TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.24
+0.14 (1.73%)
as of Jun 4, 2026, 6:21:20 pm Market Open.
1398 watching
0
Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN-T) has seen a significant transformation recently with a strategic focus on regulated utilities, moving away from its less successful renewable energy ventures. Many experts highlight that the company is undergoing a multi-year turnaround, with new management actively working to improve the business and restore investor confidence after a rough patch that included dividend cuts and restructuring challenges. The analyst community is becoming increasingly optimistic, as AQN has started to show promising technical signs and several upgrades have been issued recently. Although concerns about high debt levels and previous mismanagement remain, many believe that AQN's shift toward a more stable utility model will enhance its growth potential and generate predictable income for investors. There’s cautious optimism about its future, with some viewing it as a potential takeover target given its current valuation relative to peers.

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Consensus
Positive
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Valuation
Undervalued
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HOLD
3 major divisions. Sewage and utilities got hit with the US housing market. Also have lots of water power in New England. Good solid utility. Thinks they are for sale. Assets are worth more than what the stock is trading at. 5% yield.
DON'T BUY
Power company. Sporadic and not a favourite of his.
BUY
7% debenture due 2017. This would be a very solid way to go as an investment. While the name has had some problems in the past, it has recently been upgraded by a number of brokerage houses.
TOP PICK
They had a problem with conversion from income trust. They cut their distributions by 50%. They had non-performing assets. Now he can see some utility rate increases coming. Yield 6.8%. He likes the renewables space and they are a proxy on renewables.
HOLD
Any company involved in the power space long-term is well positioned. Currently in potential talks to do a deal so there could be some upside from M&A activity. 6.9% distribution is probably safe.
SELL
(Market Call Minute.) Thinks the management team is weak and he doesn't like the collection of assets.
BUY
Green energy, both hydro and wind power. Green companies are going to get hit heard during the recession with oil prices down. If you can find a company that is going to survive this cycle and you can Buy them cheap, it will fit you up well for later on. Distribution was cut dramatically and now yields 9.4%, which is far more sustainable.
COMMENT
(Market Call Minute.) Good distribution. He himself wouldn't own it, but his partner does and would probably call it a Buy.
COMMENT
Debentures dropped when distributions where halved so the debentures should be a good Buy now. Would wait to see how their new strategy works out before buying any of the trust units but continue to Hold.
SELL
(Market Call Minute.) $50 million in free cash flow and there is some question if this will be enough to cover their debt covenants.
COMMENT
Cut the distribution and is not sure why it was cut so much. Still yields 9%. Some of the parts of their power assets are definitely higher than the current stock price. There are other power trusts that he would rather buy. (See Top Picks.)
COMMENT
Power generation trust. His least favourite sector as there is very limited pricing power. This one has a water processing business in the southwest US that is quite fascinating. Hopes they are able to surface the value in this business. A business that recycles and reprocesses a scarce commodity like water is one that you can grow a net value with. At an interesting price.
SELL
Has always over distributed. Debt levels are a little high. Would avoid this one.
DON'T BUY
She doesn't like the power space in general because of the limited growth and limited upside. This is not one of the top-quality names in that group. High payout ratio.
DON'T BUY
Acquiring Clean Power (CLE.UN-T), which should be accretive to the company. There are some synergies with this acquisition, but they're not the quality he likes to see.
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