Algonquin Power & Utilities Corp. (AQN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Algonquin Power & Utilities Corp.

Emera, Inc.

Capital Power Corp.

Fortis, Inc.

Hydro One Ltd.

Northland Power, Inc.

ATCO Ltd.

TransAlta Corp.

Boralex, Inc.

Brookfield Renewable Partners LP

TransAlta Renewables, Inc.

Why is Algonquin Power & Utilities Corp. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 12.65% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 3.32% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 387.05
INVENTORY TURNOVER RATIO(HY) Highest at 9.51 times
NET SALES(Q) Highest at CAD 1,075.97 MM

With ROE of 2.95%, it has a very attractive valuation with a 0.97 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 5.74%, its profits have risen by 335.2% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 80.43%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.73% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Algonquin Power & Utilities Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Algonquin Power & Utilities Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Algonquin Power & Utilities Corp.

5.74%

-1.69

23.49%

S&P/TSX 60

29.8%

2.35

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.21%

EBIT Growth (5y)

12.65%

EBIT to Interest (avg)

1.47

Debt to EBITDA (avg)

8.74

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

0.20

Tax Ratio

55.47%

Dividend Payout Ratio

116.86%

Pledged Shares

Institutional Holding

80.43%

ROCE (avg)

3.32%

ROE (avg)

4.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.97

EV to EBIT

22.87

EV to EBITDA

12.44

EV to Capital Employed

0.99

EV to Sales

4.50

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

4.33%

ROE (Latest)

2.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 387.05

INVENTORY TURNOVER RATIO(HY)

Highest at 9.51 times

NET SALES(Q)

Highest at CAD 1,075.97 MM

PRE-TAX PROFIT(Q)

At CAD 140.74 MM has Grown at 79.2%

NET PROFIT(Q)

At CAD 123.52 MM has Grown at 51.64%

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.32% (YoY

CASH AND EQV(HY)

Lowest at CAD 122.28 MM

Here's what is working for Algonquin Power & Utilities Corp.

Interest Coverage Ratio

Highest at 387.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 1,075.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 1,075.97 MM has Grown at 27.49%

over average net sales of the previous four periods of CAD 843.94 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 140.74 MM has Grown at 79.2%

over average net sales of the previous four periods of CAD 78.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 123.52 MM has Grown at 51.64%

over average net sales of the previous four periods of CAD 81.45 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 9.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at CAD 148.42 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Algonquin Power & Utilities Corp.

Cash and Eqv

Lowest at CAD 122.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 16.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales