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AQN

Algonquin Power & UtilitiesTSX:AQN Stock Report

Market Cap

CA$11.7b

7D

-1.3%

1Y

-15.3%

Updated

04 Dec, 2021

Data

Company Financials +
AQN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health1/6
Dividends4/6

AQN Stock Overview

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.

Algonquin Power & Utilities Competitors

ATCO

TSX:ACO.X

CA$4.6b

Just Energy Group

TSXV:JE

CA$64.9m

American Water Works Company

NYSE:AWK

US$31.2b

Eversource Energy

NYSE:ES

US$29.3b

Price History & Performance

Summary of all time highs, changes and price drops for Algonquin Power & Utilities
Historical stock prices
Current Share PriceCA$17.37
52 Week HighCA$22.67
52 Week LowCA$17.16
Beta0.17
1 Month Change-2.64%
3 Month Change-11.42%
1 Year Change-15.31%
3 Year Change20.12%
5 Year Change55.65%
Change since IPO73.70%

Recent News & Updates

Dec 01
Here's Why I Think Algonquin Power & Utilities (TSE:AQN) Is An Interesting Stock

Here's Why I Think Algonquin Power & Utilities (TSE:AQN) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Sep 12
Algonquin Power & Utilities (TSE:AQN) Has A Somewhat Strained Balance Sheet

Algonquin Power & Utilities (TSE:AQN) Has A Somewhat Strained Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 21
Does Algonquin Power & Utilities (TSE:AQN) Deserve A Spot On Your Watchlist?

Does Algonquin Power & Utilities (TSE:AQN) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

AQNCA Integrated UtilitiesCA Market
7D-1.3%0.7%-2.2%
1Y-15.3%1.6%18.5%

Return vs Industry: AQN underperformed the Canadian Integrated Utilities industry which returned -1.1% over the past year.

Return vs Market: AQN underperformed the Canadian Market which returned 20.3% over the past year.

Price Volatility

Is AQN's price volatile compared to industry and market?
AQN volatility
AQN Average Weekly Movement2.0%
Integrated Utilities Industry Average Movement2.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.6%

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.

About the Company

FoundedEmployeesCEOWebsite
19883,441Arun Banskotahttps://algonquinpower.com

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. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately 2.1 gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems.

Algonquin Power & Utilities Fundamentals Summary

How do Algonquin Power & Utilities's earnings and revenue compare to its market cap?
AQN fundamental statistics
Market CapUS$9.12b
Earnings (TTM)US$584.54m
Revenue (TTM)US$2.18b

15.6x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AQN income statement (TTM)
RevenueUS$2.18b
Cost of RevenueUS$1.34b
Gross ProfitUS$839.21m
ExpensesUS$254.67m
EarningsUS$584.54m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.87
Gross Margin38.46%
Net Profit Margin26.79%
Debt/Equity Ratio101.0%

How did AQN perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

68%

Payout Ratio

Does AQN pay a reliable dividends?

See AQN dividend history and benchmarks
When do you need to buy AQN by to receive an upcoming dividend?
Algonquin Power & Utilities dividend dates
Ex Dividend DateDec 30 2021
Dividend Pay DateJan 14 2022
Days until Ex dividend26 days
Days until Dividend pay date41 days

Does AQN pay a reliable dividends?

See AQN dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AQN (CA$17.37) is trading below our estimate of fair value (CA$43.01)

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 (15.6x) compared to the North American Integrated Utilities industry average (21.3x).

PE vs Market: AQN is poor value based on its PE Ratio (15.6x) compared to the Canadian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: AQN is good value based on its PEG Ratio (0.5x)


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 11 analysts?

29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQN's forecast earnings growth (29.5% per year) is above the savings rate (1.6%).

Earnings vs Market: AQN's earnings (29.5% per year) are forecast to grow faster than the Canadian market (10.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AQN's revenue (13.1% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: AQN's revenue (13.1% 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?

49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQN has a large one-off gain of $356.5M impacting its September 30 2021 financial results.

Growing Profit Margin: AQN's current net profit margins (26.8%) are lower than last year (27.2%).


Past Earnings Growth Analysis

Earnings Trend: AQN's earnings have grown significantly by 49.4% per year over the past 5 years.

Accelerating Growth: AQN's earnings growth over the past year (32.3%) is below its 5-year average (49.4% per year).

Earnings vs Industry: AQN earnings growth over the past year (32.3%) exceeded the Integrated Utilities industry 10.6%.


Return on Equity

High ROE: AQN's Return on Equity (7.7%) is considered low.


Financial Health

How is Algonquin Power & Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: AQN's short term assets ($917.8M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: AQN's short term assets ($917.8M) do not cover its long term liabilities ($8.3B).


Debt to Equity History and Analysis

Debt Level: AQN's net debt to equity ratio (98.2%) is considered high.

Reducing Debt: AQN's debt to equity ratio has reduced from 105.1% to 101% over the past 5 years.

Debt Coverage: AQN's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: AQN's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

5.03%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 04 2021Ex Dividend DateDec 30 2021Dividend Pay DateJan 14 202215 days from Ex DividendBuy in the next 26 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AQN's dividend (5.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: AQN's dividend (5.03%) is in the top 25% of dividend payers in the Canadian market (4.72%)


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 (67.8%), AQN's dividend payments are 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 (90.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Arun Banskota (60 yo)

1.42yrs

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 ($USD2.95M) is about average for companies of similar size in the Canadian market ($USD3.45M).

Compensation vs Earnings: Insufficient data to compare Arun's compensation with company performance.


Leadership Team

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


Board Members

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 12.5%.


Top Shareholders

Company Information

Algonquin Power & Utilities Corp.'s 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$11.671b
  • Shares outstanding: 671.89m
  • Website: https://algonquinpower.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 00:01
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.