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.

Brookfield Renewable Partners LP

ATCO Ltd.

Northland Power, Inc.

TransAlta Corp.

Boralex, Inc.

TransAlta Renewables, Inc.

Why is Algonquin Power & Utilities Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 6.84% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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)

The company has declared Negative results for the last 7 consecutive quarters

PRE-TAX PROFIT(Q) At CAD -5.26 MM has Fallen at -112.74%
NET PROFIT(Q) At CAD 25.4 MM has Fallen at -59.8%
OPERATING CASH FLOW(Y) Lowest at CAD 621.36 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 3.60%, its profits have fallen by -134%

Underperformed the market in the last 1 year

The stock has generated a return of 3.60% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

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.

17.08%

-1.48

30.64%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.89%

EBIT Growth (5y)

8.34%

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

76.70%

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

1.09

EV to EBIT

22.50

EV to EBITDA

12.53

EV to Capital Employed

1.04

EV to Sales

4.69

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

4.60%

ROE (Latest)

3.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 119.26 MM has Grown at 158.93%

DIVIDEND PAYOUT RATIO(Y)

Highest at 140.31%

RAW MATERIAL COST(Y)

Fallen by -22.98% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 41.55 %

NET PROFIT(Q)

At CAD 102.34 MM has Grown at 69.05%

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 654.74 MM

CASH AND EQV(HY)

Lowest at CAD 160.64 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.11 times

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

Pre-Tax Profit

At CAD 119.26 MM has Grown at 158.93%

over average net sales of the previous four periods of CAD 46.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Operating Profit Margin

Highest at 41.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CAD 102.34 MM has Grown at 69.05%

over average net sales of the previous four periods of CAD 60.54 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend Payout Ratio

Highest at 140.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -22.98% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at CAD 654.74 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv

Lowest at CAD 160.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 8.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio