ALTAGAS LTD - ALACN 5.31 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. While ALA-PR-B belongs to the best of the industry regarding profitability, 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
In the past year ALA-PR-B was profitable.
ALA-PR-B had a positive operating cash flow in the past year.
Each year in the past 5 years ALA-PR-B has been profitable.
Each year in the past 5 years ALA-PR-B had a positive operating cash flow.
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 100.00% of its industry peers.
ALA-PR-B has a Return On Equity of 6.18%. This is amongst the best in the industry. ALA-PR-B outperforms 100.00% of its industry peers.
ALA-PR-B's Return On Invested Capital of 3.44% is fine compared to the rest of the industry. ALA-PR-B outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA-PR-B 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's Operating Margin of 7.97% is fine compared to the rest 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 Gross Margin of 25.65%. This is in the better half of the industry: ALA-PR-B outperforms 62.50% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA-PR-B is destroying value.
The number of shares outstanding for ALA-PR-B has been increased compared to 1 year ago.
The number of shares outstanding for ALA-PR-B has been increased compared to 5 years ago.
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.
ALA-PR-B has a Altman-Z score of 0.85. This is in the better half of the industry: ALA-PR-B outperforms 62.50% of its industry peers.
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.
ALA-PR-B's Debt to FCF ratio of 68.55 is fine compared to the rest of the industry. ALA-PR-B outperforms 62.50% of its industry peers.
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 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.
Looking at the Current ratio, with a value of 0.95, ALA-PR-B belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that ALA-PR-B may have some problems paying its short term obligations.
ALA-PR-B has a better Quick ratio (0.78) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
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-B shows a decrease in Revenue. In the last year, the revenue decreased by -4.22%.
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)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%2.49%
3.2 Future
The Earnings Per Share is expected to decrease by -3.68% on average over the next years.
Based on estimates for the next years, ALA-PR-B will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue Next Year2.88%
Revenue Next 2Y5%
Revenue Next 3Y5%
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
Based on the Price/Earnings ratio of 10.69, the valuation of ALA-PR-B can be described as reasonable.
Based on the Price/Earnings ratio, ALA-PR-B 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-B to the average of the S&P500 Index (27.11), we can say ALA-PR-B is valued rather cheaply.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of ALA-PR-B.
87.50% of the companies in the same industry are more expensive than ALA-PR-B, based on the Price/Forward Earnings ratio.
ALA-PR-B is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
ALA-PR-B's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALA-PR-B is cheaper than 62.50% of the companies in the same industry.
ALA-PR-B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALA-PR-B is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.3 | ||
| EV/EBITDA | 11.34 |
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)2.94
PEG (5Y)0.81
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-B has a Yearly Dividend Yield of 5.98%, which is a nice return.
Compared to an average industry Dividend Yield of 5.18, ALA-PR-B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ALA-PR-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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 (8/13/2025, 7:00:00 PM)
24.69
-0.16 (-0.64%)
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 Cap7.39B
Analysts74.67
Price Target24.93 (0.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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)-1.93%
PT rev (3m)11.37%
EPS NQ rev (1m)-5.41%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-25.41%
Revenue NQ rev (3m)-25.41%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.58 | ||
| P/FCF | 51.3 | ||
| P/OCF | 4.59 | ||
| P/B | 0.81 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)2.31
EY9.36%
EPS(NY)2.44
Fwd EY9.87%
FCF(TTM)0.48
FCFY1.95%
OCF(TTM)5.37
OCFY21.77%
SpS42.66
BVpS30.4
TBVpS11.05
PEG (NY)2.94
PEG (5Y)0.81
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)8.45%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%92.86%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%2.49%
Revenue Next Year2.88%
Revenue Next 2Y5%
Revenue Next 3Y5%
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%