Algonquin Power & Utilities Corp. (NYSE: AQN)

Sector: Utilities Industry: Utilities - Diversified CIK: 0001174169
Market Cap 8.39 Bn
P/B 1.81
P/E -225.33
P/S 3.51
ROIC (Qtr) 2.75
Div Yield % 2.96
Rev 1y % (Qtr) 1.66
Total Debt (Qtr) 6.43 Bn
Debt/Equity (Qtr) 1.39
Add ratio to table...

About

Investment thesis

Bull case

  • Operating cash flow of 465.72M provides strong 35.95x coverage of stock compensation 12.96M, indicating sustainable incentive practices.
  • Robust tangible asset base of 12.40B provides 58.37x coverage of working capital 212.50M, indicating strong operational backing.
  • Long-term investments of 209.20M provide solid 0.98x backing of working capital 212.50M, showing strategic capital allocation.
  • Free cash flow of 717.85M provides healthy 0.77x coverage of current liabilities 934.20M, showing strong operational health.
  • Tangible assets of 12.40B provide robust 21.76x coverage of other current liabilities 570M, indicating strong asset backing.

Bear case

  • Operating cash flow of 465.72M barely covers its investment activities of 2.17B, with a coverage ratio of 0.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 62.20M against inventory of 226.60M, the 0.27 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 465.72M provides thin coverage of dividend payments of (201.52M) with a -2.31 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 62.20M provide limited coverage of acquisition spending of 1.96B, which is 0.03x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 546.20M relative to inventory of 226.60M (2.41 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SRE Sempra 45.16 Bn 45.90 4.31 32.69 Bn
2 BIP Brookfield Infrastructure Partners L.P. 19.75 Bn 57.75 0.89 65.44 Bn
3 AES Aes Corp 10.89 Bn 16.56 0.83 31.90 Bn
4 AQN Algonquin Power & Utilities Corp. 8.39 Bn -225.33 3.51 6.43 Bn
5 AVA Avista Corp 2.94 Bn 19.71 2.18 3.09 Bn
6 UTL Unitil Corp 0.89 Bn 17.81 1.67 0.93 Bn
7 CIG Energy Co Of Minas Gerais 0.00 Bn 0.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.06 0.69
EV to Cash from Ops. EV/CFO 31.48 19.02
EV to Debt EV to Debt 2.28 1.58
EV to EBIT EV/EBIT 30.48 20.34
EV to EBITDA EV/EBITDA 16.09 11.94
EV to Free Cash Flow [EV/FCF] EV/FCF 20.42 -22.87
EV to Market Cap EV to Market Cap 1.75 2.15
EV to Revenue EV/Rev 6.14 3.99
Price to Book Value [P/B] P/B 1.81 2.48
Price to Earnings [P/E] P/E -225.33 -11.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.18 1.04
Dividend Payout Ratio % Div Payout % (Qtr) -650.00 -25.27
Dividend per Basic Share Div per Share (Qtr) 0.20 1.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 20.86 -135.45
Interest Coverage Int. cover (Qtr) 1.60 2.23
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 127.07 17.33
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.33 81.54
Dividend Growth (1y) % Div 1y % (Qtr) -57.14 -0.35
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 89.01 98.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.26 14.34
EBIT Growth (1y) % EBIT 1y % (Qtr) 178.38 41.17
EBT Growth (1y) % EBT 1y % (Qtr) 120.67 73.58
EPS Growth (1y) % EPS 1y % (Qtr) 97.41 56.76
FCF Growth (1y) % FCF 1y % (Qtr) 341.70 62.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 50.11 13.93
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.20
Cash Payout Ratio Cash Payout (Qtr) 0.99 0.23
Cash Ratio Cash Ratio (Qtr) 0.07 0.10
Current Ratio Curr Ratio (Qtr) 1.23 0.98
Debt to Equity Ratio Debt/Equity (Qtr) 1.39 4.25
Interest Cover Ratio Int Coverage (Qtr) 1.60 2.23
Times Interest Earned Times Interest Earned (Qtr) 1.60 2.23
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 36.80 38.38
EBIT Margin % EBIT Margin % (Qtr) 20.15 22.44
EBT Margin % EBT Margin % (Qtr) 7.57 11.60
Gross Margin % Gross Margin % (Qtr) 38.20 37.77
Net Profit Margin % Net Margin % (Qtr) -1.60 7.30