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Algonquin Power & Utilities

TSX:AQN
Snowflake Description

Proven track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AQN
TSX
CA$8B
Market Cap
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Last updated 2019/05/24 00:17
Company description

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada and the United States. The last earnings update was 15 days ago. More info.

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AQN Share Price and Events
7 Day Returns
0.4%
TSX:AQN
1.5%
North America Integrated Utilities
0.6%
CA Market
1 Year Returns
23%
TSX:AQN
20.2%
North America Integrated Utilities
-1.2%
CA Market
AQN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Algonquin Power & Utilities (AQN) 0.4% 2.9% 8.5% 23% 37.5% 95.2%
North America Integrated Utilities 1.5% 3.3% 5.7% 20.2% 24.4% 34.7%
CA Market 0.6% -1.6% 1.6% -1.2% 12.2% 5.5%
1 Year Return vs Industry and Market
  • AQN outperformed the Integrated Utilities industry which returned 20.2% over the past year.
  • AQN outperformed the Market in Canada which returned -1.2% over the past year.
Price Volatility
AQN
Industry
5yr Volatility vs Market

Value

 Is Algonquin Power & Utilities undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Algonquin Power & Utilities. This is due to cash flow or dividend data being unavailable. The share price is CA$15.77.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Algonquin Power & Utilities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Algonquin Power & Utilities's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:AQN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.43
TSX:AQN Share Price ** TSX (2019-05-23) in CAD CA$15.77
TSX:AQN Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $11.71
North America Integrated Utilities Industry PE Ratio Median Figure of 18 Publicly-Listed Integrated Utilities Companies 19.87x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Algonquin Power & Utilities.

TSX:AQN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:AQN Share Price ÷ EPS (both in USD)

= 11.71 ÷ 0.43

 26.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Algonquin Power & Utilities is overvalued based on earnings compared to the North America Integrated Utilities industry average.
  • Algonquin Power & Utilities is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Algonquin Power & Utilities's expected growth come at a high price?
Raw Data
TSX:AQN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts		 17.5%per year
North America Integrated Utilities Industry PEG Ratio Median Figure of 17 Publicly-Listed Integrated Utilities Companies 2.59x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

TSX:AQN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.97x ÷ 17.5%

 1.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Algonquin Power & Utilities is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Algonquin Power & Utilities's assets?
Raw Data
TSX:AQN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.20
TSX:AQN Share Price * TSX (2019-05-23) in CAD CA$15.77
TSX:AQN Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $11.71
North America Integrated Utilities Industry PB Ratio Median Figure of 20 Publicly-Listed Integrated Utilities Companies 2.11x
Canada Market PB Ratio Median Figure of 2,403 Publicly-Listed Companies 1.44x
TSX:AQN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:AQN Share Price ÷ Book Value per Share (both in USD)

= 11.71 ÷ 6.20

 1.89x

* Primary Listing of Algonquin Power & Utilities.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Algonquin Power & Utilities is good value based on assets compared to the North America Integrated Utilities industry average.
X
Value checks
We assess Algonquin Power & Utilities's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Integrated Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Integrated Utilities industry average (and greater than 0)? (1 check)
    5. Algonquin Power & Utilities has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Algonquin Power & Utilities expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Algonquin Power & Utilities expected to grow at an attractive rate?
  • Algonquin Power & Utilities's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Algonquin Power & Utilities's earnings growth is expected to exceed the Canada market average.
  • Algonquin Power & Utilities's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:AQN Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:AQN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 17.5%
TSX:AQN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 11.5%
North America Integrated Utilities Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
North America Integrated Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:AQN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:AQN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,798 969 544 3
2022-12-31 2,563 842 474 3
2021-12-31 2,161 712 460 4
2020-12-31 1,957 623 343 9
2019-12-31 1,796 530 289 9
TSX:AQN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,630 555 207
2018-12-31 1,647 530 71
2018-09-30 1,645 505 74
2018-06-30 1,606 468 59
2018-03-31 1,595 368 28
2017-12-31 1,522 327 94
2017-09-30 1,361 308 81
2017-06-30 1,168 222 53
2017-03-31 988 231 43
2016-12-31 816 214 61
2016-09-30 797 198 59
2016-06-30 781 242 58

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Algonquin Power & Utilities's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • Algonquin Power & Utilities's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:AQN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Algonquin Power & Utilities Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:AQN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.95 0.95 0.95 1.00
2022-12-31 0.85 0.85 0.85 1.00
2021-12-31 0.85 0.85 0.85 1.00
2020-12-31 0.69 0.73 0.64 4.00
2019-12-31 0.64 0.67 0.61 4.00
TSX:AQN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.43
2018-12-31 0.15
2018-09-30 0.17
2018-06-30 0.14
2018-03-31 0.07
2017-12-31 0.25
2017-09-30 0.23
2017-06-30 0.17
2017-03-31 0.15
2016-12-31 0.22
2016-09-30 0.22
2016-06-30 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Algonquin Power & Utilities is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Integrated Utilities industry
X
Future performance checks
We assess Algonquin Power & Utilities's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Algonquin Power & Utilities has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Algonquin Power & Utilities performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Algonquin Power & Utilities's growth in the last year to its industry (Integrated Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Algonquin Power & Utilities has delivered over 20% year on year earnings growth in the past 5 years.
  • Algonquin Power & Utilities's 1-year earnings growth exceeds its 5-year average (644.5% vs 20.3%)
  • Algonquin Power & Utilities's earnings growth has exceeded the North America Integrated Utilities industry average in the past year (644.5% vs 15.6%).
Earnings and Revenue History
Algonquin Power & Utilities's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Algonquin Power & Utilities Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:AQN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,629.78 206.75 58.02
2018-12-31 1,647.39 71.06 56.62
2018-09-30 1,645.09 73.93 48.65
2018-06-30 1,605.97 58.63 47.95
2018-03-31 1,595.10 27.77 58.05
2017-12-31 1,521.94 93.69 58.68
2017-09-30 1,360.68 81.37 51.42
2017-06-30 1,167.76 52.81 47.15
2017-03-31 987.68 42.78 39.86
2016-12-31 815.96 61.03 34.51
2016-09-30 796.97 58.81 35.23
2016-06-30 781.48 57.73 32.85
2016-03-31 761.67 55.22 31.46
2015-12-31 740.81 54.87 28.71
2015-09-30 766.58 55.77 28.36
2015-06-30 792.59 43.39 30.21
2015-03-31 774.30 38.80 29.55
2014-12-31 813.09 39.84 29.96
2014-09-30 793.97 34.94 26.22
2014-06-30 809.99 49.50 25.58
2014-03-31 747.78 52.82 23.92
2013-12-31 635.65 43.39 22.14
2013-09-30 591.87 42.17 23.05
2013-06-30 544.68 37.88 20.80
2013-03-31 475.82 34.02 19.71
2012-12-31 349.94 20.20 19.64
2012-09-30 280.24 0.48 19.37
2012-06-30 244.15 20.90 19.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Algonquin Power & Utilities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Algonquin Power & Utilities used its assets less efficiently than the North America Integrated Utilities industry average last year based on Return on Assets.
  • Algonquin Power & Utilities has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Show me more strong past performing companies in the Integrated Utilities industry
X
Past performance checks
We assess Algonquin Power & Utilities's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Integrated Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Algonquin Power & Utilities has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Algonquin Power & Utilities's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Algonquin Power & Utilities's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Algonquin Power & Utilities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Algonquin Power & Utilities's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Algonquin Power & Utilities's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Algonquin Power & Utilities Company Filings, last reported 1 month ago.

TSX:AQN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,070.30 3,729.72 85.32
2018-12-31 4,038.51 3,438.47 46.82
2018-09-30 3,629.84 3,643.12 88.16
2018-06-30 3,613.68 3,540.16 37.81
2018-03-31 3,262.55 3,916.08 67.91
2017-12-31 3,361.65 3,079.55 43.48
2017-09-30 2,892.80 3,627.78 64.74
2017-06-30 2,862.09 3,492.36 27.83
2017-03-31 2,716.85 3,678.13 58.34
2016-12-31 1,872.63 3,193.51 82.20
2016-09-30 1,829.84 1,910.09 36.20
2016-06-30 1,656.40 1,787.27 207.31
2016-03-31 1,690.71 1,793.12 238.37
2015-12-31 1,670.38 1,084.23 89.96
2015-09-30 1,564.22 1,288.30 65.05
2015-06-30 1,597.88 1,217.67 21.33
2015-03-31 1,594.75 1,245.24 17.88
2014-12-31 1,596.22 1,113.34 8.01
2014-09-30 1,443.80 1,300.81 23.91
2014-06-30 1,315.00 1,321.09 3.16
2014-03-31 1,323.98 1,316.88 28.76
2013-12-31 1,379.91 1,199.59 13.59
2013-09-30 1,382.34 1,083.11 8.76
2013-06-30 1,378.34 1,057.01 35.48
2013-03-31 1,418.74 924.83 16.56
2012-12-31 1,406.70 774.30 53.30
2012-09-30 767.45 721.26 16.64
2012-06-30 664.87 458.85 157.70
  • Algonquin Power & Utilities's level of debt (91.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (99.5% vs 91.6% today).
  • Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Algonquin Power & Utilities's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Algonquin Power & Utilities has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Algonquin Power & Utilities's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.82%
Current annual income from Algonquin Power & Utilities dividends. Estimated to be 5.33% next year.
If you bought CA$2,000 of Algonquin Power & Utilities shares you are expected to receive CA$96 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Algonquin Power & Utilities's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Algonquin Power & Utilities's dividend is below the markets top 25% of dividend payers in Canada (5.68%).
Upcoming dividend payment

Purchase Algonquin Power & Utilities before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:AQN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
North America Integrated Utilities Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 3.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:AQN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.81 2.00
2022-12-31 0.77 2.00
2021-12-31 0.67 4.00
2020-12-31 0.62 12.00
2019-12-31 0.56 12.00
TSX:AQN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.564 4.897
2019-02-28 0.513 4.539
2018-11-08 0.513 4.830
2018-08-09 0.513 5.005
2018-05-10 0.513 5.274
2018-03-01 0.456 4.701
2017-11-14 0.466 4.341
2017-08-11 0.459 4.405
2017-05-11 0.464 4.697
2017-01-17 0.446 4.981
2016-11-10 0.420 5.150
2016-08-11 0.409 4.673
2016-05-12 0.424 4.635
2016-03-10 0.385 4.731
2015-11-06 0.385 4.904
2015-08-14 0.385 5.283
2015-03-05 0.350 4.625
2014-11-14 0.350 4.235
2014-08-14 0.350 4.347
2014-05-09 0.310 4.180
2014-03-07 0.302 4.383
2013-11-15 0.304 4.736
2013-08-15 0.322 5.195
2013-05-09 0.321 4.640
2013-03-14 0.302 4.047
2012-11-20 0.301 4.332
2012-08-09 0.308 4.610
2012-05-15 0.269 4.310
2012-03-08 0.279 4.579
2011-11-14 0.267 4.556
2011-08-11 0.264 4.965
2011-05-12 0.262 4.596
2011-03-03 0.262 4.991
2010-12-17 0.236 4.863
2010-08-13 0.226 5.232
2010-05-07 0.222 5.881
2010-04-01 0.229 5.495
2010-03-31 0.236 5.424
2010-03-04 0.233 5.242
2009-11-19 0.223 5.965
2009-09-23 0.220 6.951
2009-08-20 0.217 6.786
2009-07-29 0.216 6.478
2009-06-18 0.206 7.012

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Algonquin Power & Utilities's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Algonquin Power & Utilities's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Algonquin Power & Utilities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Algonquin Power & Utilities has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Algonquin Power & Utilities's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ian Robertson
COMPENSATION $4,432,823
AGE 59
TENURE AS CEO 9.6 years
CEO Bio

Mr. Ian Edward Robertson, PEng, MBA, CFA, C.Dir, has been Chief Executive Officer and Director of Algonquin Power & Utilities Corp. since October 27, 2009 and served as its President. Mr. Robertson is a founder of Algonquin Power & Utilities Corporation. Mr. Robertson serves as Executive Director of Business Development at Algonquin Manager Inc., a Manager of Algonquin Power Income Fund. He serves as President of Algonquin (airsource) Gp Inc., the General Partner of Algonquin (AirSource) Power LP. He is the Founder and a Principal of Algonquin Power Corporation Inc. a private independent power developer formed in 1988 which was a predecessor organization to APUC. He has been a Senior Manager of Algonquin Power Corporation since January 1988. He served as the Chief Executive Officer and President of Highground Capital Corp. He has over 30 years of experience in development, financing, acquisition and operation of electric power generating projects both in North America and internationally. Mr. Robertson's academic and professional experience have combined to assist in his principal occupation as Executive Director of Business Development for APIF. He served as a Vice-President of Algonquin Power Management Inc., a Manager of KMS Power Income Fund and Algonquin Power & Utilities Corp. Mr. Robertson served as a Vice President of Algonquin Manager Inc., a Manager of Algonquin Power Income Fund and Algonquin Power Systems Inc. He serves as the Chairman of Air Source Power Fund GP Inc., a General Partner of Airsource Power Fund I Lp. Mr. Robertson is Director of Liberty Utilities (Granite State Electric) Corp. He serves as a Director of Atlantica Yield. He served as a Director of North Peace Energy Corp. from 2007 to 2010. Mr. Robertson serves as a Director of Algonquin Power Systems Inc. and Algonquin Manager Inc. He served as Director of Highground Capital Corp. from 2002 to 2005. Mr. Robertson has been Non-Independent Director of Algonquin Power & Utilities Corp. since October 27, 2009. Previously, he served as a Board Member at Algonquin Power & Utilities Corp. and Algonquin Power Management Inc., since December 2009. He served as a Director of Juno Capital Corp. from 2003 to 2007. Commencing in 2013, Mr. Robertson has served on the Board of Directors of the American Gas Association. He was awarded a Chartered Financial Analyst designation in 2008. Mr. Robertson is an Electrical Engineer and holds a Professional Engineer designation. He is a certified Chartered Director (C. Dir.) having completed the Chartered Director program of the Directors College (McMaster University). He earned a Bachelors of Applied Science awarded by the University of Waterloo in 1982 and a Master of Business Administration degree from York University in 1991 and a Global Professional Master of Laws degree (University of Toronto).

CEO Compensation
  • Ian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ian's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Algonquin Power & Utilities management team in years:

3.3
Average Tenure
57
Average Age
  • The tenure for the Algonquin Power & Utilities management team is about average.
Management Team

Ian Robertson

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
9.6 yrs

David Bronicheski

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
59
TENURE
9.6 yrs

David Pasieka

TITLE
Chief Transformation Officer
COMPENSATION
$1M
AGE
61
TENURE
0.8 yrs

Jeff Norman

TITLE
Chief Development Officer
COMPENSATION
$1M
AGE
49
TENURE
4.3 yrs

Johnny Johnston

TITLE
Chief Operating Officer
TENURE
0.3 yrs

Joseph Cargnelli

TITLE
AGE
48

George Trisic

TITLE
Chief Administration Officer & Corporate Secretary
AGE
57

Ian Tharp

TITLE
Vice President

Jennifer Tindale

TITLE
Chief Legal Officer
AGE
46
TENURE
2.3 yrs

Mary Paravalos

TITLE
Chief Compliance & Risk Officer
Board of Directors Tenure

Average tenure and age of the Algonquin Power & Utilities board of directors in years:

9.6
Average Tenure
62
Average Age
  • The tenure for the Algonquin Power & Utilities board of directors is about average.
Board of Directors

Ken Moore

TITLE
Chairman
COMPENSATION
$359K
AGE
60
TENURE
9.6 yrs

Ian Robertson

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
9.6 yrs

Chris Jarratt

TITLE
Vice Chairman
COMPENSATION
$3M
AGE
60
TENURE
10.3 yrs

George Steeves

TITLE
Director
COMPENSATION
$221K
AGE
68
TENURE
9.6 yrs

Chris Ball

TITLE
Director
COMPENSATION
$243K
AGE
67
TENURE
9.6 yrs

Masheed Saidi

TITLE
Director
COMPENSATION
$231K
AGE
63
TENURE
4.9 yrs

Dilek Samil

TITLE
Director
COMPENSATION
$245K
AGE
62
TENURE
4.6 yrs

Melissa Barnes

TITLE
Director
COMPENSATION
$210K
AGE
50
TENURE
2.9 yrs

D. Laney

TITLE
Director
COMPENSATION
$231K
AGE
63
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Algonquin Power & Utilities insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
07. Mar 19 Sell David Pasieka Individual 06. Mar 19 06. Mar 19 -40,000 CA$15.03 CA$-601,200
28. Dec 18 Buy Masheed Saidi Individual 26. Dec 18 26. Dec 18 5,415 CA$9.85 CA$53,338
27. Dec 18 Sell David Pasieka Individual 21. Dec 18 21. Dec 18 -18,500 CA$13.95 CA$-258,019
29. Jun 18 Sell Michael Snow Individual 27. Jun 18 27. Jun 18 -7,785 CA$12.85 CA$-100,037
X
Management checks
We assess Algonquin Power & Utilities's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Algonquin Power & Utilities has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Do Analysts Think About Algonquin Power & Utilities Corp.'s (TSE:AQN) Growth?

After Algonquin Power & Utilities Corp.'s (TSE:AQN) earnings announcement on 31 March 2019, analysts seem highly optimistic, with profits predicted to ramp up by an impressive 52% next year, relative to the historical 5-year average growth rate of 20%. … In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Algonquin Power & Utilities in the longer term. … Check out our latest analysis for Algonquin Power & Utilities What can we expect from Algonquin Power & Utilities in the longer term?

Simply Wall St - –

Does Algonquin Power & Utilities's (TSE:AQN) Share Price Gain of 90% Match Its Business Performance?

(TSE:AQN) share price is up 90% in the last 5 years, clearly besting than the market return of around 5.3% (ignoring dividends). … Algonquin Power & Utilities's earnings per share are down 6.2% per year, despite strong share price performance over five years. … Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.

Simply Wall St - –

Algonquin Power & Utilities Corp. (TSE:AQN) Might Not Be A Great Investment

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St - –

What Kind Of Investor Owns Most Of Algonquin Power & Utilities Corp. (TSE:AQN)?

If you want to know who really controls Algonquin Power & Utilities Corp. … (TSE:AQN), then you'll have to look at the makeup of its share registry. … With a market capitalization of CA$7.5b, Algonquin Power & Utilities is rather large.

Simply Wall St - –

Does Algonquin Power & Utilities Corp.'s (TSE:AQN) CEO Pay Matter?

Ian Robertson became the CEO of Algonquin Power & Utilities Corp. … See our latest analysis for Algonquin Power & Utilities? … Our data indicates that Algonquin Power & Utilities Corp.

Simply Wall St - –

How Does Algonquin Power & Utilities Corp. (TSE:AQN) Fare As A Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's dig deeper into whether Algonquin Power & Utilities should have a place in your portfolio. … See our latest analysis for Algonquin Power & Utilities

Simply Wall St - –

Is Algonquin Power & Utilities Corp.'s (TSE:AQN) 2.3% ROE Worse Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.023 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

Is Algonquin Power & Utilities Corp.'s (TSE:AQN) High P/E Ratio A Problem For Investors?

To keep it practical, we'll show how Algonquin Power & Utilities Corp.'s (TSE:AQN) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 65.45 = $10.86 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.17

Simply Wall St - –

Why Algonquin Power & Utilities Corp.’s (TSE:AQN) Return On Capital Employed Looks Uninspiring

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St - –

Is Algonquin Power & Utilities Corp.'s (TSE:AQN) Balance Sheet A Threat To Its Future?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Algonquin Power & Utilities Corp. … Don’t forget that this is a general and concentrated examination of Algonquin Power & Utilities’s financial health, so you should conduct further analysis. … See our latest analysis for Algonquin Power & Utilities

Simply Wall St - –

Company Info

Description

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada and the United States. It generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with a combined gross generating capacity of approximately 1.5 gigawatt; a portfolio of regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 266,000 electric connections; 338,000 natural gas connections; and 164,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, Arizona, and Texas. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

Details
Name: Algonquin Power & Utilities Corp.
AQN
Exchange: TSX
Founded: 1988
CA$7,773,284,578
492,915,953
Website: http://algonquinpower.com
Address: Algonquin Power & Utilities Corp.
354 Davis Road,
Suite 100,
Oakville,
Ontario, L6J 2X1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX AQN Common Shares The Toronto Stock Exchange CA CAD 23. Dec 1997
NYSE AQN Common Shares New York Stock Exchange US USD 23. Dec 1997
DB 751 Common Shares Deutsche Boerse AG DE EUR 23. Dec 1997
Number of employees
Current staff
Staff numbers
2,277
Algonquin Power & Utilities employees.
Industry
Multi-Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:17
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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