Algonquin Power & Utilities Corp Stock Analysis:
Scotiabank Capital maintains the Sector Perform rating for Algonquin Power & Utilities Corp. (AQN:CA) and keeps the target price at $14.75 on the company’s stock.
Based on the stock predictions made for Algonquin Power & Utilities Corp by 9 analysts, the company’s average 12-month target price is CAD 12.09. Analysts give Algonquin Power & Utilities Corp an average Buy rating. Algonquin Power & Utilities Corp’s stock analysis by Stock Target Advisor is Slightly Bullish and is based on 7 positive and 4 negative signals. The stock price of Algonquin Power & Utilities Corp. was CAD 9.70 at the most recent closing. The stock price of Algonquin Power & Utilities Corp changed by +0.50% over the previous week, -0.08% over the previous month, and -44.70% over the previous year.
Earnings:
Investors are eager to see strong performance from Algonquin Power & Utilities as it prepares to announce its next earnings. The company is expected to announce earnings of $0.20 per share, which would show a decrease of 4.76% compared to the previous year. Additionally, the latest estimates predict quarterly revenue of $722.17 million, an increase of 21.41% from the previous year’s period. It’s worth noting that analyst predictions for Algonquin Power & Utilities can change frequently, and any upward revisions may indicate a positive outlook on the company’s future success and profitability.
Fundamental Stock Analysis:
Positive Fundamentals:
Outstanding total returns:
The stock is in the top quartile and has beaten its sector rivals over the previous five years (for a hold duration of at least 12 months).
Priced below what the book would bear:
On a price to book value metric, the stock is trading at a low price compared to its peers and is in the top quartile. Although it can be priced too low, be sure there isn’t a specific explanation by looking at its financial performance.
Small debt:
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. However, keep an eye on the news and consider the industry. This is occasionally low because there is no room for future expansion at the organization.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
A Positive free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Superior growth in earnings:
In the preceding five years, this stock’s profits growth was in the top quartile for its industry.
Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.
Negative Fundamentals:
Excessively expensive in relation to earnings:
The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Poor asset return:
In comparison to its peers, the management of the company produced a lower median return on assets during the past four quarters.
Priced excessively based on free cash flow:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Conclusion:
The fundamental stock analysis for Algonquin Power & Utilities Corp (AQN:CA) is Slightly Bullish with a score of 6.4 out of 10, where 0 is very bearish and 10 very bullish.
About Algonquin Power & Utilities:
Algonquin Power & Utilities Corp. is a company that owns and operates a diverse range of utility assets through its subsidiaries. This includes both regulated and non-regulated generation, distribution, and transmission utilities. The company has two main business segments: the Regulated Services Group and the Renewable Energy Group. The Regulated Services Group manages a portfolio of rate-regulated utilities in the US, Canada, Chile, and Bermuda, which provide distribution services to around 1,093,000 customers in various sectors such as electricity, natural gas, and water and wastewater. The Renewable Energy Group, on the other hand, generates and sells energy, capacity, ancillary products, and renewable attributes from its renewable and clean power generation facilities in the US and Canada. This includes hydroelectric, wind, solar, and thermal facilities, as well as clean energy and water infrastructure assets. The company was established in 1988, and its headquarters is located in Oakville, Canada.
