ALTAGAS LTD - ALACN 5.32 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
TSX:ALA-PR-B - Toronto Stock Exchange - CA0213613080 - Currency: CAD
Taking everything into account, ALA-PR-B scores 5 out of 10 in our fundamental rating. ALA-PR-B was compared to 8 industry peers in the Gas Utilities industry. ALA-PR-B has an excellent profitability rating, but there are some minor concerns on its financial health. ALA-PR-B has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALA-PR-B had positive earnings in the past year.
ALA-PR-B had a positive operating cash flow in the past year.
In the past 5 years ALA-PR-B has always been profitable.
ALA-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 2.15%, ALA-PR-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of ALA-PR-B (6.18%) is better than 100.00% 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 75.00% 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 has a better Profit Margin (4.40%) than 100.00% of its industry peers.
ALA-PR-B's Profit Margin has declined in the last couple of years.
ALA-PR-B has a Operating Margin of 7.97%. This is in the better half of the industry: ALA-PR-B outperforms 75.00% of its industry peers.
ALA-PR-B's Operating Margin has improved in the last couple of years.
ALA-PR-B has a better Gross Margin (25.65%) than 62.50% of its industry peers.
ALA-PR-B's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for ALA-PR-B has been increased compared to 1 year ago.
Compared to 5 years ago, ALA-PR-B has more shares outstanding
Compared to 1 year ago, ALA-PR-B has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that ALA-PR-B is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.85, ALA-PR-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-B has a debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA-PR-B would need 68.55 years to pay back of all of its debts.
The Debt to FCF ratio of ALA-PR-B (68.55) is better than 62.50% of its industry peers.
ALA-PR-B has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
ALA-PR-B's Debt to Equity ratio of 1.02 is amongst the best of the industry. ALA-PR-B outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.64
WACC5.41%
2.3 Liquidity
ALA-PR-B has a Current Ratio of 0.95. This is a bad value and indicates that ALA-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ALA-PR-B (0.95) is better than 87.50% of its industry peers.
ALA-PR-B has a Quick Ratio of 0.95. This is a bad value and indicates that ALA-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.78, ALA-PR-B is in the better half of 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
The Earnings Per Share has been growing slightly by 6.34% 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-B shows a small growth in Revenue. In the last year, the Revenue has grown by 1.25%.
ALA-PR-B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.77% yearly.
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
ALA-PR-B is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.68% yearly.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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
With a Price/Earnings ratio of 11.38, the valuation of ALA-PR-B can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than ALA-PR-B, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALA-PR-B to the average of the S&P500 Index (27.46), we can say ALA-PR-B is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.18, the valuation of ALA-PR-B can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA-PR-B indicates a rather cheap valuation: ALA-PR-B is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, ALA-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA-PR-B is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALA-PR-B is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.53 | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALA-PR-B does not grow enough to justify the current Price/Earnings ratio.
ALA-PR-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.12
PEG (5Y)0.86
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, ALA-PR-B has a reasonable but not impressive dividend return.
ALA-PR-B's Dividend Yield is comparable with the industry average which is at 3.18.
ALA-PR-B's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of ALA-PR-B has a limited annual growth rate of 0.74%.
ALA-PR-B has paid a dividend for at least 10 years, which is 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
ALA-PR-B pays out 67.26% of its income as dividend. 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 (7/21/2025, 7:00:00 PM)
24.8
+0.2 (+0.81%)
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 Cap7.42B
Analysts74.67
Price Target24.93 (0.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)0.5%
PT rev (3m)11.37%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 11.38 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.58 | ||
| P/FCF | 51.53 | ||
| P/OCF | 4.61 | ||
| P/B | 0.82 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)2.18
EY8.79%
EPS(NY)2.44
Fwd EY9.83%
FCF(TTM)0.48
FCFY1.94%
OCF(TTM)5.37
OCFY21.67%
SpS42.66
BVpS30.4
TBVpS11.05
PEG (NY)3.12
PEG (5Y)0.86
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 | 0.85 |
F-Score5
WACC5.41%
ROIC/WACC0.64
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-3.68%
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%