ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
TSX:ALA-PR-A - Toronto Stock Exchange - CA0213612090 - Currency: CAD
Overall ALA-PR-A gets a fundamental rating of 5 out of 10. We evaluated ALA-PR-A against 8 industry peers in the Gas Utilities industry. ALA-PR-A has an excellent profitability rating, but there are some minor concerns on its financial health. ALA-PR-A has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-A was profitable.
In the past year ALA-PR-A had a positive cash flow from operations.
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
The Return On Assets of ALA-PR-A (2.15%) is better than 100.00% of its industry peers.
ALA-PR-A has a Return On Equity of 6.18%. 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 3.44%, ALA-PR-A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 4.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.18% | ||
| ROIC | 3.44% |
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 4.40%, ALA-PR-A belongs to the best 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.
ALA-PR-A has a better Operating Margin (7.97%) than 75.00% of its industry peers.
ALA-PR-A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.65%, ALA-PR-A is in the better half of the industry, outperforming 62.50% 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 | 7.97% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.65% |
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
ALA-PR-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ALA-PR-A has been increased compared to 1 year ago.
Compared to 5 years ago, ALA-PR-A has more shares outstanding
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 0.83, we must say that ALA-PR-A is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALA-PR-A (0.83) is better than 62.50% of its industry peers.
ALA-PR-A has a debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA-PR-A would need 68.55 years to pay back of all of its debts.
ALA-PR-A's Debt to FCF ratio of 68.55 is fine compared to the rest of the industry. ALA-PR-A outperforms 62.50% of its industry peers.
ALA-PR-A has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, ALA-PR-A belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.49
WACC7%
2.3 Liquidity
ALA-PR-A has a Current Ratio of 0.95. 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 Current ratio, with a value of 0.95, 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 0.95. 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.
With a decent Quick ratio value of 0.78, ALA-PR-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ALA-PR-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.34%.
Measured over the past years, ALA-PR-A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.25% on average per year.
Looking at the last year, ALA-PR-A shows a small growth in Revenue. The Revenue has grown by 1.25% in the last year.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
EPS 1Y (TTM)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
3.2 Future
Based on estimates for the next years, ALA-PR-A will show a decrease in Earnings Per Share. The EPS will decrease by -3.67% on average per year.
ALA-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.67%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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 10.39.
Based on the Price/Earnings ratio, ALA-PR-A is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALA-PR-A to the average of the S&P500 Index (26.35), we can say ALA-PR-A is valued rather cheaply.
A Price/Forward Earnings ratio of 9.30 indicates a reasonable valuation of ALA-PR-A.
ALA-PR-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALA-PR-A is cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALA-PR-A to the average of the S&P500 Index (22.19), we can say ALA-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
ALA-PR-A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALA-PR-A is cheaper than 62.50% of the companies in the same industry.
ALA-PR-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALA-PR-A is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.03 | ||
| EV/EBITDA | 10.94 |
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)2.85
PEG (5Y)0.78
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-A has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, ALA-PR-A has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ALA-PR-A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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
67.26% of the earnings are spent on dividend by ALA-PR-A. This is not a sustainable payout ratio.
The Dividend Rate of ALA-PR-A has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA-PR-A (6/20/2025, 7:00:00 PM)
22.66
-0.05 (-0.22%)
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 Cap6.77B
Analysts74.29
Price Target24.99 (10.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP67.26%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.83%
Min EPS beat(2)-0.52%
Max EPS beat(2)6.18%
EPS beat(4)3
Avg EPS beat(4)20.88%
Min EPS beat(4)-0.52%
Max EPS beat(4)54.51%
EPS beat(8)5
Avg EPS beat(8)9.34%
EPS beat(12)7
Avg EPS beat(12)4.91%
EPS beat(16)10
Avg EPS beat(16)253.91%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-6.22%
Max Revenue beat(2)8.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.36%
Revenue beat(8)2
Avg Revenue beat(8)-8.16%
Revenue beat(12)5
Avg Revenue beat(12)20.24%
Revenue beat(16)9
Avg Revenue beat(16)46.06%
PT rev (1m)9.1%
PT rev (3m)-0.23%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.53 | ||
| P/FCF | 47.03 | ||
| P/OCF | 4.21 | ||
| P/B | 0.74 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 10.94 |
EPS(TTM)2.18
EY9.62%
EPS(NY)2.44
Fwd EY10.75%
FCF(TTM)0.48
FCFY2.13%
OCF(TTM)5.38
OCFY23.74%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)2.85
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.18% | ||
| ROCE | 4.38% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 4.64% | ||
| OM | 7.97% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.65% | ||
| FCFM | 1.13% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 300.62% | ||
| Cap/Sales | 11.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.92% | ||
| Profit Quality | 25.62% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.83 |
F-Score5
WACC7%
ROIC/WACC0.49
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)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.67%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
EBIT growth 1Y-5.4%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.74%
EBIT Next 3Y16.7%
EBIT Next 5Y10.8%
FCF growth 1Y126.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.54%
OCF growth 3Y27.73%
OCF growth 5Y19.91%