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 3 out of 10 in our fundamental rating. 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's Return On Assets of -6.24% is on the low side compared to the rest of the industry. AQN is outperformed by 92.00% of its industry peers.
The Return On Equity of AQN (-22.90%) is worse than 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.
Measured over the past 3 years, the Average Return On Invested Capital for AQN is in line with the industry average of 3.68%.
The 3 year average ROIC (2.30%) for AQN is below the current ROIC(2.91%), indicating increased profibility in the last year.
| 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
In the last couple of years the Profit Margin of AQN has declined.
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.
The Gross Margin of AQN (74.55%) is better than 80.00% 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 | 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
AQN has an Altman-Z score of 0.25. This is a bad value and indicates that AQN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.25, AQN is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
AQN has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
AQN has a Debt to Equity ratio of 1.49. This is comparable to the rest of the industry: AQN outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.25 |
ROIC/WACC0.58
WACC5.02%
2.3 Liquidity
AQN has a Current Ratio of 0.92. 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 Current ratio of 0.92. This is amongst the best in the industry. AQN outperforms 84.00% of its industry peers.
A Quick Ratio of 0.77 indicates that AQN may have some problems paying its short term obligations.
AQN's Quick ratio of 0.77 is amongst the best of the industry. AQN outperforms 84.00% 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.
Measured over the past years, AQN shows a quite strong growth in Revenue. The Revenue has been growing by 10.35% on average per year.
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
Based on estimates for the next years, AQN will show a decrease in Earnings Per Share. The EPS will decrease by -4.45% on average per year.
AQN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.28% yearly.
EPS Next Y-22.74%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
EPS Next 5Y-4.45%
Revenue Next Year-4.55%
Revenue Next 2Y-4.94%
Revenue Next 3Y-2.09%
Revenue Next 5Y-0.28%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.55, which indicates a very decent valuation of AQN.
72.00% of the companies in the same industry are more expensive than AQN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, AQN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.10, the valuation of AQN can be described as correct.
AQN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, AQN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 16.1 |
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 | 10.1 |
4.3 Compensation for Growth
A cheap valuation may be justified as AQN's earnings are expected to decrease with -11.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
5. Dividend
5.1 Amount
AQN has a Yearly Dividend Yield of 5.29%, which is a nice return.
Compared to an average industry Dividend Yield of 3.76, AQN pays a better dividend. On top of this AQN pays more dividend than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, AQN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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
The earnings of AQN are negative and hence is the payout ratio. AQN will probably not be able to sustain this dividend level.
DP-28.84%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
4.96
-0.04 (-0.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change-92.35%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap3.81B
Analysts68.57
Price Target4.02 (-18.95%)
Short Float %2.16%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend0.48
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)-1.38%
PT rev (3m)-6.63%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)2.52%
EPS NY rev (3m)-9.6%
Revenue NQ rev (1m)-12.03%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 16.1 | ||
| P/S | 1.21 | ||
| P/FCF | N/A | ||
| P/OCF | 6 | ||
| P/B | 0.79 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)0.47
EY9.48%
EPS(NY)0.31
Fwd EY6.21%
FCF(TTM)-0.39
FCFYN/A
OCF(TTM)0.83
OCFY16.67%
SpS4.09
BVpS6.31
TBVpS4.49
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 | 0.25 |
F-Score6
WACC5.02%
ROIC/WACC0.58
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-22.74%
EPS Next 2Y-23.03%
EPS Next 3Y-11.12%
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-4.55%
Revenue Next 2Y-4.94%
Revenue Next 3Y-2.09%
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%