Algonquin Power & UtilitiesAQN +1.01%69 ROA % is 2.45% as of Mar. 2026, which is 31% above its 10-year median of 1.87. GuruFocus rates AQN with a GF Score™ of 69/100 and a GF Value™ of $5.67 (Fairly Valued). The stock has 7 warning signs investors should review. Among 511 Utilities - Regulated companies, Algonquin Power & Utilities ranks worse than 75.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Algonquin Power & Utilities's annualizedNet Income for the quarter that ended in Mar. 2026 was $345 Mil.
Algonquin Power & Utilities's average Total Assets over the quarter that ended in Mar. 2026 was $14,093 Mil. Therefore, Algonquin Power & Utilities's annualized ROA % for the quarter that ended in Mar. 2026 was 2.45%.
The historical rank and industry rank for Algonquin Power & Utilities's ROA % or its related term are showing as below:
AQN'
s ROA % Range Over the Past 10 Years
Min: -8.06 Med: 1.87 Max: 6.4
Current: 1.22
During the past 13 years, Algonquin Power & Utilities's highest ROA % was 6.40%. The lowest was -8.06%. And the median was 1.87%.
AQN's ROA % is ranked worse than 75.54% of 511
companies
in the Utilities - Regulated industry
Industry Median: 3.02
vs AQN: 1.22
Algonquin Power & Utilities (NYSE:AQN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Diversified subindustry, Algonquin Power & Utilities's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Algonquin Power & Utilities ROA % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Algonquin Power & Utilities's ROA % distribution charts can be found below:
* The bar in red indicates where Algonquin Power & Utilities's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Algonquin Power & Utilities (AQN) has a ROA % of 2.45% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Algonquin Power & Utilities and its competitors. This is 31% above median its historical median of 1.87. According to the industry distribution chart, Algonquin Power & Utilities ranks #386 out of 511 companies in the Utilities - Regulated industry, placing it in the top 75.5%.
Is Algonquin Power & Utilities' ROA % too high?
Algonquin Power & Utilities' current ROA % of 2.45% is 31% above median its 10-year median of 1.87. The Utilities - Regulated industry median ROA % is 3.02. Algonquin Power & Utilities' value of 2.45% is 18.9% below this industry median. Based on the distribution chart, Algonquin Power & Utilities ranks #386 out of 511 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Algonquin Power & Utilities has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Algonquin Power & Utilities' ROA % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Algonquin Power & Utilities ranks #386 out of 511 companies for ROA %. This places Algonquin Power & Utilities in the lower half of its industry. The industry median ROA % is 3.02. Algonquin Power & Utilities' value of 2.45% is 18.9% below this benchmark. While the company's 10-year median is 1.87 vs. the industry median of 3.02, Algonquin Power & Utilities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.02, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Algonquin Power & Utilities's current ROA % of 2.45% is 18.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Algonquin Power & Utilities and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Algonquin Power & Utilities's current ROA % is 2.45%, which is 31% above median its own 10-year median of 1.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Algonquin Power & Utilities stock overvalued right now?
Based on GuruFocus' analysis, Algonquin Power & Utilities (AQN) is currently considered Fairly Valued. The stock's GF Value™ is $5.67, compared to a current price of $6.02 — trading 6.2% above its estimated fair value. The current ROA % is 2.45%, which is 31% above median its 10-year median of 1.87 and 18.9% below the Utilities - Regulated industry median of 3.02. Algonquin Power & Utilities' overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Algonquin Power & Utilities (AQN), the current ROA % is 2.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Algonquin Power & Utilities (AQN) Overvalued in 2026?
Based on GuruFocus' analysis, Algonquin Power & Utilities stock appears to be overvalued.
The current stock price of $6.02 is trading 6.2% above its estimated GF Value™ of $5.67.
GuruFocus considers Algonquin Power & Utilities to be Fairly Valued.
Key valuation signals for AQN:
ROA %: 2.45% (31% above median its 10-year median of 1.87)
GF Value™: $5.67 vs. price of $6.02 (6.2% above fair value)
Industry Position: 18.9% below the Utilities - Regulated median (#386 of 511)
No single metric tells the full story. See the AQN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algonquin Power & Utilities Corp is a Canada-based diversified international generation, transmission, and distribution company. The company's operations are organized across two business units: the Regulated Services Group, which owns and operates a portfolio of regulated electric, water distribution, and wastewater collection, and natural gas utility systems and transmission operations in the United States, Canada, Bermuda, and Chile; and the Hydro Group, which consists of hydroelectric-generating facilities located in Canada. It generates the majority of its revenue from the Regulated Services Group segment.
69GF Score
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