Algonquin Power & Utilities Corp (AGQPF) Stock Analysis

Algonquin Power & Utilities Corp (AGQPF) Utility Operations & Dividend Profile

Algonquin Power & Utilities Corp (AGQPF) is a diversified utility company focused on renewable energy and regulated services. With over $16 billion in assets, the company provides sustainable energy and water solutions to over one million customers in the United States and Canada, operating through its Regulated Services and Renewable Energy groups.

What Is the Investment Thesis for AGQPF?

The company's regulated services provide a stable revenue base, while its renewable energy portfolio offers significant growth potential. With a market capitalization of $11.11 billion and a dividend yield of 4.16%, AGQPF offers a blend of income and growth. Key catalysts include the expansion of its renewable energy projects and strategic acquisitions in the utility sector. Potential risks include regulatory changes and fluctuations in energy prices. The company's commitment to sustainability and its established presence in the utility market position it for long-term success.

Based on FMP financials and quantitative analysis

AGQPF Key Highlights

Market Cap of $11.11B, indicating a significant presence in the utility sector.

• P/E Ratio of 29.77, reflecting investor expectations of future earnings growth.
• Profit Margin of 7.4%, demonstrating the company's ability to generate profits from its operations.
• Gross Margin of 42.3%, showcasing efficient cost management in its service delivery.
• Dividend Yield of 4.16%, offering an attractive income stream for investors.

Who Are AGQPF's Competitors?

AGQPF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are AGQPF's Key Strengths?

Diversified business model with regulated utility services and renewable energy generation.

• Stable revenue streams from long-term contracts and regulated operations.
• Strong focus on sustainability and renewable energy.
• Experienced management team with a proven track record.

What Are AGQPF's Weaknesses?

Exposure to regulatory risks and changes in government policies.

• Dependence on long-term contracts, which can limit flexibility.
• Capital-intensive business model requires significant investment.
• Sensitivity to fluctuations in energy prices and interest rates.

What Could Drive AGQPF Stock Higher?

Expansion of renewable energy projects, increasing generation capacity and revenue.

• Strategic acquisitions of utility companies, expanding geographic footprint and customer base.
• Potential regulatory approvals for new infrastructure projects, unlocking growth opportunities.
• Investment in grid modernization and energy storage solutions, improving efficiency and reliability.
• Growing demand for clean energy and sustainable water solutions, driving long-term growth.

What Are the Key Risks for AGQPF?

Financial-distress signal — its Altman Z-Score of 0.74 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 29.77 runs well above the Utilities sector’s ~16.60x, leaving little room for a miss.
• Regulatory changes and changes in government policies affecting the utility sector.
• Fluctuations in energy prices and interest rates impacting profitability.
• Increasing competition from other utility companies and renewable energy developers.
• Dependence on long-term contracts, which can limit flexibility.
• Capital-intensive business model requiring significant investment.

What Are the Growth Opportunities for AGQPF?

• Expansion of Renewable Energy Portfolio: AGQPF has the opportunity to expand its renewable energy portfolio through strategic acquisitions and organic development projects. The global renewable energy market is projected to reach $1.1 trillion by 2027, driven by increasing demand for clean energy and supportive government policies. By investing in wind, solar, and hydroelectric projects, AGQPF can capitalize on this growth and increase its revenue and earnings.
• Strategic Acquisitions in the Utility Sector: AGQPF can pursue strategic acquisitions in the utility sector to expand its geographic footprint and customer base. The utility sector is consolidating, with larger companies acquiring smaller players to achieve economies of scale and improve efficiency. By acquiring complementary businesses, AGQPF can enhance its market position and create synergies.
• Investment in Grid Modernization: AGQPF can invest in grid modernization projects to improve the reliability and efficiency of its electricity transmission and distribution systems. The aging infrastructure in many parts of the United States and Canada requires significant investment to ensure reliable power delivery. By upgrading its grid infrastructure, AGQPF can reduce outages, improve energy efficiency, and enhance customer satisfaction.
• Development of Energy Storage Solutions: AGQPF can develop energy storage solutions to enhance the flexibility and reliability of its renewable energy projects. Energy storage technologies, such as batteries, can store excess energy generated by wind and solar farms and release it when demand is high. By integrating energy storage into its renewable energy projects, AGQPF can increase their value and competitiveness.
• Focus on Sustainable Water Solutions: AGQPF can expand its focus on sustainable water solutions to address the growing water scarcity challenges in many parts of the world. The company can invest in water treatment and desalination technologies to provide clean and reliable water supplies to communities and industries. By offering sustainable water solutions, AGQPF can diversify its business and contribute to environmental sustainability.

What Threats Does AGQPF Face?

• Increasing competition from other utility companies and renewable energy developers.
• Changes in environmental regulations and carbon pricing policies.
• Technological disruptions and the emergence of new energy sources.
• Economic downturns and fluctuations in energy demand.

What Are AGQPF's Competitive Advantages?

• Regulated utility services provide a natural monopoly, limiting competition.
• Long-term contracts for renewable energy generation ensure stable revenue streams.
• Diversified business model reduces risk and enhances stability.
• Strong focus on sustainability and renewable energy aligns with growing market trends.

What Does AGQPF Do?

Algonquin Power & Utilities Corp (AGQPF), operating as Liberty, is a diversified international generation, transmission, and distribution utility with a strong emphasis on renewable energy. Founded with a vision to provide sustainable and reliable utility services, the company has grown to manage over $16 billion in total assets. AGQPF operates through two primary business groups: the Regulated Services Group and the Renewable Energy Group. The Regulated Services Group focuses on providing essential water, electricity, and natural gas services to residential, commercial, and industrial customers. The Renewable Energy Group develops, owns, and operates a portfolio of long-term contracted wind, solar, hydroelectric, and thermal generating facilities. AGQPF serves over one million customer connections, primarily in the United States and Canada. The company is committed to delivering safe, secure, reliable, cost-effective, and sustainable energy and water solutions. AGQPF's strategic focus on renewable energy positions it to capitalize on the growing demand for clean energy sources and aligns with global efforts to reduce carbon emissions. The company continues to expand its renewable energy portfolio through strategic acquisitions and organic development projects, reinforcing its commitment to sustainability and long-term value creation.

What Products and Services Does AGQPF Offer?

• Generates electricity through renewable sources like wind, solar, and hydroelectric.
• Transmits electricity to distribution networks.
• Distributes electricity to residential, commercial, and industrial customers.
• Provides regulated water services.
• Provides regulated natural gas services.
• Develops and operates long-term contracted renewable energy facilities.

How Does AGQPF Make Money?

• Generates revenue through regulated utility services, providing stable and predictable cash flows.
• Secures long-term contracts for renewable energy generation, ensuring a steady revenue stream.
• Invests in renewable energy projects and utility infrastructure, driving long-term growth.
• Manages its assets efficiently to minimize costs and maximize profitability.

What Industry Does AGQPF Operate In?

Algonquin Power & Utilities Corp operates within the renewable utilities industry, which is experiencing significant growth due to increasing demand for clean energy and supportive government policies. The industry is characterized by long-term contracts, stable cash flows, and high capital intensity. AGQPF competes with other utility companies and renewable energy developers. The company's diversified business model, which includes both regulated services and renewable energy generation, provides a competitive advantage. The market is driven by factors such as technological advancements, environmental regulations, and the increasing cost-competitiveness of renewable energy sources.

Who Are AGQPF's Key Customers?

• Residential customers who receive electricity, water, and natural gas services.
• Commercial customers, including businesses and institutions.
• Industrial customers, such as manufacturers and factories.
• Municipalities and government entities.

Return on equity for Algonquin Power & Utilities Corp stands at 3.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. AGQPF trades at a trailing price-to-earnings ratio of 29.77, above the Utilities sector average of ~16.60x. Its free cash flow yield is -2.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.8%, the inverse of the P/E and a quick read on earnings relative to price.

AGQPF Revenue & Earnings Trend

In Q2 FY2026, AGQPF generated $543.9M in top-line revenue, marking a sequential decrease of 31.4%. The company recorded net income of $3.6M, with diluted EPS of $0.00. Quarter-over-quarter revenue has been mixed, typical for a unknown company operating in Utilities. Across the four most recent quarters, AGQPF averaged $0.05 in diluted EPS.

Company Profile

Algonquin Power & Utilities Corp operates in the Diversified Utilities industry within the Utilities sector. It is headquartered in Oakville, CA. The company is led by CEO Roderick K. West. AGQPF has traded publicly since 2021.

Algonquin Power & Utilities Corp's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.74 places it in the distress zone, a signal of elevated financial risk.

Algonquin Power & Utilities Corp has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 12.1% above estimates on average.

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What Investors Ask About Algonquin Power & Utilities Corp (AGQPF) — Utilities

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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