ALGONQUIN POWER & UTILITIES CORP.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag AQN's debt & leverage

  LT Debt vs Net Current AssetsLT Debt $6.2B vs NCA $5.2M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.41, IC: 1.8x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.41

  ✗Lynch< 0.33

  Cash - Long-term Debt$-6.1B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change36.59% -> 43.64%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.00

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.41

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.41

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.8x, D/EBITDA=7.2x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.41

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.4076; #3539/4210 (top 84.1%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✓ 6✗ 22▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / Book Value per Share0.9x

  ✓Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.9x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 25.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=5.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS25.5x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)7.2x

  ✓Dreman< 8x

  Valuation ReasonablenessP/E=25.5x, OE Yield=-4.4%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=25.5x, FCF Yield=-4.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=25.5x, P/B=0.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low126% of trailing low ($4.44)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+4.19%; #1948/6340 (top 30.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+1.0764; #1353/6449 (top 21.0%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS25.5x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E-1.02

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.40x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-30.7%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.5644; #2464/5247 (top 47.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-4.14%; #2909/4519 (top 64.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-4.92%; #3126/6202 (top 50.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 5▾

  AQN overvalued: all 5 models price fair value below $5.60 (median $4.86)

  Graham fair value$5.47

  ✗Graham-2.4% margin vs $5.60

  Buffett fair value$2.78

  ✗Buffett-101.4% margin vs $5.60

  Greenblatt fair value$4.86

  ✗Greenblatt-15.2% margin vs $5.60

  Pabrai fair value$0.76

  ✗Pabrai-636.8% margin vs $5.60

  Akre fair value$5.56

  ✗Akre-0.7% margin vs $5.60
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag AQN's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.00

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)3.0%

  ✗Buffett> 10%

  ROIC - WACC-7.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)5.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.76 -> 1.00

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.14x -> 0.17x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.00

  ✗Dreman> 1.5

  Return on Invested Capital3.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=2.9%; FY2024: ROIC=3.1%; FY2025: ROIC=3.6%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC0.0% (RR=0% x ROIC=3.6%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 3.6%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts14% pass✓ 2✗ 12▾

  Split decision: 11 FAIL · 3 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (2/9)✗LynchFAIL (1/7)✗GreenblattRank #1553•PiotroskiNEUTRAL (F-Score 6)✓DremanPASS (5/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)•SleepNEUTRAL (4/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (2/7)✗OshaughnessyFAIL (Rank #532/963 (Top 55.2%))
• Profitability19% pass✓ 12✗ 23▾

  13 of 16 flag AQN's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)14/17 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)14/17 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-4.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)20.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$180.8M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 25.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-30.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE3.9%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=5.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.28%

  ✓PiotroskiROA > 0

  ROA Change YoY-8.14% -> 1.28% (delta: +9.42%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.20%, ROA=1.28%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue8.7%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity3.9%

  ✗Dreman> 12%

  Margin of SafetyP/E=25.5x, P/B=0.9x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-8.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency14/16 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue20.7%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity3.9%

  ✗Ackman>= 15%

  5-Year EPS CAGR-30.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend19.4% (2023) -> 20.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 19.4% -> 20.7%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+4.19%; #1948/6340 (top 30.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+3.90%; #2576/5226 (top 49.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0357; #2130/5884 (top 36.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-30.6% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years8/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth25% pass✓ 4✗ 9▾

  6 of 8 flag AQN's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 25.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-30.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency14/16 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-3.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-30.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 19.4% -> 20.7%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR7.7%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-30.6% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag AQN's cash flow — Lynch, Pabrai, Marks +3 more

  Free Cash Flow Proxy$180.8M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-178.3M

  ✗LynchPositive and growing

  Operating Cash Flow$593.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.20%, ROA=1.28%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)7.2x

  ✓Dreman< 8x

  P/E or FCF YieldP/E=25.5x, FCF Yield=-4.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive5/16 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-4.1%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency16/16 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-178.3M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-4.14%; #2909/4519 (top 64.4%)

  ✗OshaughnessyTop 10% of eligible cross-section