TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.06
-0.03 (0.37%)
as of Aug 6, 2026, 8:00:01 pm Market Open.
1393 watching
0
Investor Insights
star iconAug 6, 2026, 12:00 am

This summary was created by AI, based on 28 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) has experienced significant challenges over the past few years, particularly stemming from high debt levels associated with its aggressive acquisitions in the renewable sector, which led to a dividend cut and a loss of investor confidence. Despite these struggles, recent reviews indicate that the company is undergoing a transformation, refocusing on its core regulated utility business after divesting most of its renewable assets. Analysts have observed signs of improvement, suggesting that AQN is gradually regaining footing under new management. However, the stock remains in the 'penalty box' and is viewed as a 'show-me' stock, awaiting proof of its capability to generate consistent profits again. While there is optimism about future earnings potential and attractive yields, many experts suggest a cautious approach due to the lingering restructuring phase.

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Consensus
Cautious
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Valuation
Undervalued
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COMMENT
Used to own but didn't like some of the management contracts but it has since changed. Doesn't get a good feel for it.
TOP PICK
Relatively small cap name. This is a good time to be thinking defence. Decent organic growth but has been very effective at small tuck-in acquisitions of regulated utilities throughout the US. Partnership with Emerus (?) which is positive. Free cash flow yield. Dividend yield of over 5%.
BUY
Has done well. Just reported good numbers. Optimistic about them. Yield of almost 5%.
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.
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