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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and slightly overvalued.
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 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
1.2%
AQN
2.2%
CA Integrated Utilities
0.2%
CA Market
1 Year Return
9.8%
AQN
-12.0%
CA Integrated Utilities
1.5%
CA Market
Return vs Industry: AQN exceeded the Canadian Integrated Utilities industry which returned -12% over the past year.
Return vs Market: AQN exceeded the Canadian Market which returned 1.5% over the past year.
Shareholder returns
| AQN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 2.2% | 0.2% |
| 30 Day | 5.1% | -1.0% | 3.6% |
| 90 Day | 3.8% | -4.7% | 13.3% |
| 1 Year | 14.8%9.8% | -8.7%-12.0% | 5.2%1.5% |
| 3 Year | 79.5%56.5% | 23.7%10.7% | 13.1%2.3% |
| 5 Year | 138.9%89.8% | 62.3%35.3% | 69.3%43.3% |
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
21 hours ago | Simply Wall St
Algonquin Power & Utilities Corp. (TSE:AQN) Shares Could Be 40% Below Their Intrinsic Value Estimate1 week ago | Simply Wall St
Have Insiders Been Selling Algonquin Power & Utilities Corp. (TSE:AQN) Shares This Year?3 weeks ago | Simply Wall St
What Kind Of Investors Own Most Of Algonquin Power & Utilities Corp. (TSE:AQN)?Valuation
Is Algonquin Power & Utilities undervalued compared to its fair value and its price relative to the market?
40.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AQN (CA$21.47) is trading below our estimate of fair value (CA$36.09)
Significantly Below Fair Value: AQN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AQN is poor value based on its PE Ratio (20.6x) compared to the XN Integrated Utilities industry average (19.8x).
PE vs Market: AQN is poor value based on its PE Ratio (20.6x) compared to the Canadian market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: AQN is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: AQN is overvalued based on its PB Ratio (2.2x) compared to the XN Integrated Utilities industry average (1.9x).
Next Steps
Future Growth
How is Algonquin Power & Utilities forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AQN's forecast earnings growth (12.8% per year) is above the savings rate (1.5%).
Earnings vs Market: AQN's earnings (12.8% per year) are forecast to grow slower than the Canadian market (26.2% per year).
High Growth Earnings: AQN's earnings are forecast to grow, but not significantly.
Revenue vs Market: AQN's revenue (11.6% per year) is forecast to grow faster than the Canadian market (7.9% per year).
High Growth Revenue: AQN's revenue (11.6% 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 (9.2%).
Next Steps
Past Performance
How has Algonquin Power & Utilities performed over the past 5 years?
52.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AQN has a large one-off gain of $266.2M impacting its September 30 2020 financial results.
Growing Profit Margin: AQN's current net profit margins (27.2%) are lower than last year (30.5%).
Past Earnings Growth Analysis
Earnings Trend: AQN's earnings have grown significantly by 52.9% per year over the past 5 years.
Accelerating Growth: AQN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AQN had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-0.5%).
Return on Equity
High ROE: AQN's Return on Equity (7.1%) is considered low.
Next Steps
Financial Health
How is Algonquin Power & Utilities's financial position?
Financial Position Analysis
Short Term Liabilities: AQN's short term assets ($760.2M) exceed its short term liabilities ($634.9M).
Long Term Liabilities: AQN's short term assets ($760.2M) do not cover its long term liabilities ($5.6B).
Debt to Equity History and Analysis
Debt Level: AQN's debt to equity ratio (73.7%) is considered high.
Reducing Debt: AQN's debt to equity ratio has reduced from 81.7% to 73.7% over the past 5 years.
Debt Coverage: AQN's debt is not well covered by operating cash flow (12.2%).
Interest Coverage: AQN's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Algonquin Power & Utilities's current dividend yield, its reliability and sustainability?
3.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AQN's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: AQN's dividend (3.68%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
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 (72.4%), 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 (79.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Arun Banskota (53 yo)
0.50
Tenure
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...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Operating Officer | 2yrs | US$1.74m | 0.00067% $ 86.1k | |
| Chief Development Officer | 13yrs | US$1.25m | 0.0097% $ 1.2m | |
| President | 0.50yr | no data | 0.0087% $ 1.1m | |
| Chief Financial Officer | 0.33yr | no data | 0.0013% $ 167.1k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 3.92yrs | no data | 0.0067% $ 856.1k | |
| Chief Compliance & Risk Officer | no data | no data | 0.00012% $ 15.4k | |
| Director of Corporate Communications | no data | no data | no data | |
| Chief Human Resources Officer | 1.17yrs | no data | no data | |
| Senior Vice President of Solar Development Group | 2yrs | no data | no data | |
| Senior Vice President of Wind Development | 1.83yrs | no data | no data | |
| Chief Governance Officer & Corporate Secretary | 3.83yrs | no data | 0.0055% $ 709.5k |
2.0yrs
Average Tenure
52yo
Average Age
Experienced Management: AQN's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | no data | 0.0087% $ 1.1m | |
| Independent Director | 3.92yrs | US$235.71k | 0.0027% $ 344.5k | |
| Independent Director | 6.25yrs | US$243.71k | 0.0025% $ 322.6k | |
| Independent Director | 1yr | US$137.57k | 0.0064% $ 826.5k | |
| Independent Director | 11.25yrs | US$218.44k | 0.0042% $ 533.4k | |
| Independent Chairman | 11.25yrs | US$281.97k | 0.0030% $ 386.9k | |
| Independent Director | 11.25yrs | US$237.24k | 0.0040% $ 520.6k | |
| Independent Director | 6.58yrs | US$230.53k | 0.0025% $ 325.2k | |
| Independent Director | 4.58yrs | US$218.43k | no data |
6.3yrs
Average Tenure
64yo
Average Age
Experienced Board: AQN's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 13.9%.
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$12.854b
- Shares outstanding: 597.03m
- Website: https://algonquinpower.com
Number of Employees
Location
- Algonquin Power & Utilities Corp.
- 354 Davis Road
- Suite 100
- Oakville
- Ontario
- L6J 2X1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AQN | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1997 |
| AQN | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1997 |
| 751 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:14 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.