ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA-PR-B - CA0213613080
24.98 CAD
+0.01 (+0.04%)
Taking everything into account, ALA-PR-B scores 5 out of 10 in our fundamental rating. ALA-PR-B was compared to 6 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 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.
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 3.08%. This is amongst the best in the industry. ALA-PR-B outperforms 100.00% of its industry peers.
ALA-PR-B's Return On Equity of 9.04% is amongst the best of the industry. ALA-PR-B outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.39%, ALA-PR-B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALA-PR-B is significantly below the industry average of 10.35%.
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
Looking at the Profit Margin, with a value of 6.07%, ALA-PR-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-B's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.88%, ALA-PR-B is in the better half of the industry, outperforming 75.00% 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 better Gross Margin (27.70%) than 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 | 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
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 0.93, 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 0.93. 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 1624.33. This is a negative value and a sign of low solvency as ALA-PR-B would need 1624.33 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1624.33, ALA-PR-B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
ALA-PR-B has a better Debt to Equity ratio (1.08) 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
A Current Ratio of 0.96 indicates that ALA-PR-B may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, ALA-PR-B belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 0.74 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.
The Revenue has been growing slightly by 0.65% in the past year.
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)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
ALA-PR-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.17% yearly.
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 5Y0.17%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
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.
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
The Price/Earnings ratio is 10.81, which indicates a very decent valuation of ALA-PR-B.
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.
ALA-PR-B is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent 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.
The average S&P500 Price/Forward Earnings ratio is at 36.12. ALA-PR-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than ALA-PR-B, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALA-PR-B is valued a bit cheaper than 75.00% of the companies in the same industry.
| 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 decent 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 2.92%.
Compared to an average industry Dividend Yield of 3.08, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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.
ALA-PR-B's earnings are growing slower than its dividend. This means the dividend growth is not 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
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target26.07 (4.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)-1.3%
PT rev (3m)2.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.92%
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
Graham NumberN/A
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%
ROICexgc growth 3Y-2.78%
ROICexgc 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 5Y0.17%
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%
ALTAGAS LTD - ALACN 5.08 PERP / ALA-PR-B.CA FAQ
Can you provide the ChartMill fundamental rating for ALTAGAS LTD - ALACN 5.08 PERP?
ChartMill assigns a fundamental rating of 6 / 10 to ALA-PR-B.CA.
What is the valuation status for ALA-PR-B stock?
ChartMill assigns a valuation rating of 7 / 10 to ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA). This can be considered as Undervalued.
Can you provide the profitability details for ALTAGAS LTD - ALACN 5.08 PERP?
ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) has a profitability rating of 8 / 10.
What is the valuation of ALTAGAS LTD - ALACN 5.08 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) is 10.81 and the Price/Book (PB) ratio is 0.87.
What is the expected EPS growth for ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) stock?
The Earnings per Share (EPS) of ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) is expected to grow by 4.45% in the next year.