TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

7.88
+0.03 (0.38%)
as of Sep 1, 2026, 8:00:00 pm Market Open.
1395 watching
0
Investor Insights
star iconSep 1, 2026, 12:00 am

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

Algonquin Power & Utilities Corp (AQN) is currently undergoing a multi-year turnaround focused on becoming a more pure-play regulated utility after divesting its renewable energy assets. The company is predominantly operating in the US, which has prompted plans for redomiciling to attract more US investors and investors appear cautiously optimistic about its restructuring efforts. However, many experts express concerns about the high levels of debt and the modest earnings growth. While there are positive signs of management's improved execution and focus, there is still a prevailing sentiment of skepticism until the company can demonstrate consistent profitability. The stock is perceived as a potential turnaround candidate, but its history of dividend cuts and operational challenges keep some investors at bay.

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Consensus
Cautious
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Valuation
Undervalued
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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.
HOLD
One of the names that he is a little nervous about in the power/income trust space. They wear over distributing and then came out with a convertible bond issue. Actually have some pretty good assets, but had a high payout ratio. Might sell into strength.
BUY ON WEAKNESS
There might be a new issue lurking in the background. Under $10, it's not a bad buy.
DON'T BUY
Have not been able to pay their distributions due to water problems. These utilities similar to bonds and when interest rates go up, it suffers.
DON'T BUY
In the near term, believes there is significant positive catalysts in terms of where electricity prices are. Over the longer term, this is a bit of a messy story in terms of assets. A fairly complex portfolio with a lot of complex contracts which are not clear to investors.
DON'T BUY
Has consistantly disappointed in terms of what it's been able to do operationally. Payout ratio has been substantially above 100% for a long time. Not a stable or secure trust.
BUY
Likes.
HOLD
Recently acquired by StarPoint Energy (SPN.UN-T). APF had too high a payout ratio which was unsustainable. The acquisition allows APF to be managed more efficiently.
BUY
Distributions are fine. A utility and a high yield. Doesn't see any growth, so own it for the yield.
DON'T BUY
Did a new issue at $11.30. A more aggressive oil/gas situation.
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