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Fundamental analysis: Algonquin Power & Utilities Corp. (AQN)

Awarener score: 5.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Average) and growth (Average), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been growing at a low pace. It's been below average when measured against peer companies.
  • Algonquin Power & Utilities Corp. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks worse than most rivals.

Margins score: 9.0

  • AQN profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
  • Business profit on sales tends to be excellent. It's almost average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 6.3

  • Algonquin Power & Utilities Corp. profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very low step, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be in a weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was somewhat worse than rivals.
  • In the previous years, growth trend on total net profit has been very good, and weak when measured against peer companies.
  • Earnings per share have grown at a good rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 8.0

  • AQN managed to pay little to no income taxes on profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.8

  • Algonquin Power & Utilities Corp. usually gets good returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks more than average in relation to competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 4.6

  • AQN usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands encouraging in relation to rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came mediocre against competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
  • The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

  • Algonquin Power & Utilities Corp. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks great when measured against peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers longer than two months after the purchase. It ranks similar to industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's close to average when compared to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks close to average when compared to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 4.5

  • Algonquin Power & Utilities Corp. looks heavily expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains rather normal in relation to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands worse than most similar companies.
  • In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still substantially worse when measured against industry firms.
  • In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up close to average when compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks below average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains well ranked against peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.1


AQN logos

Company at a glance: Algonquin Power & Utilities Corp. (AQN)

Sector, industry: Utilities, Utilities—Renewable

Market Cap: 8.48 billions

Revenues TTM: 2.39 billions

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets. The company operates through two segments, Regulated Services Group and Renewable Energy Group. The Regulated Services Group segment operates a portfolio of rate-regulated utilities located in the United States, Canada, Chile, and Bermuda. Its utilities provide distribution services to approximately 1,093,000 customer connections in the electric, natural gas, and water and wastewater sectors The Renewable Energy Group segment generates and sells electrical energy, capacity, ancillary products, and renewable attributes produced by its portfolio of renewable and clean power generation facilities primarily in the United States and Canada. It owns and operates hydroelectric, wind, solar, and thermal facilities; and owns and operates a portfolio of clean energy and water infrastructure assets. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

Awarener score: 5.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Average) and growth (Average), and the company's inclination to return cash to the stockholders (Lacking).