ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:ALA-PR-A • CA0213612090
25 CAD
+0.01 (+0.04%)
Last: Sep 29, 2025, 07:00 PM
Taking everything into account, ALA-PR-A scores 5 out of 10 in our fundamental rating. ALA-PR-A was compared to 6 industry peers in the Gas Utilities industry. While ALA-PR-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALA-PR-A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ALA-PR-A was profitable.
- ALA-PR-A had a positive operating cash flow in the past year.
- Each year in the past 5 years ALA-PR-A has been profitable.
- Each year in the past 5 years ALA-PR-A had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 3.08%, ALA-PR-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- ALA-PR-A has a Return On Equity of 9.04%. This is amongst the best in the industry. ALA-PR-A outperforms 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.39%, ALA-PR-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ALA-PR-A is in line with the industry average of 5.31%.
- The 3 year average ROIC (3.44%) for ALA-PR-A is below the current ROIC(4.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.04% | ||
| ROIC | 4.39% |
ROA(3y)2.2%
ROA(5y)1.99%
ROE(3y)6.76%
ROE(5y)6.1%
ROIC(3y)3.44%
ROIC(5y)3.31%
1.3 Margins
- The Profit Margin of ALA-PR-A (6.07%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of ALA-PR-A has declined.
- Looking at the Operating Margin, with a value of 9.88%, ALA-PR-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- ALA-PR-A's Operating Margin has improved in the last couple of years.
- ALA-PR-A has a Gross Margin (27.70%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ALA-PR-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | 6.07% | ||
| GM | 27.7% |
OM growth 3Y-1.16%
OM growth 5Y32.51%
PM growth 3Y28.76%
PM growth 5Y-19.79%
GM growth 3Y-1.26%
GM growth 5Y-8.77%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA-PR-A is destroying value.
- Compared to 1 year ago, ALA-PR-A has more shares outstanding
- ALA-PR-A has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ALA-PR-A has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.93, we must say that ALA-PR-A is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 0.93, ALA-PR-A is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- ALA-PR-A has a debt to FCF ratio of 1624.33. This is a negative value and a sign of low solvency as ALA-PR-A would need 1624.33 years to pay back of all of its debts.
- The Debt to FCF ratio of ALA-PR-A (1624.33) is better than 71.43% of its industry peers.
- ALA-PR-A has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
- ALA-PR-A has a better Debt to Equity ratio (1.08) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.47%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that ALA-PR-A may have some problems paying its short term obligations.
- The Current ratio of ALA-PR-A (0.96) is better than 85.71% of its industry peers.
- ALA-PR-A has a Quick Ratio of 0.96. This is a bad value and indicates that ALA-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.74, ALA-PR-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- ALA-PR-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
- ALA-PR-A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
- ALA-PR-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
- ALA-PR-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.77% yearly.
EPS 1Y (TTM)8.45%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%92.86%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%2.49%
3.2 Future
- The Earnings Per Share is expected to grow by 0.17% on average over the next years.
- The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y0.17%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.82, which indicates a very decent valuation of ALA-PR-A.
- 85.71% of the companies in the same industry are more expensive than ALA-PR-A, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. ALA-PR-A is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.27, the valuation of ALA-PR-A can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ALA-PR-A is valued a bit cheaper than 71.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ALA-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA-PR-A is on the same level as its industry peers.
- ALA-PR-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALA-PR-A is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1247.79 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ALA-PR-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)0.82
EPS Next 2Y5.69%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.98%, ALA-PR-A has a reasonable but not impressive dividend return.
- ALA-PR-A's Dividend Yield is comparable with the industry average which is at 2.11.
- ALA-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
- The dividend of ALA-PR-A has a limited annual growth rate of 0.74%.
- ALA-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- ALA-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 49.55% of the earnings are spent on dividend by ALA-PR-A. This is a bit on the high side, but may be sustainable.
- The dividend of ALA-PR-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
ALTAGAS LTD - ALACN 3.06 PERP / ALA-PR-A.CA FAQ
What is the ChartMill fundamental rating of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALA-PR-A.CA.
What is the valuation status for ALA-PR-A stock?
ChartMill assigns a valuation rating of 6 / 10 to ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA). This can be considered as Fairly Valued.
What is the profitability of ALA-PR-A stock?
ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) stock?
The Price/Earnings (PE) ratio for ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) is 10.82 and the Price/Book (PB) ratio is 0.87.
Can you provide the dividend sustainability for ALA-PR-A stock?
The dividend rating of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) is 4 / 10 and the dividend payout ratio is 49.55%.