Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. Fundamental Analysis
Algonquin Power & Utilities Corp. (AQN) shows weak financial fundamentals with a PE ratio of 27.22, profit margin of 7.42%, and ROE of 3.88%. The company generates $2.4B in annual revenue with weak year-over-year growth of -3.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.5/100 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's fundamental strength across five key dimensions:
Efficiency Score
WeakAQN struggles to generate sufficient returns from assets.
Valuation Score
ModerateAQN shows balanced valuation metrics.
Growth Score
WeakAQN faces weak or negative growth trends.
Financial Health Score
ModerateAQN shows balanced financial health with some risks.
Profitability Score
WeakAQN struggles to sustain strong margins.
Key Financial Metrics
Is AQN Expensive or Cheap?
P/E Ratio
AQN trades at 27.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AQN's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Algonquin Power & Utilities Corp. at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.67 times EBITDA. This is generally considered low.
How Well Does AQN Make Money?
Net Profit Margin
For every $100 in sales, Algonquin Power & Utilities Corp. keeps $7.42 as profit after all expenses.
Operating Margin
Core operations generate 20.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.88 in profit for every $100 of shareholder equity.
ROA
Algonquin Power & Utilities Corp. generates $1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Algonquin Power & Utilities Corp. generates strong operating cash flow of $610.79M, reflecting robust business health.
Free Cash Flow
Algonquin Power & Utilities Corp. generates weak or negative free cash flow of $-173.32M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.23 in free cash annually.
FCF Yield
AQN converts -3.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AQN Stacks Against Its Sector Peers
| Metric | AQN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.22 | 19.69 | Worse (Expensive) |
| ROE | 3.88% | 936.00% | Weak |
| Net Margin | 7.42% | 8814.00% | Weak |
| Debt/Equity | 1.41 | 1.49 | Neutral |
| Current Ratio | 1.00 | 1.50 | Neutral |
| ROA | 1.28% | -6168.00% (disorted) | Weak |
AQN outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
-2.56%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-277.66%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-48.57%
Industry Style: Defensive, Dividend, Income
Declining