TSX:AQN

Stock Analysis Report

Algonquin Power & Utilities

Executive Summary

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.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Algonquin Power & Utilities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AQN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

AQN

0.3%

CA Integrated Utilities

0.2%

CA Market


1 Year Return

32.7%

AQN

15.0%

CA Integrated Utilities

7.4%

CA Market

Return vs Industry: AQN exceeded the Canadian Integrated Utilities industry which returned 15% over the past year.

Return vs Market: AQN exceeded the Canadian Market which returned 7.4% over the past year.


Shareholder returns

AQNIndustryMarket
7 Day0.9%0.3%0.2%
30 Day1.5%-2.4%2.9%
90 Day8.0%1.0%4.1%
1 Year39.0%32.7%19.2%15.0%11.0%7.4%
3 Year98.3%72.3%46.6%31.7%16.6%6.0%
5 Year141.9%91.1%63.5%31.6%28.4%9.6%

Price Volatility Vs. Market

How volatile is Algonquin Power & Utilities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Algonquin Power & Utilities undervalued compared to its fair value and its price relative to the market?

18.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AQN (CA$18.42) is trading above our estimate of fair value (CA$10.15)

Significantly Below Fair Value: AQN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AQN is good value based on its PE Ratio (18.9x) compared to the Integrated Utilities industry average (20.6x).

PE vs Market: AQN is poor value based on its PE Ratio (18.9x) compared to the Canadian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: AQN is poor value based on its PEG Ratio (42.2x)


Price to Book Ratio

PB vs Industry: AQN is overvalued based on its PB Ratio (2.1x) compared to the XN Integrated Utilities industry average (2.1x).


Next Steps

Future Growth

How is Algonquin Power & Utilities forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQN's forecast earnings growth (0.4% per year) is below the savings rate (1.9%).

Earnings vs Market: AQN's earnings (0.4% per year) are forecast to grow slower than the Canadian market (10% per year).

High Growth Earnings: AQN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AQN's revenue (15.4% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: AQN's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AQN's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

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

42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQN has large one-off items impacting its financial results.

Growing Profit Margin: AQN's current net profit margins (22.3%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: AQN's earnings have grown significantly by 42.5% per year over the past 5 years.

Accelerating Growth: AQN's earnings growth over the past year (380.8%) exceeds its 5-year average (42.5% per year).

Earnings vs Industry: AQN earnings growth over the past year (380.8%) exceeded the Integrated Utilities industry 8.1%.


Return on Equity

High ROE: AQN's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Algonquin Power & Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: AQN's short term assets ($496.5M) do not cover its short term liabilities ($678.4M)

Long Term Liabilities: AQN's short term assets ($496.5M) do not cover its long term liabilities (5.6B)


Debt to Equity History and Analysis

Debt Level: AQN's debt to equity ratio (101.4%) is considered high.

Reducing Debt: AQN's debt to equity ratio has increased from 89.5% to 101.4% over the past 5 years.

Debt Coverage: AQN's debt is not well covered by operating cash flow (14%).

Interest Coverage: AQN's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: AQN has a high level of physical assets or inventory.

Debt Coverage by Assets: AQN's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

4.08%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.7%industryaverage3.4%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: AQN's dividend (4.08%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: AQN's dividend (4.08%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).


Stability and Growth of Payments

Stable Dividend: AQN's dividend payments have been volatile in the past 10 years.

Growing Dividend: AQN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.6%), AQN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AQN's dividends in 3 years are forecast to be covered by earnings (78.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Ian Robertson (60yo)

10.1yrs

Tenure

US$4,432,823

Compensation

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 fo ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD3.33M) is about average for companies of similar size in the Canadian market ($USD3.71M).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: AQN's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

10.1yrs

Average Tenure

63yo

Average Age

Experienced Board: AQN's board of directors are seasoned and experienced ( 10.1 years average tenure).


Insider Trading

Insider Buying: AQN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,801,25027 Sep 19
Christopher Jarratt
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares100,000
Max PriceUS$18.01
SellUS$1,801,25027 Sep 19
Ian Robertson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares100,000
Max PriceUS$18.01
SellUS$108,85121 Jun 19
Jennifer Tindale
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares6,655
Max PriceUS$16.36
SellUS$601,20007 Mar 19
David Pasieka
EntityIndividual
Role
Senior Key Executive
Chief Transformation Officer
Shares40,000
Max PriceUS$15.03
BuyUS$53,33828 Dec 18
Masheed Saidi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,415
Max PriceUS$9.85
SellUS$258,01927 Dec 18
David Pasieka
EntityIndividual
Role
Senior Key Executive
Chief Transformation Officer
Shares18,500
Max PriceUS$13.95

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Management Team

  • David Pasieka (62yo)

    Chief Transformation Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.26m
  • Ian Robertson (60yo)

    CEO & Director

    • Tenure: 10.1yrs
    • Compensation: US$4.43m
  • David Bronicheski (60yo)

    Chief Financial Officer

    • Tenure: 10.1yrs
    • Compensation: US$1.72m
  • Ian Tharp

    Vice President

    • Tenure: 0yrs
  • Jennifer Tindale (47yo)

    Chief Legal Officer

    • Tenure: 2.8yrs
  • Jeff Norman (50yo)

    Chief Development Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.27m
  • Johnny Johnston

    Chief Operating Officer

    • Tenure: 0.8yrs
  • George Trisic (58yo)

    Chief Administration Officer & Corporate Secretary

    • Tenure: 0yrs
  • Michael Dilworth

    Senior Vice President of Solar Development Group

    • Tenure: 0.8yrs
  • Mary Paravalos

    Chief Compliance & Risk Officer

    • Tenure: 0yrs

Board Members

  • D. Laney (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$231.35k
  • Dilek Samil (63yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$245.15k
  • George Steeves (69yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$221.35k
  • Ken Moore (61yo)

    Chairman

    • Tenure: 10.1yrs
    • Compensation: US$359.48k
  • Chris Jarratt (61yo)

    Vice Chairman

    • Tenure: 10.8yrs
    • Compensation: US$3.08m
  • Ian Robertson (60yo)

    CEO & Director

    • Tenure: 10.1yrs
    • Compensation: US$4.43m
  • Chris Ball (68yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$243.03k
  • Masheed Saidi (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$231.26k
  • Melissa Barnes (51yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$209.66k

Company Information

Algonquin Power & Utilities Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Algonquin Power & Utilities Corp.
  • Ticker: AQN
  • Exchange: TSX
  • Founded: 1988
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: CA$9.571b
  • Shares outstanding: 519.59m
  • Website: https://algonquinpower.com

Number of Employees


Location

  • Algonquin Power & Utilities Corp.
  • 354 Davis Road
  • Suite 100
  • Oakville
  • Ontario
  • L6J 2X1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AQNTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1997
AQNNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1997
751DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1997

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:13
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.