Algonquin Power Profitability Analysis
| AQNB Stock | USD 25.70 0.07 0.27% |
Net Income | First Reported 2010-12-31 | Previous Quarter 20.3 M | Current Value 19.3 M | Quarterly Volatility 240.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.47 | 0.3911 |
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For Algonquin Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Algonquin Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Algonquin Power Utilities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Algonquin Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Algonquin Power Utilities over time as well as its relative position and ranking within its peers.
Algonquin |
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Algonquin Power. If investors know Algonquin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Algonquin Power listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Algonquin Power Utilities is measured differently than its book value, which is the value of Algonquin that is recorded on the company's balance sheet. Investors also form their own opinion of Algonquin Power's value that differs from its market value or its book value, called intrinsic value, which is Algonquin Power's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Algonquin Power's market value can be influenced by many factors that don't directly affect Algonquin Power's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Algonquin Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Algonquin Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Algonquin Power's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Algonquin Power Utilities EBITDA vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Algonquin Power's current stock value. Our valuation model uses many indicators to compare Algonquin Power value to that of its competitors to determine the firm's financial worth. Algonquin Power Utilities is the top company in revenue category among its peers. It also is number one stock in ebitda category among its peers totaling about 0.36 of EBITDA per Revenue. The ratio of Revenue to EBITDA for Algonquin Power Utilities is roughly 2.76 . At present, Algonquin Power's Total Revenue is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Algonquin Power's earnings, one of the primary drivers of an investment's value.Algonquin Revenue vs. Competition
Algonquin Power Utilities is the top company in revenue category among its peers. Market size based on revenue of Utilities industry is presently estimated at about 13.52 Billion. Algonquin Power retains roughly 2.7 Billion in revenue claiming about 20% of Utilities industry.
Algonquin EBITDA vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Algonquin Power |
| = | 2.7 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Algonquin Power |
| = | 976.62 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Algonquin EBITDA Comparison
Algonquin Power is currently under evaluation in ebitda category among its peers.
Algonquin Power Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Algonquin Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Algonquin Power will eventually generate negative long term returns. The profitability progress is the general direction of Algonquin Power's change in net profit over the period of time. It can combine multiple indicators of Algonquin Power, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -102.3 M | -97.2 M | |
| Interest Income | 268.8 M | 161.7 M | |
| Operating Income | 477.8 M | 368 M | |
| Income Before Tax | -119.6 M | -113.6 M | |
| Total Other Income Expense Net | -597.4 M | -567.5 M | |
| Net Income Applicable To Common Shares | 600.8 M | 630.8 M | |
| Net Income | 28.7 M | 27.2 M | |
| Income Tax Expense | -87.9 M | -83.5 M | |
| Net Income Per Share | 0.03 | 0.03 | |
| Income Quality | (18.86) | (17.91) | |
| Net Loss | (0.24) | (0.25) |
Algonquin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Algonquin Power. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Algonquin Power position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Algonquin Power's important profitability drivers and their relationship over time.
Algonquin Power Profitability Trends
Algonquin Power profitability trend refers to the progression of profit or loss within a business. An upward trend means that Algonquin Power's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Algonquin Power's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Algonquin Power Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Algonquin Power different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Algonquin Power in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Algonquin Power's future profitability.
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Use Algonquin Power in pair-trading
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.Algonquin Power Pair Trading
Algonquin Power Utilities Pair Trading Analysis
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.Use Investing Themes to Complement your Algonquin Power position
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Check out Trending Equities. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Algonquin Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Algonquin Power Utilities at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Algonquin Power's income statement, its balance sheet, and the statement of cash flows.