Stock fact sheet · data as of
Algonquin Power & Utilities Corp. (AQN): fair value, margin of safety and Wheel Score
Utilities · Diversified Utilities · Canada · High Yield Income
Is AQN undervalued?
At 5.20 (close of 16 Oct 2026), AQN trades 55% over the GLS average fair value of 3.35, with 1 of 7 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 7 models disagree widely: GLS Growth gives 0.7908 while 10 Cap gives 5.75. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files AQN under High Yield Income: a dividend yield above 4%.
Nine valuation models for AQN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 5.11 | -2% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 4.47 | -14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.47 | -72% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.7908 | -85% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 5.75 | +11% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 3.74 | -28% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.14 | -59% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.22 | -297% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.25 | +20% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - AQN passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 1.6%, ROE 3.9%, ROA 1.3% - with debt at 1.41 times equity and negative free cash flow.
The dividend yield is high at 4.88% (payout ratio 142%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Regulated Electricity 52%, Regulated Gas 17%, Regulated Water 15% (quarter Q2 FY2023).
Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 1.6% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 3.9% |
| Debt / equity | 1.41 | ROA | 1.3% |
| Free-cash-flow yield | -1.5% | Payout ratio | 142% |
| Institutions | 8 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 53: Fair
AQN scores 53 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 11/20, Moat 4/15, Premium 20/20, Stability 18/20. Value (0/25) is where the points are missing.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,035 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.2M shares a day on a market cap of $4.0B, with a beta of 0.89; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -55% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 20 / 20 | implied volatility 48% | |
| Stability | 18 / 20 | 4.2M shares/day, $4.0B cap, beta 0.89 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 6 Nov 2026 (before the open), 21 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Diversified Utilities
The 9 companies below are the closest to Algonquin Power & Utilities Corp. by market cap within the Diversified Utilities industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AVA Avista Corporation | 36.18 | 37.49 | +3% | 65Good | $3.0B |
| BIPH Brookfield Infrastructure Finance ULC 5 % Notes 2021-24.05.81 Global | 15.33 | 28.60 | +46% | 39No options | $5.6B |
| AES The AES Corporation | 14.97 | 45.69 | +67% | 76Good | $10.7B |
| SREA Sempra | 18.83 | 25.71 | +27% | 39No options | $12.3B |
| UTL Unitil Corporation | 53.20 | 34.16 | -56% | 48Weak | $970M |
| BIP Brookfield Infrastructure Partners L.P. | 37.27 | 26.64 | -40% | 48Weak | $17.2B |
| AQNB Algonquin Power & Utilities Corp. | 25.63 | 17.93 | -43% | 31No options | $18.8B |
| SRE Sempra | 81.99 | 54.49 | -50% | 52Fair | $53.6B |
| TVC Tennessee Valley Authority | 23.82 | 17,297.56 | +100% | 39No options | $13M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AQN
Is AQN undervalued right now?
No: at 5.20 the stock trades 55% above the GLS average fair value of 3.35 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of AQN and what does it mean?
AQN scores 53 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AQN?
3.35 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Algonquin Power & Utilities Corp. report earnings next?
The next earnings report is due on 6 Nov 2026 (before the open), 21 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AQN have listed options, and how liquid are they?
Yes. The nightly snapshot found 42 listed contracts with 2,035 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.