| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 13 | 137.2x | 17.3x | Bottom tier | |
Growth | 55 | 7.2% | 7.1% | Around median | |
Quality | 33 | 3.9% | 4.5% | Bottom tier | |
Safety | 33 | 7.0x | 2.6x | Bottom tier | |
Capital Return | 80 | 1.07% | 0.06% | Top tier | |
Momentum | 62 | 1.5% | -1.6% | Around median | |
Sentiment | — | — | 3 | N/A |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Algonquin Power & Utilities Corp. operates in regulated utilities, generating revenue from electricity, gas, and water services under tariffs approved by regulators. Its business grows by recovering service costs and earning returns on investments through rate decisions, making approval timing and service quality direct factors in profitability. On the 2026-08-07 call, management explained that more than 80% of operations are in the United States, compared with less than 5% in Canada, and that it aims to establish a focused regulated utility model.
According to EL7 data, revenue in quarter 2 of fiscal year 2026, ended 2026-06-30, was approximately $543.9 million, net income was $3.6 million, and diluted earnings per share were $0.0064. The operating margin calculated by EL7 for the same period was 15.4%, and operating cash flow according to EL7 data was approximately $279.2 million. These are results for a single quarter; a reliable year-over-year revenue growth comparison is unavailable because the line item is defined differently in the data for the two periods.
Revenue for the last 12 months through 2026-06-30 was approximately $2.5 billion, net income was $149.7 million, and operating cash flow according to EL7 data was approximately $596.5 million. However, free cash flow calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-06-30 was -$58.9 million, showing that strong operating cash generation did not translate into a surplus after capital expenditures. The company's investment case centers on the ability of rate increases and project cost recovery to support earnings and funding while the debt burden persists.
Q2 FY2026
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-06-30
When: Second half of 2026
Tax ruling on the domicile transfer and elimination of the 5% tax on dividend funding transfers
When: Fiscal year 2027
Testing the expectation of no new equity issuance through the end of fiscal year 2027 against a zero threshold
Algonquin relies on regulated electricity, gas, and water utility services, where approved tariffs affect cost recovery and returns on investments. The Missouri decision issued on 2026-07-15 authorized implementation of a $97 million annualized revenue increase at Empire Electric Missouri starting on 2026-08-03. Implementation followed compliance with customer service and billing metrics, illustrating the link between revenue and operating performance before the regulator.
Operating cash flow according to EL7 data for the last 12 months through 2026-06-30 was approximately $596.5 million, compared with net income of $149.7 million for the same period. This represents earnings-to-cash conversion of 398%. However, free cash flow calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-06-30 was -$58.9 million, so the period did not produce a cash surplus after capital expenditures.
Management explained on 2026-08-07 that more than 80% of operations are in the United States, compared with less than 5% in Canada, and therefore sees the transfer as aligned with the location of assets and targeted growth. The transaction could eliminate a 5% tax on funds transferred to finance dividends and BEAT of approximately 10% on transfers to service holding company debt. The company aims to seek shareholder approval in the first half of 2027, subject to regulatory approvals and satisfaction of other conditions. The net benefit also remains linked to one-time tax and transaction costs whose range management did not specify on that call.
On the 2026-08-07 call, management did not announce a specific data center customer or a contracted large-load volume in Missouri. It explained that the large-load tariff is an enabling step for discussions, and that determining generation and transmission capacity requires aligning the resource plan with expected demand. The specific project approved on 2026-06-17 is 250 megawatts of gas-fired generation to meet customer demand and Southwest Power Pool requirements. The existence of this project is insufficient to establish a data center contract.
According to EL7 data, debt at the end of quarter 2 of fiscal year 2026, ended 2026-06-30, was approximately $6.6 billion, compared with cash and short-term investments of $55.0 million. This comparison excludes long-term marketable securities and therefore does not measure total liquidity. On the 2026-08-07 call, management reaffirmed its expectation of no equity issuance through the end of fiscal year 2027. This makes growth in cash generated from tariffs and control of financing costs important, particularly with free cash flow calculated by EL7 of -$58.9 million for the last 12 months through 2026-06-30.