ALGONQUIN POWER & UTILITIES (AQN) Fundamental Analysis & Valuation

NYSE:AQN • CA0158571053

Current stock price

6.265 USD
-0.04 (-0.56%)
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.
  • In the past year AQN had a positive cash flow from operations.
  • In multiple years AQN reported negative net income over the last 5 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

  • AQN's Return On Assets of 1.20% is on the low side compared to the rest of the industry. AQN is outperformed by 88.46% of its industry peers.
  • With a Return On Equity value of 3.67%, AQN is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 3.19%, AQN is doing worse than 84.62% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AQN is in line with the industry average of 3.74%.
  • The 3 year average ROIC (2.59%) for AQN is below the current ROIC(3.19%), indicating increased profibility in the last year.
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 worse Profit Margin (7.00%) than 88.46% of its industry peers.
  • In the last couple of years the Profit Margin of AQN has declined.
  • AQN has a Operating Margin of 21.49%. This is comparable to the rest of the industry: AQN outperforms 57.69% of its industry peers.
  • In the last couple of years the Operating Margin of AQN has remained more or less at the same level.
  • AQN's Gross Margin of 73.71% is fine compared to the rest of the industry. AQN outperforms 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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2

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.
  • AQN has about the same amout of shares outstanding than it did 1 year ago.
  • AQN has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AQN is higher compared to a year ago.
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 0.31. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
  • AQN's Altman-Z score of 0.31 is on the low side compared to the rest of the industry. AQN is outperformed by 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 73.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.31
ROIC/WACC0.57
WACC5.57%
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

  • A Current Ratio of 1.00 indicates that AQN should not have too much problems paying its short term obligations.
  • The Current ratio of AQN (1.00) is better than 80.77% of its industry peers.
  • 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's Quick ratio of 0.85 is fine compared to the rest of the industry. AQN outperforms 76.92% 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%.
  • AQN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.41% yearly.
  • Looking at the last year, AQN shows a very negative growth in Revenue. The Revenue has decreased by -20.38% in the last year.
  • AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
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 10.85% on average over the next years. This is quite good.
  • AQN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A

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.
  • 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.
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

  • A Price/Earnings ratio of 18.98 indicates a rather expensive valuation of AQN.
  • AQN's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.15, AQN is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 17.16 indicates a rather expensive valuation of AQN.
  • AQN's Price/Forward Earnings ratio is in line with the industry average.
  • AQN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 18.98
Fwd PE 17.16
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as AQN.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.28
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)1.79
PEG (5Y)N/A
EPS Next 2Y12.22%
EPS Next 3Y10.85%

More info and screens

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

5

5. AQN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.20%, AQN is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.37, 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 1.82, AQN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.2%

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

  • AQN pays out 124.37% of its income as dividend. This is not a sustainable payout ratio.
DP124.37%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
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

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AQN Fundamentals: All Metrics, Ratios and Statistics

ALGONQUIN POWER & UTILITIES

NYSE:AQN (4/28/2026, 12:47:04 PM)

6.265

-0.04 (-0.56%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06
Earnings (Next)05-08
Inst Owners74.05%
Inst Owner Change0.02%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.81B
Revenue(TTM)2.43B
Net Income(TTM)170.30M
Analysts71.67
Price Target4.85 (-22.59%)
Short Float %1.07%
Short Ratio1.8
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
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)-2.88%
PT rev (3m)-3.82%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.03%
Valuation
Industry RankSector Rank
PE 18.98
Fwd PE 17.16
P/S 1.98
P/FCF N/A
P/OCF 8.11
P/B 1.04
P/tB 1.48
EV/EBITDA 12.28
EPS(TTM)0.33
EY5.27%
EPS(NY)0.37
Fwd EY5.83%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.77
OCFY12.33%
SpS3.17
BVpS6.04
TBVpS4.23
PEG (NY)1.79
PEG (5Y)N/A
Graham Number6.69698 (6.9%)
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 0.31
F-Score6
WACC5.57%
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 Y10.62%
EPS Next 2Y12.22%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.38%
Revenue growth 3Y-4.17%
Revenue growth 5Y7.73%
Sales Q2Q%7.85%
Revenue Next Year5.37%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y-11.94%
EBIT growth 3Y0.76%
EBIT growth 5Y6.49%
EBIT Next Year124.09%
EBIT Next 3Y37.63%
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.


Can you provide the valuation status for ALGONQUIN POWER & UTILITIES?

ChartMill assigns a valuation rating of 2 / 10 to ALGONQUIN POWER & UTILITIES (AQN). This can be considered as Overvalued.


Can you provide the profitability details for ALGONQUIN POWER & UTILITIES?

ALGONQUIN POWER & UTILITIES (AQN) has a profitability rating of 4 / 10.


Can you provide the financial health for AQN stock?

The financial health rating of ALGONQUIN POWER & UTILITIES (AQN) is 3 / 10.


What is the expected EPS growth for ALGONQUIN POWER & UTILITIES (AQN) stock?

The Earnings per Share (EPS) of ALGONQUIN POWER & UTILITIES (AQN) is expected to grow by 10.62% in the next year.