2020-Spring Dividend Achiever Canadian Companies

摘要

Business Summary: Water Utilities (MIC: 3.2.1 SIC: 1623 NAIC: 488390) Algonquin Power & Utilities is a generation, transmission and distribution utility company. Co.'s distribution business operates in the U.S. under the name of Liberty Utilities Co. and provides rate regulated water, electricity and natural gas utility services. Co.'s generation business operates under the name Algonquin Power Co. and owns or has interests in non-regulated North American based contracted wind, solar, hydroelectric and natural gas powered generating facilities. Co.'s transmission business operates under the name Liberty Utilities (Pipeline & Transmission) and invests in rate regulated electric transmission and natural gas pipeline systems in the U.S. and Canada. Recent Developments: For the year ended Dec 31 2019, net income increased 513.2% to US$485.0 million from US$79.1 million in the prior year. Revenues were US$1.62 billion, down 1.4% from US$1.65 billion the year before. Operating income was US$365.4 million versus US$378.4 million in the prior year, a decrease of 3.5%. Direct operating expenses declined 4.3% to US$915.3 million from US$956.6 million in the comparable period the year before. Indirect operating expenses increased 9.8% to US$344.3 million from US$313.4 million in the equivalent prior-year period. Prospects: Our evaluation of Algonquin Power & Utilities Corp. as of March 27th, 2020 is the result of our systematic analysis on three basic characteristics: earnings strength, relative valuation, and recent stock price movement. The company has produced a positive trend in earnings per share over the past 5 quarters. In addition, recent analyst estimates for the company have been raised, and C.AQN has posted results that exceeded analysts' expectations. Based on operating earnings yield, the company is fairly valued when compared to all of the companies we cover. Share price changes over the past year indicates that C.AQN will perform in line with the market over the near term.