ALGONQUIN POWER & UTILITIES (AQN) Stock Fundamental Analysis
NYSE:AQN - New York Stock Exchange, Inc. - CA0158571053 - Common Stock - Currency: USD
Taking everything into account, AQN scores 4 out of 10 in our fundamental rating. AQN was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of AQN while its profitability can be described as average. 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.
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.
Each year in the past 5 years AQN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AQN (-9.49%) is worse than 92.00% of its industry peers.
The Return On Equity of AQN (-27.63%) is worse than 92.00% of its industry peers.
With a Return On Invested Capital value of 3.93%, AQN perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
AQN had an Average Return On Invested Capital over the past 3 years of 2.36%. This is in line with the industry average of 3.93%.
The last Return On Invested Capital (3.93%) for AQN is above the 3 year average (2.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROIC | 3.93% |
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 21.00%, AQN is in line with its industry, outperforming 56.00% of the companies in the same industry.
AQN's Operating Margin has declined in the last couple of years.
AQN has a better Gross Margin (73.47%) than 76.00% of its industry peers.
In the last couple of years the Gross Margin of AQN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQN is destroying value.
AQN has more shares outstanding than it did 1 year ago.
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 0.39. 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 0.39 is on the low side compared to the rest of the industry. AQN is outperformed by 92.00% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that AQN has dependencies on debt financing.
AQN has a Debt to Equity ratio of 1.28. This is in the better half of the industry: AQN outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.68
WACC5.74%
2.3 Liquidity
AQN has a Current Ratio of 1.16. This is a normal value and indicates that AQN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, AQN belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that AQN may have some problems paying its short term obligations.
The Quick ratio of AQN (0.97) is better than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for AQN have decreased strongly by -24.49% in the last year.
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 quite strong growth in Revenue. The Revenue has grown by 13.38% in the last year.
AQN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
3.2 Future
The Earnings Per Share is expected to grow by 6.99% on average over the next years.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
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.
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
With a Price/Earnings ratio of 15.84, AQN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AQN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AQN to the average of the S&P500 Index (27.41), we can say AQN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.01, the valuation of AQN can be described as correct.
AQN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AQN to the average of the S&P500 Index (35.19), we can say AQN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 16.01 |
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 | 9.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, AQN is a good candidate for dividend investing.
AQN's Dividend Yield is a higher than the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 2.35, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
The dividend of AQN has a limited annual growth rate of 0.06%.
AQN has paid a dividend for at least 10 years, which is 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.
The dividend of AQN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-20.99%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
NYSE:AQN (7/14/2025, 3:48:00 PM)
5.86
+0.04 (+0.69%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap4.50B
Analysts53.33
Price Target4.83 (-17.58%)
Short Float %3.13%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend0.41
Dividend Growth(5Y)0.06%
DP-20.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.21%
Min EPS beat(2)-25.74%
Max EPS beat(2)42.17%
EPS beat(4)2
Avg EPS beat(4)3.68%
Min EPS beat(4)-25.74%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)-2.73%
EPS beat(12)5
Avg EPS beat(12)-3.23%
EPS beat(16)6
Avg EPS beat(16)-2.32%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)5.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)5.31%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)7
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)2.48%
PT rev (1m)10.05%
PT rev (3m)21.23%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-12.75%
EPS NY rev (1m)0%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 16.01 | ||
| P/S | 1.49 | ||
| P/FCF | N/A | ||
| P/OCF | 10.59 | ||
| P/B | 0.96 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)0.37
EY6.31%
EPS(NY)0.37
Fwd EY6.25%
FCF(TTM)-0.6
FCFYN/A
OCF(TTM)0.55
OCFY9.44%
SpS3.92
BVpS6.11
TBVpS4.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.49% | ||
| ROE | -27.63% | ||
| ROCE | 4.97% | ||
| ROIC | 3.93% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 4.44% | ||
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 73.47% | ||
| 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%
ROICexcg growth 3Y4.3%
ROICexcg 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.61 | ||
| Cap/Depr | 199.46% | ||
| Cap/Sales | 29.3% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 39.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.74%
ROIC/WACC0.68
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)-24.49%
EPS 3Y-19.53%
EPS 5Y-10.38%
EPS Q2Q%0%
EPS Next Y-20.16%
EPS Next 2Y-0.53%
EPS Next 3Y0.93%
EPS Next 5Y6.99%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y0.49%
Revenue growth 5Y7.38%
Sales Q2Q%-6.06%
Revenue Next Year-9.8%
Revenue Next 2Y-3.24%
Revenue Next 3Y-0.5%
Revenue Next 5Y2.3%
EBIT growth 1Y26.92%
EBIT growth 3Y4.45%
EBIT growth 5Y4.06%
EBIT Next Year44.64%
EBIT Next 3Y17.99%
EBIT Next 5YN/A
FCF growth 1Y-3.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.77%
OCF growth 3Y45.17%
OCF growth 5Y-4.65%