Algonquin Power & Utilities Corp. (AQNB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Algonquin Power & Utilities Corp. (AQNB) Utility Operations & Dividend Profile

Algonquin Power & Utilities Corp. operates as an investment holding company, focusing on regulated utilities and renewable energy. With operations in electric, natural gas, water, and renewable generation, the company serves a broad customer base across North America, balancing stable regulated earnings with growth in the renewable energy sector.

What Is the Investment Thesis for AQNB?

The company's regulated services provide a stable revenue base, while its renewable energy segment offers significant growth potential. With a dividend yield of 4.31%, AQNB offers an attractive income stream for investors. The company's focus on expanding its renewable energy portfolio aligns with global trends towards sustainable energy, creating long-term growth opportunities. However, investors may want to evaluate potential risks such as regulatory changes and competition within the renewable energy sector. The company's P/E ratio of 29.77 suggests a premium valuation, reflecting investor expectations for future growth.

Based on FMP financials and quantitative analysis

AQNB Key Highlights

Market Cap of $18.89B reflects substantial investor confidence in Algonquin's diversified utility and renewable energy portfolio.

• P/E Ratio of 29.77 indicates a premium valuation, suggesting expectations of future earnings growth.
• Profit Margin of 6.7% demonstrates the company's ability to generate profit from its revenues.
• Gross Margin of 36.7% highlights the efficiency of Algonquin's operations in managing its cost of goods and services.
• Dividend Yield of 4.31% provides an attractive income stream for investors, supported by stable regulated utility earnings.

Who Are AQNB's Competitors?

AQNB 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

What Are AQNB's Key Strengths?

Diversified business model with regulated utilities and renewable energy.

• Stable revenue stream from regulated operations.
• Geographic diversification across North America.
• Commitment to sustainable energy solutions.

What Are AQNB's Weaknesses?

Exposure to regulatory risks in multiple jurisdictions.

• Dependence on government incentives for renewable energy projects.
• Capital intensive business model.
• Profit margin lower than some competitors.

What Could Drive AQNB Stock Higher?

Investments in renewable energy projects driving long-term growth.

• Regulatory approvals for infrastructure upgrades in regulated utilities.
• Potential acquisitions of smaller utility companies to expand market presence.
• Government incentives and tax credits supporting renewable energy development.

What Are the Key Risks for AQNB?

Financial-distress signal — its Altman Z-Score of 1.29 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.
• Changes in government regulations impacting renewable energy subsidies.
• Increased competition in the renewable energy sector.
• Fluctuations in energy prices affecting profitability.
• Rising interest rates increasing the cost of capital.
• Weather-related events impacting utility infrastructure and operations.

What Are the Growth Opportunities for AQNB?

• Expansion of Renewable Energy Portfolio: Algonquin has the opportunity to significantly expand its renewable energy portfolio through strategic acquisitions and development projects. The global renewable energy market is projected to reach $2.15 trillion by 2030, presenting a substantial growth opportunity. By investing in wind, solar, and hydro projects, Algonquin can capitalize on increasing demand for clean energy and benefit from government incentives and tax credits. This expansion will enhance the company's environmental profile and contribute to long-term sustainable growth.
• Infrastructure Investments in Regulated Utilities: Algonquin can drive growth by investing in infrastructure upgrades and expansions within its regulated utility businesses. Aging infrastructure requires modernization to improve reliability and efficiency. Capital expenditures on these projects are typically recovered through regulated rates, providing a predictable return on investment. The increasing demand for water and electricity in growing communities also necessitates infrastructure expansion. These investments will enhance the quality of service and support long-term growth in the regulated segment.
• Strategic Acquisitions of Utility Companies: Algonquin can pursue strategic acquisitions of smaller utility companies to expand its geographic footprint and customer base. The utility sector is consolidating, creating opportunities for larger players to acquire smaller operators. These acquisitions can provide synergies and economies of scale, improving operational efficiency and profitability. Careful due diligence and integration are essential to ensure successful acquisitions. Expanding into new regions can also diversify the company's regulatory risk.
• Development of Energy Storage Solutions: Algonquin can invest in the development and deployment of energy storage solutions to enhance the reliability and flexibility of its renewable energy assets. Energy storage technologies, such as batteries, can store excess energy generated during peak production periods and release it when demand is high. This can help mitigate the intermittency of renewable energy sources and improve grid stability. The energy storage market is expected to grow significantly in the coming years, driven by increasing adoption of renewable energy.
• Leveraging Government Incentives and Tax Credits: Algonquin can maximize its growth potential by leveraging government incentives and tax credits available for renewable energy projects. Governments around the world are offering various incentives to promote the development of clean energy. These incentives can significantly reduce the cost of renewable energy projects and improve their financial viability. Algonquin can actively seek out and utilize these incentives to accelerate its renewable energy expansion plans.

What Are AQNB's Competitive Advantages?

• Regulated utility operations provide a stable and predictable revenue stream.
• Diversified portfolio of renewable energy assets reduces reliance on any single energy source.
• Long-term contracts with customers provide revenue visibility.
• Geographic diversification across North America reduces regional risk.

What Does AQNB Do?

Algonquin Power & Utilities Corp., founded on August 1, 1988, is an investment holding company headquartered in Oakville, Canada. The company operates through two primary segments: the Regulated Services Group and the Renewable Energy Group. The Regulated Services Group focuses on the ownership and operation of utility systems, including electric, natural gas, water distribution, and wastewater collection. These regulated assets provide a stable and predictable revenue stream. The Renewable Energy Group is dedicated to the operation of a diversified portfolio of renewable and thermal electric generation assets. This segment includes facilities powered by wind, solar, hydro, and thermal sources, reflecting a commitment to sustainable energy solutions. Algonquin’s strategic focus is on expanding its renewable energy footprint while maintaining reliable utility services. The company's operations span across North America, serving residential, commercial, and industrial customers. Through strategic acquisitions and organic growth, Algonquin has established itself as a key player in both the regulated utility and renewable energy sectors, balancing the stability of regulated earnings with the growth potential of renewable energy.

What Products and Services Does AQNB Offer?

• Operates regulated electric utility systems.
• Manages natural gas distribution networks.
• Provides water distribution services.
• Handles wastewater collection and treatment.
• Generates electricity from renewable sources like wind, solar, and hydro.
• Operates thermal electric generation facilities.
• Invests in energy and water infrastructure projects.

How Does AQNB Make Money?

• Generates revenue through regulated rates for electric, natural gas, and water services.
• Sells electricity generated from renewable and thermal power plants.
• Invests in and operates long-term infrastructure assets.
• Expands its asset base through acquisitions and organic growth.

What Industry Does AQNB Operate In?

Algonquin Power & Utilities Corp. operates within the utilities sector, specifically in regulated electric and renewable energy. The utilities sector is characterized by stable demand and regulated pricing, providing a relatively predictable revenue stream. The renewable energy segment is experiencing rapid growth, driven by increasing environmental awareness and government incentives. Algonquin competes with other utility companies and renewable energy developers. The industry is also influenced by technological advancements, such as smart grids and energy storage solutions. Algonquin's diversified business model allows it to capitalize on both the stability of regulated utilities and the growth potential of renewable energy.

Who Are AQNB's Key Customers?

• Residential customers who receive electricity, natural gas, and water services.
• Commercial customers, including businesses and institutions.
• Industrial customers requiring large volumes of electricity and water.
• Municipalities and government entities.

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. AQNB has traded publicly since 2019.

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. AQNB 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 -2.4%, 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 3.7%, the inverse of the P/E and a quick read on earnings relative to price.

AQNB Valuation & Market Position

Relative to its peer group, AQNB's quantitative score of 56/100 is roughly in line with the peer average of 53/100.

Quarterly Financial Performance: Algonquin Power & Utilities Corp.

Revenue for Algonquin Power & Utilities Corp. came in at $543.9M during Q2 FY2026, a 31.4% contraction versus the preceding quarter. 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, AQNB averaged $0.05 in diluted EPS.

Algonquin Power & Utilities Corp.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.29 places it in the distress zone, a signal of elevated financial risk.

AQNB Financials

AQNB Latest News

No recent news available for AQNB.

AQNB Analyst Consensus

AQNB MoonshotScore

AQNB Utilities Stock FAQ

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

Official Resources