Algonquin Power and Utilities is one of the leading power public companies in Canada. The company have been consistently striving towards profitable investments through exploiting clean energy resources.
The stock value is beleived to be undervalued, since the company's future plans by 2023 focuses on reducing carbon emissions and increasing number of customers by over 50 percent. reduction of carbon footprint is going to increase revenues generated from Solar & Wind Power facilities along with higher revenues due to PPA.
Algonquin is currently a reputable company that is actively seeking to accommodate the energy demand by using only clean energy resources, which is an attractive aspect for any investor, specially during the current energy trnaisition phase.
Carbon credits are expected to increase in value throughout the next 5 years, and hence profit margins are going to increase emminently.
Furthermore, the discount rate of equity is expected to be too high, which paritally explains why the stock price is relatively low. currently Algonquin is exploiting the potential of developing Natural Gas facilities for accommodating peak time demands in USA, which is going to be hugely supported by the US Governmnet through grants, high PPA values, which will increase the company's overall earning