ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
TSX:ALA-PR-A - CA0213612090
25.14 CAD
0 (0%)
Taking everything into account, ALA-PR-A scores 6 out of 10 in our fundamental rating. ALA-PR-A was compared to 8 industry peers in the Gas Utilities industry. While ALA-PR-A has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALA-PR-A.
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.
In the past 5 years ALA-PR-A has always been profitable.
ALA-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALA-PR-A (3.08%) is better than 100.00% of its industry peers.
ALA-PR-A's Return On Equity of 9.04% is amongst the best of the industry. ALA-PR-A outperforms 100.00% of its industry peers.
ALA-PR-A's Return On Invested Capital of 4.39% is fine compared to the rest of the industry. ALA-PR-A outperforms 75.00% of its industry peers.
ALA-PR-A had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 4.90%.
The last Return On Invested Capital (4.39%) for ALA-PR-A is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 6.07%, ALA-PR-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-A's Profit Margin has declined in the last couple of years.
The Operating Margin of ALA-PR-A (9.88%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of ALA-PR-A has grown nicely.
Looking at the Gross Margin, with a value of 27.70%, ALA-PR-A is in the better half of the industry, outperforming 75.00% of the companies in the same 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.
ALA-PR-A has more shares outstanding than it did 1 year ago.
ALA-PR-A has more shares outstanding than it did 5 years ago.
ALA-PR-A has a better debt/assets ratio than last year.
2.2 Solvency
ALA-PR-A has an Altman-Z score of 0.93. This is a bad value and indicates that ALA-PR-A is not financially healthy and even has some risk of bankruptcy.
ALA-PR-A has a Altman-Z score of 0.93. This is in the better half of the industry: ALA-PR-A outperforms 62.50% of its industry peers.
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 62.50% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-A has dependencies on debt financing.
ALA-PR-A has a better Debt to Equity ratio (1.08) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.5%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALA-PR-A may have some problems paying its short term obligations.
ALA-PR-A has a better Current ratio (0.96) than 100.00% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA-PR-A may have some problems paying its short term obligations.
ALA-PR-A has a better Quick ratio (0.74) than 75.00% of its industry peers.
| 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%.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
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 decrease by -0.07% on average over the next years.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
EPS Next 5Y-0.07%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ALA-PR-A is valuated reasonably with a Price/Earnings ratio of 10.88.
Compared to the rest of the industry, the Price/Earnings ratio of ALA-PR-A indicates a rather cheap valuation: ALA-PR-A is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. ALA-PR-A is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.32, the valuation of ALA-PR-A can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALA-PR-A is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.69. ALA-PR-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than ALA-PR-A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALA-PR-A is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1253.61 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ALA-PR-A may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)0.82
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
ALA-PR-A has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
ALA-PR-A's Dividend Yield is comparable with the industry average which is at 3.21.
ALA-PR-A's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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.
DP49.55%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
TSX:ALA-PR-A (9/5/2025, 7:00:00 PM)
25.14
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.37%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap7.52B
Analysts74.67
Price Target26.64 (5.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.14%
Min EPS beat(2)-0.52%
Max EPS beat(2)14.8%
EPS beat(4)3
Avg EPS beat(4)18.74%
Min EPS beat(4)-0.52%
Max EPS beat(4)54.51%
EPS beat(8)6
Avg EPS beat(8)17.55%
EPS beat(12)8
Avg EPS beat(12)8.71%
EPS beat(16)10
Avg EPS beat(16)13.56%
Revenue beat(2)1
Avg Revenue beat(2)2.02%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)8.03%
Revenue beat(4)1
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.03%
Revenue beat(8)2
Avg Revenue beat(8)-5.46%
Revenue beat(12)4
Avg Revenue beat(12)11.75%
Revenue beat(16)8
Avg Revenue beat(16)38.43%
PT rev (1m)5.34%
PT rev (3m)19.6%
EPS NQ rev (1m)14.73%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.59 | ||
| P/FCF | 1253.61 | ||
| P/OCF | 4.95 | ||
| P/B | 0.87 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)2.31
EY9.19%
EPS(NY)2.44
Fwd EY9.69%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.22%
SpS42.89
BVpS28.8
TBVpS10.33
PEG (NY)2.42
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.04% | ||
| ROCE | 5.59% | ||
| ROIC | 4.39% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 5.91% | ||
| OM | 9.88% | ||
| PM (TTM) | 6.07% | ||
| GM | 27.7% | ||
| FCFM | 0.05% |
ROA(3y)2.2%
ROA(5y)1.99%
ROE(3y)6.76%
ROE(5y)6.1%
ROIC(3y)3.44%
ROIC(5y)3.31%
ROICexc(3y)3.46%
ROICexc(5y)3.32%
ROICexgc(3y)4.67%
ROICexgc(5y)4.54%
ROCE(3y)4.43%
ROCE(5y)4.26%
ROICexcg growth 3Y-2.78%
ROICexcg growth 5Y46.91%
ROICexc growth 3Y-1.67%
ROICexc growth 5Y47.33%
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%
F-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Debt/EBITDA | 5.26 | ||
| Cap/Depr | 305.44% | ||
| Cap/Sales | 11.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.22% | ||
| Profit Quality | 0.77% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.93 |
F-Score6
WACC5.5%
ROIC/WACC0.8
Cap/Depr(3y)241.49%
Cap/Depr(5y)224.2%
Cap/Sales(3y)8.4%
Cap/Sales(5y)9.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.45%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%92.86%
EPS Next Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
EPS Next 5Y-0.07%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%2.49%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
EBIT growth 1Y42.15%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.74%
EBIT Next 3Y16.7%
EBIT Next 5Y10.8%
FCF growth 1Y100.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y420.89%
OCF growth 3Y27.73%
OCF growth 5Y19.91%