ALTAGAS LTD - ALACN 5.09 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-B - CA0213613080
24.98 CAD
+0.01 (+0.04%)
ALA-PR-B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Gas Utilities industry. ALA-PR-B scores excellent on profitability, but there are some minor concerns on its financial health. ALA-PR-B scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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 3.08%, ALA-PR-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.04%, ALA-PR-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-B's Return On Invested Capital of 4.39% 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 4.90%.
The 3 year average ROIC (3.44%) for ALA-PR-B 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
The Profit Margin of ALA-PR-B (6.07%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ALA-PR-B has declined.
ALA-PR-B has a better Operating Margin (9.88%) than 87.50% of its industry peers.
ALA-PR-B's Operating Margin has improved in the last couple of years.
The Gross Margin of ALA-PR-B (27.70%) is better than 75.00% of its industry peers.
ALA-PR-B's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA-PR-B is destroying value.
ALA-PR-B has more shares outstanding than it did 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
ALA-PR-B has an Altman-Z score of 0.93. This is a bad value and indicates that ALA-PR-B is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ALA-PR-B (0.93) is better than 62.50% of its industry peers.
The Debt to FCF ratio of ALA-PR-B is 1624.33, which is on the high side as it means it would take ALA-PR-B, 1624.33 years of fcf income to pay off all of its debts.
ALA-PR-B's Debt to FCF ratio of 1624.33 is fine compared to the rest of the industry. ALA-PR-B outperforms 62.50% of its industry peers.
ALA-PR-B has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALA-PR-B (1.08) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.47%
2.3 Liquidity
ALA-PR-B has a Current Ratio of 0.96. 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's Current ratio of 0.96 is amongst the best of the industry. ALA-PR-B outperforms 100.00% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA-PR-B may have some problems paying its short term obligations.
ALA-PR-B's Quick ratio of 0.74 is fine compared to the rest of the industry. ALA-PR-B outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
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 8.45%, 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.
Looking at the last year, ALA-PR-B shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
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
The Earnings Per Share is expected to decrease by -0.15% on average over the next years.
ALA-PR-B 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 5Y-0.15%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
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
With a Price/Earnings ratio of 10.81, the valuation of ALA-PR-B can be described as very reasonable.
ALA-PR-B's Price/Earnings ratio is rather cheap when compared to the industry. ALA-PR-B is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. ALA-PR-B is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of ALA-PR-B.
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.
ALA-PR-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA-PR-B indicates a somewhat cheap valuation: ALA-PR-B is cheaper than 62.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALA-PR-B is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1246.79 | ||
| EV/EBITDA | 9.58 |
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.
The excellent profitability rating of ALA-PR-B 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-B has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, ALA-PR-B has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ALA-PR-B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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 49.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA-PR-B (9/26/2025, 7:00:00 PM)
24.98
+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 Cap7.48B
Analysts74.67
Price Target27.1 (8.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)2.59%
PT rev (3m)6.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.47%
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 | 10.81 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.58 | ||
| P/FCF | 1246.79 | ||
| P/OCF | 4.92 | ||
| P/B | 0.87 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)2.31
EY9.25%
EPS(NY)2.44
Fwd EY9.75%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.33%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.43
PEG (5Y)0.82
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%
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-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 5Y-0.15%
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%