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Algonquin Power & Utilities

Market Cap

CA$11.5b

Last Updated

2021/05/11 23:16 UTC

Data Sources

Company Financials +

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


Snowflake Analysis

Undervalued 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 +/- 3% a week.

Volatility Over Time: AQN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-4.2%

AQN

-0.6%

CA Integrated Utilities

0.7%

CA Market


1 Year Return

-0.4%

AQN

16.7%

CA Integrated Utilities

36.3%

CA Market

Return vs Industry: AQN underperformed the Canadian Integrated Utilities industry which returned 16.2% over the past year.

Return vs Market: AQN underperformed the Canadian Market which returned 35.5% over the past year.


Shareholder returns

AQNIndustryMarket
7 Day-4.2%-0.6%0.7%
30 Day-8.5%3.2%1.2%
90 Day-15.2%9.6%6.0%
1 Year3.9%-0.4%21.0%16.7%40.7%36.3%
3 Year72.9%51.0%42.0%27.6%28.5%16.3%
5 Year107.4%65.2%59.0%33.0%57.4%34.0%

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

Valuation

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

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AQN (CA$18.83) is trading below our estimate of fair value (CA$33.7)

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 (10.6x) compared to the North American Integrated Utilities industry average (21.6x).

PE vs Market: AQN is good value based on its PE Ratio (10.6x) compared to the Canadian market (16x).


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 is good value based on its PB Ratio (1.9x) compared to the XN Integrated Utilities industry average (2.1x).


Future Growth

How is Algonquin Power & Utilities forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-1.2%

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 (-1.2% per year).

Earnings vs Market: AQN's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: AQN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AQN's revenue (6.1% per year) is forecast to grow slower than the Canadian market (6.6% per year).

High Growth Revenue: AQN's revenue (6.1% 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 (9.3%).


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 13.3%.


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% 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?

4.38%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 12 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 15 202116 days from Ex DividendBuy in the next 47 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AQN's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Canadian market (1.5%).

High Dividend: AQN's dividend (4.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).


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 (91.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Arun Banskota (59 yo)

0.83

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

Experienced Management: AQN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: AQN's board of directors are considered experienced (5.8 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 16%.


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$11.521b
  • Shares outstanding: 611.84m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 23:16
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
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.