ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
TSX:ALA-PR-G - Toronto Stock Exchange - CA0213618865 - Currency: CAD
Overall ALA-PR-G gets a fundamental rating of 4 out of 10. We evaluated ALA-PR-G against 8 industry peers in the Gas Utilities industry. ALA-PR-G has a medium profitability rating, but doesn't score so well on its financial health evaluation. ALA-PR-G has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALA-PR-G had positive earnings in the past year.
ALA-PR-G had a positive operating cash flow in the past year.
In the past 5 years ALA-PR-G has always 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 (2.15%) is better than 75.00% of its industry peers.
ALA-PR-G's Return On Equity of 6.18% is fine compared to the rest of the industry. ALA-PR-G outperforms 75.00% of its industry peers.
The Return On Invested Capital of ALA-PR-G (3.44%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ALA-PR-G 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-G has a Profit Margin of 4.40%. This is in the better half of the industry: ALA-PR-G outperforms 75.00% of its industry peers.
ALA-PR-G's Profit Margin has declined in the last couple of years.
The Operating Margin of ALA-PR-G (7.97%) is comparable to the rest of the industry.
ALA-PR-G's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.65%, ALA-PR-G is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
ALA-PR-G's Gross Margin has declined in the last couple of years.
| 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
ALA-PR-G has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
ALA-PR-G has a better debt/assets ratio than last year.
2.2 Solvency
ALA-PR-G has an Altman-Z score of 0.85. This is a bad value and indicates that ALA-PR-G is not financially healthy and even has some risk of bankruptcy.
ALA-PR-G has a Altman-Z score of 0.85. This is amongst the best in the industry. ALA-PR-G outperforms 87.50% of its industry peers.
The Debt to FCF ratio of ALA-PR-G is 68.55, which is on the high side as it means it would take ALA-PR-G, 68.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALA-PR-G (68.55) is worse than 62.50% of its industry peers.
ALA-PR-G has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
ALA-PR-G has a Debt to Equity ratio of 1.02. This is in the better half of the industry: ALA-PR-G outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.49
WACC7.01%
2.3 Liquidity
ALA-PR-G has a Current Ratio of 0.95. 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.
ALA-PR-G's Current ratio of 0.95 is fine compared to the rest of the industry. ALA-PR-G outperforms 62.50% of its industry peers.
A Quick Ratio of 0.78 indicates that ALA-PR-G may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, ALA-PR-G perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ALA-PR-G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.34%.
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.
Looking at the last year, ALA-PR-G shows a small growth in Revenue. The Revenue has grown by 1.25% 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)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
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 decrease by -3.67% on average over the next years.
ALA-PR-G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.67%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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
With a Price/Earnings ratio of 11.21, the valuation of ALA-PR-G can be described as very reasonable.
62.50% of the companies in the same industry are more expensive than ALA-PR-G, based on the Price/Earnings ratio.
ALA-PR-G is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.03, which indicates a very decent 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 62.50% of the companies are valued more expensively.
ALA-PR-G is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than ALA-PR-G, based on the Enterprise Value to EBITDA ratio.
ALA-PR-G's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ALA-PR-G is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.7 | ||
| EV/EBITDA | 11.28 |
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.
PEG (NY)3.08
PEG (5Y)0.85
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-G has a Yearly Dividend Yield of 3.25%.
Compared to an average industry Dividend Yield of 3.26, ALA-PR-G pays a bit more dividend than its industry peers.
ALA-PR-G's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
The dividend of ALA-PR-G has a limited annual growth rate of 0.74%.
ALA-PR-G has paid a dividend for at least 10 years, which is 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
67.26% of the earnings are spent on dividend by ALA-PR-G. This is not a sustainable payout ratio.
The Dividend Rate of ALA-PR-G has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (6/20/2025, 7:00:00 PM)
24.43
-0.07 (-0.29%)
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 Cap7.30B
Analysts74.29
Price Target27.11 (10.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP67.26%
Div Incr Years1
Div Non Decr Years4
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)16.03%
PT rev (3m)-0.08%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.57 | ||
| P/FCF | 50.7 | ||
| P/OCF | 4.54 | ||
| P/B | 0.8 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)2.18
EY8.92%
EPS(NY)2.44
Fwd EY9.97%
FCF(TTM)0.48
FCFY1.97%
OCF(TTM)5.38
OCFY22.02%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)3.08
PEG (5Y)0.85
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
WACC7.01%
ROIC/WACC0.49
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)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.67%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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%