(AQN) Algonquin Power & Utilities - Ratings and Ratios

Algonquin Power & Utilities Corp. (TO:AQN) is a diversified utility company operating in the power and water sectors. The company is organized into two main business segments: the Regulated Services Group and the Hydro Group. Through these segments, Algonquin owns and operates a substantial portfolio of regulated utility assets, including electric distribution, water distribution, wastewater collection, and natural gas distribution systems. As of December 31, 2024, the company served approximately 1,265,000 customer connections across the United States, Canada, Bermuda, and Chile.

Algonquins regulated electric distribution and transmission systems are operational in Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, Oklahoma, and Bermuda, serving around 310,000 electric customers. Its water and wastewater utility systems cover Arizona, Arkansas, California, Illinois, Missouri, New York, Texas, and Chile, with approximately 577,000 customer connections. The companys natural gas distribution systems are present in Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire, New York, and the Canadian province of New Brunswick, serving about 378,000 natural gas customers.

In addition to its utility operations, Algonquin owns and operates generating assets with a gross capacity of 2.0 GW and holds investments in generating assets with a net capacity of 0.3 GW. The companys Hydro Group focuses on hydroelectric power generation, managing 14 facilities across Alberta, Ontario, New Brunswick, and Quebec. These hydroelectric assets have a combined gross generating capacity of 115 MW and a net capacity of 111 MW. Algonquin Power & Utilities Corp. was incorporated in 1988 and is headquartered in Oakville, Canada.

Ticker Symbol: AQN
Exchange: TO
Type: Common Stock
Country Origin: Canada
GICS Sub Industry: Renewable Electricity

3-Month Forecast (Based on Technical and Fundamental Data):

Technical Outlook: The stock is currently trading at $7.31, with a 20-day SMA of $7.18 and a 50-day SMA of $7.07, indicating a potential bullish trend in the short term. However, the 200-day SMA of $6.88 suggests a longer-term uptrend. The ATR of 0.22 indicates low volatility, which could lead to a period of consolidation. Support levels are likely to hold around $7.00, with resistance near $7.50.

Fundamental Outlook: The companys high P/E of 74.70 and negative RoE of -29.37 raise concerns about valuation and profitability. However, the forward P/E of 17.83 suggests investor optimism about future earnings. The P/B ratio of 0.89 indicates undervaluation relative to book value, while the P/S ratio of 2.47 reflects moderate revenue multiples. Over the next three months, the stocks performance will likely hinge on the companys ability to improve profitability and meet growth expectations.