ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-A - CA0213612090
25 CAD
+0.01 (+0.04%)
Taking everything into account, ALA-PR-A scores 5 out of 10 in our fundamental rating. ALA-PR-A was compared to 8 industry peers in the Gas Utilities industry. ALA-PR-A scores excellent on profitability, but there are concerns on its financial health. ALA-PR-A has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ALA-PR-A had positive earnings in the past year.
ALA-PR-A had a positive operating cash flow in the past year.
ALA-PR-A had positive earnings in each of the past 5 years.
In the past 5 years ALA-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, ALA-PR-A belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-A's Return On Equity of 9.04% is amongst the best of the industry. ALA-PR-A outperforms 87.50% 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 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-A 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
With an excellent Profit Margin value of 6.07%, ALA-PR-A belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-A's Profit Margin has declined in the last couple of years.
ALA-PR-A's Operating Margin of 9.88% is fine compared to the rest of the industry. ALA-PR-A outperforms 75.00% of its industry peers.
ALA-PR-A's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 27.70%, ALA-PR-A is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-A's Gross Margin has declined in the last couple of years.
| 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
The number of shares outstanding for ALA-PR-A has been increased compared to 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.
With a decent Altman-Z score value of 0.93, ALA-PR-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ALA-PR-A is 1624.33, which is on the high side as it means it would take ALA-PR-A, 1624.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALA-PR-A (1624.33) is comparable to the rest of the industry.
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 75.00% 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.
Looking at the Current ratio, with a value of 0.96, ALA-PR-A belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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.
ALA-PR-A's Quick ratio of 0.74 is fine compared to the rest of the industry. ALA-PR-A outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% over the past year.
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.
Looking at the last year, ALA-PR-A shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
Measured over the past years, ALA-PR-A shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
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 -0.15% 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 5Y-0.15%
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
ALA-PR-A is valuated reasonably with a Price/Earnings ratio of 10.82.
Based on the Price/Earnings ratio, ALA-PR-A is valued a bit cheaper than 75.00% of the companies in the same industry.
ALA-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
The Price/Forward Earnings ratio is 10.27, which indicates a very decent valuation of ALA-PR-A.
ALA-PR-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-A is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, 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 in line with the industry average.
| 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 ALA-PR-A does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALA-PR-A 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 2.93%, ALA-PR-A has a reasonable but not impressive dividend return.
ALA-PR-A's Dividend Yield is a higher than the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.41, ALA-PR-A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA-PR-A (9/29/2025, 7:00:00 PM)
25
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.36%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap7.49B
Analysts74.67
Price Target26.92 (7.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)1.05%
PT rev (3m)7.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.58 | ||
| P/FCF | 1247.79 | ||
| P/OCF | 4.92 | ||
| P/B | 0.87 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)2.31
EY9.24%
EPS(NY)2.44
Fwd EY9.74%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.32%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.43
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
WACC5.47%
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 Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y-0.15%
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 Year42.66%
EBIT Next 3Y16.67%
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%