Algonquin Power Utilities Stock Price To Earning
| AQN Stock | CAD 6.78 0.13 1.95% |
Algonquin Power Utilities fundamentals help investors to digest information that contributes to Algonquin Power's financial success or failures. It also enables traders to predict the movement of Algonquin Stock. The fundamental analysis module provides a way to measure Algonquin Power's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Algonquin Power stock.
Algonquin | Price To Earning |
Algonquin Power Utilities Company Price To Earning Analysis
Algonquin Power's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Current Algonquin Power Price To Earning | 6.08 X |
Most of Algonquin Power's fundamental indicators, such as Price To Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Algonquin Power Utilities is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Algonquin Price To Earning Driver Correlations
Understanding the fundamental principles of building solid financial models for Algonquin Power is extremely important. It helps to project a fair market value of Algonquin Stock properly, considering its historical fundamentals such as Price To Earning. Since Algonquin Power's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Algonquin Power's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Algonquin Power's interrelated accounts and indicators.
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Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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Algonquin Retained Earnings
Retained Earnings |
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Based on the latest financial disclosure, Algonquin Power Utilities has a Price To Earning of 6.08 times. This is 79.87% lower than that of the Independent Power and Renewable Electricity Producers sector and significantly higher than that of the Utilities industry. The price to earning for all Canada stocks is 78.83% higher than that of the company.
Algonquin Price To Earning Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Algonquin Power's direct or indirect competition against its Price To Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Algonquin Power could also be used in its relative valuation, which is a method of valuing Algonquin Power by comparing valuation metrics of similar companies.Algonquin Power is currently under evaluation in price to earning category among its peers.
Algonquin Power Current Valuation Drivers
We derive many important indicators used in calculating different scores of Algonquin Power from analyzing Algonquin Power's financial statements. These drivers represent accounts that assess Algonquin Power's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Algonquin Power's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 7.1B | 9.2B | 9.0B | 4.1B | 6.1B | 6.4B | |
| Enterprise Value | 10.9B | 13.6B | 15.1B | 11.5B | 14.6B | 15.3B |
Algonquin Fundamentals
| Return On Equity | 0.041 | ||||
| Return On Asset | 0.016 | ||||
| Profit Margin | (0.39) % | ||||
| Operating Margin | 0.20 % | ||||
| Current Valuation | 15.72 B | ||||
| Shares Outstanding | 767.23 M | ||||
| Shares Owned By Insiders | 0.06 % | ||||
| Shares Owned By Institutions | 62.61 % | ||||
| Number Of Shares Shorted | 21.77 M | ||||
| Price To Earning | 6.08 X | ||||
| Price To Book | 0.78 X | ||||
| Price To Sales | 1.95 X | ||||
| Revenue | 2.7 B | ||||
| Gross Profit | 1.05 B | ||||
| EBITDA | 1.1 B | ||||
| Net Income | (33.3 M) | ||||
| Cash And Equivalents | 57.62 M | ||||
| Cash Per Share | 0.12 X | ||||
| Total Debt | 8.52 B | ||||
| Debt To Equity | 1.03 % | ||||
| Current Ratio | 0.77 X | ||||
| Book Value Per Share | 6.07 X | ||||
| Cash Flow From Operations | 628.03 M | ||||
| Short Ratio | 8.74 X | ||||
| Earnings Per Share | 0.75 X | ||||
| Price To Earnings To Growth | 1.41 X | ||||
| Target Price | 5.74 | ||||
| Number Of Employees | 3.95 K | ||||
| Beta | 0.52 | ||||
| Market Capitalization | 5.1 B | ||||
| Total Asset | 18.37 B | ||||
| Retained Earnings | (1.28 B) | ||||
| Working Capital | (618.84 M) | ||||
| Current Asset | 423.73 M | ||||
| Current Liabilities | 391.88 M | ||||
| Annual Yield | 0.05 % | ||||
| Five Year Return | 4.35 % | ||||
| Net Asset | 18.37 B | ||||
| Last Dividend Paid | 0.39 |
About Algonquin Power Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Algonquin Power Utilities's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Algonquin Power using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Algonquin Power Utilities based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Algonquin Power
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Algonquin Power position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Algonquin Power will appreciate offsetting losses from the drop in the long position's value.Moving against Algonquin Stock
| 0.81 | RY-PM | Royal Bank | PairCorr |
| 0.81 | RY-PJ | Royal Bank | PairCorr |
| 0.8 | RY-PS | Royal Bank | PairCorr |
| 0.79 | JPM | JPMorgan Chase | PairCorr |
| 0.76 | BOFA | Bank of America | PairCorr |
The ability to find closely correlated positions to Algonquin Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Algonquin Power when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Algonquin Power - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Algonquin Power Utilities to buy it.
The correlation of Algonquin Power is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Algonquin Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Algonquin Power Utilities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Algonquin Power can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Algonquin Power Utilities. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.