ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQNB - US0158578080
25.8801 USD
-0.05 (-0.19%)
Taking everything into account, AQNB scores 3 out of 10 in our fundamental rating. AQNB was compared to 26 industry peers in the Multi-Utilities industry. While AQNB seems to be doing ok healthwise, there are quite some concerns on its profitability. AQNB has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- AQNB had positive earnings in the past year.
- In the past year AQNB had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: AQNB reported negative net income in multiple years.
- Each year in the past 5 years AQNB had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.27%, AQNB is doing worse than 96.15% of the companies in the same industry.
- AQNB has a Return On Equity of -0.80%. This is amonst the worse of the industry: AQNB underperforms 96.15% of its industry peers.
- The Return On Invested Capital of AQNB (3.16%) is worse than 88.46% of its industry peers.
- AQNB had an Average Return On Invested Capital over the past 3 years of 2.36%. This is in line with the industry average of 3.94%.
- The 3 year average ROIC (2.36%) for AQNB 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
- AQNB has a Operating Margin (21.55%) which is comparable to the rest of the industry.
- AQNB's Operating Margin has declined in the last couple of years.
- The Gross Margin of AQNB (73.94%) is better than 73.08% of its industry peers.
- In the last couple of years the Gross Margin of AQNB has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQNB is destroying value.
- Compared to 1 year ago, AQNB has more shares outstanding
- The number of shares outstanding for AQNB has been increased compared to 5 years ago.
- The debt/assets ratio for AQNB has been reduced compared to a year ago.
2.2 Solvency
- AQNB has an Altman-Z score of 1.32. This is a bad value and indicates that AQNB is not financially healthy and even has some risk of bankruptcy.
- AQNB's Altman-Z score of 1.32 is amongst the best of the industry. AQNB outperforms 96.15% of its industry peers.
- AQNB has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of AQNB (1.33) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.45
WACC7.05%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that AQNB should not have too much problems paying its short term obligations.
- AQNB has a Current ratio of 1.23. This is amongst the best in the industry. AQNB outperforms 88.46% of its industry peers.
- AQNB has a Quick Ratio of 1.03. This is a normal value and indicates that AQNB is financially healthy and should not expect problems in meeting its short term obligations.
- AQNB has a Quick ratio of 1.03. This is amongst the best in the industry. AQNB outperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- AQNB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.79%.
- AQNB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.38% yearly.
- Looking at the last year, AQNB shows a very negative growth in Revenue. The Revenue has decreased by -23.92% in the last year.
- The Revenue has been growing slightly by 7.38% on average over the past years.
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
- AQNB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
- AQNB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-12.26%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
EPS Next 5Y4.09%
Revenue Next Year-9.53%
Revenue Next 2Y-3.01%
Revenue Next 3Y-0.37%
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 78.42, AQNB can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AQNB is valued expensively inside the industry as 96.15% of the companies are valued cheaper.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, AQNB is valued quite expensively.
- The Price/Forward Earnings ratio is 70.62, which means the current valuation is very expensive for AQNB.
- Based on the Price/Forward Earnings ratio, AQNB is valued expensively inside the industry as 96.15% of the companies are valued cheaper.
- AQNB is valuated expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.42 | ||
| Fwd PE | 70.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AQNB indicates a rather expensive valuation: AQNB more expensive than 96.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
- AQNB has a Yearly Dividend Yield of 6.58%, which is a nice return.
- AQNB's Dividend Yield is rather good when compared to the industry average which is at 3.77. AQNB pays more dividend than 96.15% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AQNB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
- The dividend of AQNB has a limited annual growth rate of 0.06%.
- AQNB has been paying a dividend for over 5 years, so it has already some track record.
- AQNB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- The earnings of AQNB are negative and hence is the payout ratio. AQNB will probably not be able to sustain this dividend level.
- AQNB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-569.86%
EPS Next 2Y-0.48%
EPS Next 3Y6.43%
ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 / AQNB FAQ
Can you provide the ChartMill fundamental rating for ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079?
ChartMill assigns a fundamental rating of 3 / 10 to AQNB.
What is the valuation status of ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) stock?
ChartMill assigns a valuation rating of 0 / 10 to ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB). This can be considered as Overvalued.
How profitable is ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) stock?
ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) has a profitability rating of 3 / 10.
How financially healthy is ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079?
The financial health rating of ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) is 4 / 10.
Can you provide the dividend sustainability for AQNB stock?
The dividend rating of ALGONQUIN PWR & UTILITY - AQNCN 8.5321 07/01/2079 (AQNB) is 6 / 10 and the dividend payout ratio is -569.86%.