Algonquin Power & Utilities Corp. Common Shares (AQN)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Mr. Market was asking $5.13 for Algonquin Power & Utilities, a $4.9 billion utility serving about 1,272,000 customer connections. Regulated utilities can be decent businesses, but this one currently earns poor returns: FairStock calculations show ROE of 2.49%, ROCE of 2.37%, and debt-to-equity of 1.34. The latest filed quarter, fiscal Q2 2026, had revenue of $543.9M and net income of just $3.6M—a 0.66% margin. That is not the earning power I want. Free cash flow is negative: -$58.9M trailing twelve months, a -1.2% FCF yield, so the 4.86% dividend is not covered by internally generated cash as presented. The balance sheet also worries me. FairStock's Altman Z-Score is 0.08, deep in distress territory, and the Piotroski F-Score is 4/9. On valuation, P/B of 0.89 looks undemanding, and the Graham Number of $5.69 gives only a 9.84% margin of safety. But P/E of 21.38 is not cheap for a low-return utility. EV/EBITDA of 11.84 is also not a bargain. The supplied profit-growth figure is -85.06%, though the latest filed quarter is the hard evidence. The Lynch screen is none because there are only 0 years of filed results, needing 3. Regulated service territories provide some protection, but poor returns, negative free cash flow, and leverage mean the margin of safety is thin; tangible improvement in earnings and cash flow is needed.

In plain English: Algonquin Power & Utilities is a utility company that serves about 1.27 million customer connections in the United States, Canada, Bermuda, and Chile. The business looks weak right now: in its latest quarter it earned only $3.6 million on $543.9 million of revenue, and it is spending more cash than it brings in. At $5.13 a share, the price looks roughly fair compared with its accounting value and profits, not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer