Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. Fundamental Analysis
Algonquin Power & Utilities Corp. (AQN-PA.TO) shows weak financial fundamentals with a PE ratio of -531.74, profit margin of -1.12%, and ROE of -0.57%. The company generates $2.4B in annual revenue with weak year-over-year growth of -14.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -3.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AQN-PA.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakAQN-PA.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAQN-PA.TO trades at attractive valuation levels.
Growth Score
WeakAQN-PA.TO faces weak or negative growth trends.
Financial Health Score
ModerateAQN-PA.TO shows balanced financial health with some risks.
Profitability Score
WeakAQN-PA.TO struggles to sustain strong margins.
Key Financial Metrics
Is AQN-PA.TO Expensive or Cheap?
P/E Ratio
AQN-PA.TO trades at -531.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AQN-PA.TO's PEG of -7.65 indicates potential undervaluation.
Price to Book
The market values Algonquin Power & Utilities Corp. at 3.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.27 times EBITDA. This is generally considered low.
How Well Does AQN-PA.TO Make Money?
Net Profit Margin
For every $100 in sales, Algonquin Power & Utilities Corp. keeps $-1.12 as profit after all expenses.
Operating Margin
Core operations generate 20.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.57 in profit for every $100 of shareholder equity.
ROA
Algonquin Power & Utilities Corp. generates $-0.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Algonquin Power & Utilities Corp. produces operating cash flow of $470.91M, showing steady but balanced cash generation.
Free Cash Flow
Algonquin Power & Utilities Corp. generates weak or negative free cash flow of $-362.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.47 in free cash annually.
FCF Yield
AQN-PA.TO converts -2.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-531.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AQN-PA.TO Stacks Against Its Sector Peers
| Metric | AQN-PA.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -531.74 | 20.07 | Better (Cheaper) |
| ROE | -0.57% | 911.00% | Weak |
| Net Margin | -1.12% | 644.00% | Weak |
| Debt/Equity | 1.39 | 1.50 | Neutral |
| Current Ratio | 1.23 | 1.49 | Neutral |
| ROA | -0.19% | -324.00% (disorted) | Weak |
AQN-PA.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Algonquin Power & Utilities Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.47%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-277.66%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-46.16%
Industry Style: Defensive, Dividend, Income
Declining