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%)
Overall ALA-PR-A gets a fundamental rating of 5 out of 10. We evaluated ALA-PR-A against 6 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 is not valued too expensively and it also shows a decent growth rate.
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.
ALA-PR-A had positive earnings in each of the past 5 years.
Each year in the past 5 years ALA-PR-A had a positive operating cash flow.
1.2 Ratios
ALA-PR-A has a Return On Assets of 3.08%. This is amongst the best in the industry. ALA-PR-A outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.04%, ALA-PR-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-A's Return On Invested Capital of 4.39% is fine compared to the rest of the industry. ALA-PR-A outperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
ALA-PR-A has a better Profit Margin (6.07%) than 100.00% of its industry peers.
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 71.43% of its industry peers.
In the last couple of years the Operating Margin of ALA-PR-A has grown nicely.
ALA-PR-A has a Gross Margin (27.70%) which is in line with its industry peers.
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
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.
The number of shares outstanding for ALA-PR-A has been increased compared to 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.
The Altman-Z score of ALA-PR-A (0.93) is better than 71.43% 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.
ALA-PR-A's Debt to FCF ratio of 1624.33 is fine compared to the rest of the industry. ALA-PR-A outperforms 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.
Looking at the Debt to Equity ratio, with a value of 1.08, ALA-PR-A belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| 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.
With an excellent Current ratio value of 0.96, ALA-PR-A belongs to the best of the industry, outperforming 85.71% 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.
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
The Earnings Per Share has grown by an nice 8.45% over the past year.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
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
Based on estimates for the next years, ALA-PR-A will show a small growth in Earnings Per Share. The EPS will grow by 0.17% 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 3.46% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 10.82, the valuation of ALA-PR-A can be described as reasonable.
85.71% of the companies in the same industry are more expensive than ALA-PR-A, based on the Price/Earnings ratio.
ALA-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
ALA-PR-A is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
71.43% of the companies in the same industry are more expensive than ALA-PR-A, based on the Price/Forward Earnings ratio.
ALA-PR-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| 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.
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
ALA-PR-A has a Yearly Dividend Yield of 2.98%. 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 2.13.
Compared to an average S&P500 Dividend Yield of 2.00, ALA-PR-A pays a bit more dividend than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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
ALA-PR-A pays out 49.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
ALA-PR-A's earnings are growing slower than its dividend. This means the dividend growth is not 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
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target26.08 (4.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-3.07%
PT rev (3m)4.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.92%
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
Graham NumberN/A
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%
ROICexgc growth 3Y-2.78%
ROICexgc 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 5Y0.17%
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%
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%.