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, the United States, Chile, and Bermuda. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 13.1% per year for the next 3 years
+ 2 more risks
Snowflake Analysis
Good value with proven track record.
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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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: AQN's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
2.2%
AQN
2.2%
CA Integrated Utilities
1.5%
CA Market
1 Year Return
5.9%
AQN
5.4%
CA Integrated Utilities
28.5%
CA Market
Return vs Industry: AQN exceeded the Canadian Integrated Utilities industry which returned 4.8% over the past year.
Return vs Market: AQN underperformed the Canadian Market which returned 27.5% over the past year.
Shareholder returns
| AQN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 2.2% | 1.5% |
| 30 Day | 5.5% | 2.3% | -0.02% |
| 90 Day | -0.9% | -3.4% | 3.9% |
| 1 Year | 10.4%5.9% | 10.3%5.4% | 32.4%28.5% |
| 3 Year | 73.5%51.9% | 29.8%15.4% | 31.5%18.8% |
| 5 Year | 101.7%60.7% | 45.7%20.5% | 52.9%30.3% |
Long-Term 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
1 week ago | Simply Wall St
Algonquin Power & Utilities Corp. (TSE:AQN) Delivered A Better ROE Than Its Industry3 weeks ago | Simply Wall St
How Many Algonquin Power & Utilities Corp. (TSE:AQN) Shares Do Institutions Own?1 month ago | Simply Wall St
Shareholders Of Algonquin Power & Utilities (TSE:AQN) Must Be Happy With Their 97% ReturnValuation
Is Algonquin Power & Utilities undervalued compared to its fair value and its price relative to the market?
44.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AQN (CA$19.65) is trading below our estimate of fair value (CA$35.4)
Significantly Below Fair Value: AQN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AQN is good value based on its PE Ratio (10.7x) compared to the North American Integrated Utilities industry average (20.7x).
PE vs Market: AQN is good value based on its PE Ratio (10.7x) compared to the Canadian market (13.9x).
Price to Earnings Growth Ratio
PEG Ratio: AQN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AQN's PB Ratio (1.9x) is in line with the XN Integrated Utilities industry average.
Future Growth
How is Algonquin Power & Utilities forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-13.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AQN's earnings are forecast to decline over the next 3 years (-13.1% per year).
Earnings vs Market: AQN's earnings are forecast to decline over the next 3 years (-13.1% per year).
High Growth Earnings: AQN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AQN's revenue (7.2% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: AQN's revenue (7.2% 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 (8.9%).
Past Performance
How has Algonquin Power & Utilities performed over the past 5 years?
55.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AQN has a large one-off gain of $726.1M impacting its March 31 2021 financial results.
Growing Profit Margin: AQN's current net profit margins (46.1%) are higher than last year (23.1%).
Past Earnings Growth Analysis
Earnings Trend: AQN's earnings have grown significantly by 55.5% per year over the past 5 years.
Accelerating Growth: AQN's earnings growth over the past year (128.9%) exceeds its 5-year average (55.5% per year).
Earnings vs Industry: AQN earnings growth over the past year (128.9%) exceeded the Integrated Utilities industry 17.1%.
Return on Equity
High ROE: AQN's Return on Equity (12.8%) is considered low.
Financial Health
How is Algonquin Power & Utilities's financial position?
Financial Position Analysis
Short Term Liabilities: AQN's short term assets ($804.3M) do not cover its short term liabilities ($1.4B).
Long Term Liabilities: AQN's short term assets ($804.3M) do not cover its long term liabilities ($7.6B).
Debt to Equity History and Analysis
Debt Level: AQN's debt to equity ratio (102.6%) is considered high.
Reducing Debt: AQN's debt to equity ratio has reduced from 106.1% to 102.6% over the past 5 years.
Debt Coverage: AQN's debt is not well covered by operating cash flow (3%).
Interest Coverage: AQN's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
Dividend
What is Algonquin Power & Utilities's current dividend yield, its reliability and sustainability?
4.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AQN's dividend (4.32%) is higher than the bottom 25% of dividend payers in the Canadian market (1.6%).
High Dividend: AQN's dividend (4.32%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).
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 reasonably low payout ratio (42.1%), AQN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AQN's dividends in 3 years are not forecast to be well covered by earnings (93.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Arun Banskota (60 yo)
1
Tenure
US$2,953,432
Compensation
Mr. Arun Banskota serves as the President of Algonquin Power & Utilities Corp. since February 10, 2020 and has been its Chief Executive Officer since July 17, 2020. Mr. Banskota serves as the Director at A...
CEO Compensation Analysis
Compensation vs Market: Arun's total compensation ($USD2.95M) is below average for companies of similar size in the Canadian market ($USD6.20M).
Compensation vs Earnings: Insufficient data to compare Arun's compensation with company performance.
Leadership Team
Experienced Management: AQN's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: AQN's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AQN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.
Top Shareholders
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$12.134b
- Shares outstanding: 617.52m
- Website: https://algonquinpower.com
Number of Employees
Location
- Algonquin Power & Utilities Corp.
- 354 Davis Road
- Suite 100
- Oakville
- Ontario
- L6J 2X1
- Canada
Listings
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, the United Sta...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/30 01:53 |
| End of Day Share Price | 2021/07/29 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.