New Value Analysis of Algonquin Power & Utilities Corp (AQN:NYSE) 2021

Published by Jonathan Taylor at 30th June 2021

Algonquin Power & Utilities Corp Value Analysis 2021 (NYSE:AQN)

Algonquin Power & Utilities Corp is a renewable energy and utility company mainly focussed in North America and more recently internationally, through investment in a Spanish company, listed on the New York and Toronto Stock Exchanges. Algonquin started with hydroelectric projects in Ontario Canada and has expanded to include wind and solar assets in Canada and USA and has also expanded into regulated utilities in USA and Canada. Algonquin recently added international exposure through an investment with Abengoa, a Spanish infrastructure and energy company.

Algonquin has expanded through acquisition in the last 4 years, which has been done using some debt. Debt has risen from $3 billion in 2016 to $4.4 billion at the end of 2020. Debt levels are a concern for owners of the common stock, but debt looks affordable based on the increased earnings. A full analysis of the debt levels and earnings is included in the analysis report linked in this post.

The price of the common stock of AQN has pulled back since February 2021 and is now potentially offering an attractive price for defensive value investors. You can see the recent price action in the chart below.

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The question now for value investors is whether the current price represents good price to start a position in AQN for new investors or to add to an existing position. The full answer can be found in the new analysis of Algonquin Power & Utilities Corpc common stock, which you can find here.

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