ALTAGAS LTD - ALACN 5.32 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
TSX:ALA-PR-B - Toronto Stock Exchange - CA0213613080 - Currency: CAD
Overall ALA-PR-B gets a fundamental rating of 5 out of 10. We evaluated ALA-PR-B against 8 industry peers in the Gas Utilities industry. ALA-PR-B has an excellent profitability rating, but there are concerns on its financial health. ALA-PR-B 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-B was profitable.
In the past year ALA-PR-B had a positive cash flow from operations.
ALA-PR-B had positive earnings in each of the past 5 years.
ALA-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALA-PR-B (2.15%) is better than 87.50% of its industry peers.
ALA-PR-B's Return On Equity of 6.18% is amongst the best of the industry. ALA-PR-B outperforms 87.50% of its industry peers.
ALA-PR-B has a Return On Invested Capital of 3.44%. This is in the better half of the industry: ALA-PR-B outperforms 62.50% of its industry peers.
ALA-PR-B 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
ALA-PR-B's Profit Margin of 4.40% is amongst the best of the industry. ALA-PR-B outperforms 87.50% of its industry peers.
ALA-PR-B's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.97%, ALA-PR-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of ALA-PR-B has grown nicely.
ALA-PR-B has a Gross Margin (25.65%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALA-PR-B 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-B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALA-PR-B has more shares outstanding than it did 1 year ago.
ALA-PR-B has more shares outstanding than it did 5 years ago.
ALA-PR-B has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that ALA-PR-B is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, ALA-PR-B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ALA-PR-B is 68.55, which is on the high side as it means it would take ALA-PR-B, 68.55 years of fcf income to pay off all of its debts.
ALA-PR-B has a Debt to FCF ratio (68.55) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
ALA-PR-B's Debt to Equity ratio of 1.02 is fine compared to the rest of the industry. ALA-PR-B outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.49
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ALA-PR-B may have some problems paying its short term obligations.
ALA-PR-B has a better Current ratio (0.95) than 75.00% of its industry peers.
A Quick Ratio of 0.78 indicates that ALA-PR-B may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, ALA-PR-B is in the better half of the industry, outperforming 62.50% 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-B shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.34%.
ALA-PR-B 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-B shows a small growth in Revenue. In the last year, the Revenue has grown by 1.25%.
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-B will show a decrease in Earnings Per Share. The EPS will decrease by -3.67% on average per year.
Based on estimates for the next years, ALA-PR-B will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
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.
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
With a Price/Earnings ratio of 10.60, the valuation of ALA-PR-B can be described as very reasonable.
Based on the Price/Earnings ratio, ALA-PR-B is valued a bit cheaper than 75.00% of the companies in the same industry.
ALA-PR-B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 9.48 indicates a reasonable valuation of ALA-PR-B.
ALA-PR-B's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-B is cheaper than 75.00% of the companies in the same industry.
ALA-PR-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
ALA-PR-B's Enterprise Value to EBITDA ratio is in line with the industry average.
ALA-PR-B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.94 | ||
| EV/EBITDA | 11.02 |
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-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)0.8
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-B has a Yearly Dividend Yield of 3.29%.
Compared to an average industry Dividend Yield of 3.26, ALA-PR-B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ALA-PR-B 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-B has a limited annual growth rate of 0.74%.
ALA-PR-B has been paying a dividend for at least 10 years, so it has a reliable track record.
ALA-PR-B has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
67.26% of the earnings are spent on dividend by ALA-PR-B. This is not a sustainable payout ratio.
ALA-PR-B's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA-PR-B (6/18/2025, 7:00:00 PM)
23.1
+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 Cap6.90B
Analysts74.29
Price Target25.42 (10.04%)
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 Years3
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)10.82%
PT rev (3m)-3.34%
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 | 10.6 | ||
| Fwd PE | 9.48 | ||
| P/S | 0.54 | ||
| P/FCF | 47.94 | ||
| P/OCF | 4.29 | ||
| P/B | 0.76 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)2.18
EY9.44%
EPS(NY)2.44
Fwd EY10.55%
FCF(TTM)0.48
FCFY2.09%
OCF(TTM)5.38
OCFY23.29%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)2.91
PEG (5Y)0.8
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 | 0.84 |
F-Score5
WACC7.01%
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%