ALTAGAS LTD - ALACN 5.3 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 6 industry peers in the Gas Utilities industry. While ALA-PR-B is still in line with the averages on profitability rating, there are concerns on its financial health. ALA-PR-B has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ALA-PR-B had positive earnings in the past year.
In the past year ALA-PR-B had a positive cash flow from operations.
In the past 5 years ALA-PR-B has always been profitable.
In the past 5 years ALA-PR-B always reported a positive cash flow from operatings.
1.2 Ratios
ALA-PR-B has a Return On Assets of 2.15%. This is amongst the best in the industry. ALA-PR-B outperforms 85.71% of its industry peers.
ALA-PR-B has a better Return On Equity (6.18%) than 85.71% of its industry peers.
ALA-PR-B has a Return On Invested Capital of 3.44%. This is comparable to the rest of the industry: ALA-PR-B outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-B is in line with the industry average of 4.94%.
| 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
Looking at the Profit Margin, with a value of 4.40%, ALA-PR-B belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ALA-PR-B's Profit Margin has declined in the last couple of years.
The Operating Margin of ALA-PR-B (7.97%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALA-PR-B has grown nicely.
ALA-PR-B has a Gross Margin of 25.65%. This is comparable to the rest of the industry: ALA-PR-B outperforms 57.14% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA-PR-B is destroying value.
ALA-PR-B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALA-PR-B has been increased compared to 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 0.82, we must say that ALA-PR-B is in the distress zone and has some risk of bankruptcy.
ALA-PR-B's Altman-Z score of 0.82 is fine compared to the rest of the industry. ALA-PR-B outperforms 71.43% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 68.55, ALA-PR-B is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.02, ALA-PR-B is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.66
WACC5.23%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ALA-PR-B may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, ALA-PR-B is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
ALA-PR-B has a Quick ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ALA-PR-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.34%, which is quite good.
Measured over the past years, ALA-PR-B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.25% on average per year.
The Revenue has been growing slightly by 1.25% in the past year.
Measured over the past years, ALA-PR-B shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
EPS 1Y (TTM)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-4.59%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
3.2 Future
The Earnings Per Share is expected to grow by 2.55% on average over the next years.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue Next Year6.37%
Revenue Next 2Y6.1%
Revenue Next 3Y5.65%
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
A Price/Earnings ratio of 9.70 indicates a reasonable valuation of ALA-PR-B.
Based on the Price/Earnings ratio, ALA-PR-B is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALA-PR-B to the average of the S&P500 Index (24.29), we can say ALA-PR-B is valued rather cheaply.
ALA-PR-B is valuated reasonably with a Price/Forward Earnings ratio of 8.68.
Based on the Price/Forward Earnings ratio, ALA-PR-B is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, ALA-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 8.68 |
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 | 43.9 | ||
| EV/EBITDA | 10.63 |
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-B may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)0.73
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-B has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.37, ALA-PR-B has a dividend in line with its industry peers.
ALA-PR-B's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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
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 growing more than its dividend. This makes the dividend growth sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA-PR-B (4/23/2025, 7:00:00 PM)
21.15
+0.22 (+1.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners0.62%
Ins Owner ChangeN/A
Market Cap6.32B
Analysts75.71
Price Target22.38 (5.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP67.26%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-5.14%
PT rev (3m)-14.5%
EPS NQ rev (1m)-4.97%
EPS NQ rev (3m)20.41%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.5 | ||
| P/FCF | 43.9 | ||
| P/OCF | 3.93 | ||
| P/B | 0.7 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 10.63 |
EPS(TTM)2.18
EY10.31%
EPS(NY)2.44
Fwd EY11.52%
FCF(TTM)0.48
FCFY2.28%
OCF(TTM)5.38
OCFY25.44%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)2.66
PEG (5Y)0.73
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 | 0.82 |
F-Score5
WACC5.23%
ROIC/WACC0.66
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)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-4.59%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
Revenue Next Year6.37%
Revenue Next 2Y6.1%
Revenue Next 3Y5.65%
Revenue Next 5YN/A
EBIT growth 1Y-5.4%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year41.74%
EBIT Next 3Y16.76%
EBIT Next 5Y12.5%
FCF growth 1Y126.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.54%
OCF growth 3Y27.73%
OCF growth 5Y19.91%