ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
TSX:ALA-PR-G - CA0213618865
25.26 CAD
-0.22 (-0.86%)
ALA-PR-G gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Gas Utilities industry. ALA-PR-G scores excellent on profitability, but there are concerns on its financial health. ALA-PR-G is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALA-PR-G had positive earnings in the past year.
In the past year ALA-PR-G had a positive cash flow from operations.
Each year in the past 5 years ALA-PR-G has been profitable.
Each year in the past 5 years ALA-PR-G had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALA-PR-G (3.08%) is better than 87.50% of its industry peers.
With an excellent Return On Equity value of 9.04%, ALA-PR-G belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Invested Capital of ALA-PR-G (4.39%) is better than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA-PR-G is in line with the industry average of 4.90%.
The last Return On Invested Capital (4.39%) for ALA-PR-G is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
ALA-PR-G has a better Profit Margin (6.07%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of ALA-PR-G has declined.
Looking at the Operating Margin, with a value of 9.88%, ALA-PR-G 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-G has grown nicely.
ALA-PR-G has a Gross Margin of 27.70%. This is in the better half of the industry: ALA-PR-G outperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of ALA-PR-G 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA-PR-G is destroying value.
ALA-PR-G has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALA-PR-G has been increased compared to 5 years ago.
The debt/assets ratio for ALA-PR-G has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that ALA-PR-G is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, ALA-PR-G is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ALA-PR-G is 1624.33, which is on the high side as it means it would take ALA-PR-G, 1624.33 years of fcf income to pay off all of its debts.
ALA-PR-G has a Debt to FCF ratio (1624.33) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-G has dependencies on debt financing.
ALA-PR-G has a better Debt to Equity ratio (1.08) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.51%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALA-PR-G may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, ALA-PR-G belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-G has a Quick Ratio of 0.96. This is a bad value and indicates that ALA-PR-G is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ALA-PR-G (0.74) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ALA-PR-G 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-G 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.
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
Based on estimates for the next years, ALA-PR-G will show a decrease in Earnings Per Share. The EPS will decrease by -0.15% on average per year.
Based on estimates for the next years, ALA-PR-G will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
EPS Next Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
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
Based on the Price/Earnings ratio of 10.94, the valuation of ALA-PR-G can be described as reasonable.
ALA-PR-G's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-G is cheaper than 75.00% of the companies in the same industry.
ALA-PR-G is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.37 indicates a reasonable valuation of ALA-PR-G.
Based on the Price/Forward Earnings ratio, ALA-PR-G is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ALA-PR-G is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALA-PR-G.
ALA-PR-G's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1259.59 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALA-PR-G does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALA-PR-G may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)0.83
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, ALA-PR-G is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.07, ALA-PR-G pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ALA-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of ALA-PR-G has a limited annual growth rate of 0.74%.
ALA-PR-G has been paying a dividend for at least 10 years, so it has a reliable track record.
ALA-PR-G has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
ALA-PR-G 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 2Y5.72%
EPS Next 3Y8.29%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (9/5/2025, 7:00:00 PM)
25.26
-0.22 (-0.86%)
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 Cap7.56B
Analysts74.67
Price Target27.57 (9.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years1
Div Non Decr Years4
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)3.6%
PT rev (3m)1.73%
EPS NQ rev (1m)14.73%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.59 | ||
| P/FCF | 1259.59 | ||
| P/OCF | 4.97 | ||
| P/B | 0.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 9.62 |
EPS(TTM)2.31
EY9.14%
EPS(NY)2.44
Fwd EY9.65%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.13%
SpS42.89
BVpS28.8
TBVpS10.33
PEG (NY)2.43
PEG (5Y)0.83
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
WACC5.51%
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 Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
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 Year42.74%
EBIT Next 3Y16.7%
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%