07-25-2021, 12:57 AM
AQN.
By far the wildest utility I've seen. I'm exhausted just from reading through a couple of their reports, still trying to wrap my head around everything they actually own and how it all fits together. And this is a small ($10b) market cap utility, yet they have their fingers in everything and simply the amount of instruments they use to raise capital (ATM offering, direct share offerings, there are some preferred shares, now they are doing some weird baby bond coupled with an option(?) offerings) makes my brain hurt.
Majority of the revenue/earnings come from electricity and natural gas distribution though, so it shouldn't be TOO risky. And the large majority of the generating side is in renewables, they are aiming for 75% in a little over a year. (hydro, wind, solar, thermal) About everything else seems risky though, especially the cash flows that fluctuate way more than usual. Lots of share dilution and high debt levels resulting from purchasing a lot of assets. Overall the financials remind me more of a tech growth company rather than a utility.
The growth is there, both in terms of assets, EPS and dividend. Yielding over 4% now with a historical yearly growth rate of about 10%.
High risk, high reward. Might as well own a bit?
By far the wildest utility I've seen. I'm exhausted just from reading through a couple of their reports, still trying to wrap my head around everything they actually own and how it all fits together. And this is a small ($10b) market cap utility, yet they have their fingers in everything and simply the amount of instruments they use to raise capital (ATM offering, direct share offerings, there are some preferred shares, now they are doing some weird baby bond coupled with an option(?) offerings) makes my brain hurt.
Majority of the revenue/earnings come from electricity and natural gas distribution though, so it shouldn't be TOO risky. And the large majority of the generating side is in renewables, they are aiming for 75% in a little over a year. (hydro, wind, solar, thermal) About everything else seems risky though, especially the cash flows that fluctuate way more than usual. Lots of share dilution and high debt levels resulting from purchasing a lot of assets. Overall the financials remind me more of a tech growth company rather than a utility.
The growth is there, both in terms of assets, EPS and dividend. Yielding over 4% now with a historical yearly growth rate of about 10%.
High risk, high reward. Might as well own a bit?