next 3Y5.89%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%1.66%
Revenue Next Year-10.84%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.19%
Revenue Next 5Y2.3%
EBIT growth 1Y-15.87%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year40.67%
EBIT Next 3Y19.82%
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 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 -15.04% 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 -569.86%.