TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.49
-0.01 (0.12%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
1396 watching
0
Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 27 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) has undergone significant transformation recently, focusing more on regulated utility operations while divesting its renewables segment. Despite a challenging past characterized by management changes, poor performance in renewables, and high leverage, many experts see potential for recovery and growth. Analysts highlight a more stable business model moving forward and express optimism about upcoming profitability improvements under new management. Although some experts remain cautious due to lingering high debt levels and prior dividend cuts, several analysts note AQN's share price potential, especially if it can consistently breach the resistance around $9. With a yield of approximately 4-5%, investors may find an agreeable income through dividends while awaiting further stock price recovery.

consensus icon
Consensus
Cautious
valuation icon
Valuation
Undervalued
review icon
Similar
CPX
DON'T BUY

He sold it in November 2021 when they bought a Kentucky company; didn't like that ROI and many institutional investors still don't like that deal for its huge capital cost, but limited return. They recently announced a 40% dividend cut, and they must sell some assets (but AQN hasn't said what). This is dead money until management regains credibility.

DON'T BUY
Growth in the power business is slower so avoid the sector. It cut the dividend which is a warning sign.
WAIT
Market's concerned about debt. Asset sales have popped the share price off the bottom. Not his style to try to pick the absolute bottom, likes to see it to come up a bit on improving news. Don't step in just yet. Looks attractive. Looking for more stability in its business and debt.
HOLD
Huge hit last quarter. Cut dividend, so payout ratio 75% of 2023 earnings (good that asset base excludes assets being sold). Stopped DRIP, not issuing equity for 2 years, asset sales. Yield still around 6%. Trading at 12x, very cheap. 70% of operations are regulated, steady income. Sticking with it for now. Now it's all about execution. If Kentucky acquisition fails, could be positive for the stock.
DON'T BUY
Recently lifted short on the position, but does not believe in the prospects of company. Recent dividend cut not enough. Lots of debt on balance sheet makes financing very hard (rising interest rates). Waiting for stock price to fall before investing.
DON'T BUY
Has a lot of baggage. His time horizons are a lot longer. You could buy it on positive news, like a purchase in Kentucky was rebuffed, given AQn's debt levels. [Will have an investor update call on Thursday, likely cutting the dividend.] Wait and see on that call before deciding. Look at other names.
RISKY
After a big run, sideways through 2020-22, big correction. Trying to stabilize around $9. Major support level is around $9.13. Wait to see if a new uptrend takes hold. If you have really high conviction, you can add a small position. If it heads lower take it off, and if it goes higher add more.
DON'T BUY
Dividend safe? Difficult numbers, problems with some assets. Technically, dividend is safe from a cashflow perspective. It would make sense to cut the dividend now, since the stock is down so much, because the stock won't fall much more even if they cut it. Big issue is whether debt will be downgraded, as it makes interest payments much higher and they may not be able to buy assets. Yield is 11%.
WEAK BUY
1-3 year outlook He too was surprised with their earnings call. Restoring confidence will take time. They must restore debt levels, but the jump in interest rates surprised all in the market. Maybe AQN needs to sell some projects. Expect no growth for 2 years. Maybe they should stop issuing shares and they might stop their DRIP. He doesn't think they will cut their dividend. Probably AQN is pounded further by tax-loss selling. Suggests you sell puts at a lower strike in a taxable account.
DON'T BUY
There is a possibility it could be taken out. He has sold and would not buy it back now.
HOLD
Disappointed shareholder, but still keeping shares. Poor 3rd quarter and has recently decreased guidance. Kentucky Power merger will not go through (not a good sign). Hoping that balance sheet remains at investment grade.
HOLD
Under acute pressure, especially since Q3 reporting. Strain from inflationary cost pressures, delays in reaping tax credits. Long established history in the renewable space, which will be secularly advantaged. Below book value at 0.9x. Market skeptical of the 10.3% dividend, risk of a cut is on the table but not on the knife's edge. Might already be priced in. Insider buying. Still BBB credit. Don't step in aggressively now amid tax-loss selling. Longer term, can own comfortably.
PAST TOP PICK
(A Top Pick Dec 17/21, Down 42%) Tough. He actually bought more. Short-term problems of missing on Q3 and pulling guidance for next year. Bigger overhang is the acquisition closing next year, funded by variable rate debt. They do have options. Better management communication could have helped. Dividend cut is about 50/50, but probably not eliminated. Astounding valuation at 10x earnings, 6x cashflow. Watch next 3-18 months to see how issues are addressed.
COMMENT
Recent headwinds include a high exposure to floating interest rates along with a lot of debt coming due this year and in 2023. The acquisition of Kentucky power will add more debt. The dividend is 10% but there is risk that they can't sustain it.
DON'T BUY
Has sold shares in the company. Does not believe in prospects for company. Unsure whether dividend is sustainable. Better options available for investors.
Showing 121 to 135 of 580 entries