ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
TSX:ALA-PR-G - Toronto Stock Exchange - CA0213618865 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to ALA-PR-G. ALA-PR-G was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-G was profitable.
ALA-PR-G had a positive operating cash flow in the past year.
ALA-PR-G had positive earnings in each of the past 5 years.
Each year in the past 5 years ALA-PR-G had a positive operating cash flow.
1.2 Ratios
ALA-PR-G has a Return On Assets of 2.15%. This is in the better half of the industry: ALA-PR-G outperforms 75.00% of its industry peers.
ALA-PR-G has a Return On Equity of 6.18%. This is in the better half of the industry: ALA-PR-G outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.44%, ALA-PR-G is doing worse than 62.50% of the companies in the same industry.
ALA-PR-G had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 4.53%.
| 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's Profit Margin of 4.40% is fine compared to the rest 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.
With a Operating Margin value of 7.97%, 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 Operating Margin has improved in the last couple of years.
The Gross Margin of ALA-PR-G (25.65%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA-PR-G is destroying value.
The number of shares outstanding for ALA-PR-G has been increased compared to 1 year ago.
Compared to 5 years ago, ALA-PR-G has more shares outstanding
The debt/assets ratio for ALA-PR-G has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.85, 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 debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA-PR-G would need 68.55 years to pay back of 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 better Debt to Equity ratio (1.02) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.65
WACC5.3%
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 has a better Current ratio (0.95) than 62.50% of its industry peers.
ALA-PR-G has a Quick 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 has a Quick ratio of 0.78. This is comparable to the rest of the industry: ALA-PR-G outperforms 50.00% 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 been growing slightly by 6.34% over the past year.
ALA-PR-G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
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.
Measured over the past years, ALA-PR-G shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
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
Based on estimates for the next years, ALA-PR-G will show a small growth in Earnings Per Share. The EPS will grow by 2.55% on average per year.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
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.
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
A Price/Earnings ratio of 11.17 indicates a reasonable valuation of ALA-PR-G.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.17, ALA-PR-G is valued rather cheaply.
A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of ALA-PR-G.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA-PR-G indicates a somewhat cheap valuation: ALA-PR-G is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ALA-PR-G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.99 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALA-PR-G indicates a slightly more expensive valuation: ALA-PR-G is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.52 | ||
| EV/EBITDA | 11.26 |
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)3.07
PEG (5Y)0.84
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-G has a Yearly Dividend Yield of 3.31%.
Compared to an average industry Dividend Yield of 3.36, ALA-PR-G pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ALA-PR-G pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
ALA-PR-G pays out 67.26% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ALA-PR-G is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (5/28/2025, 7:00:00 PM)
24.34
-0.41 (-1.66%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners0.62%
Ins Owner ChangeN/A
Market Cap7.27B
Analysts75.71
Price Target23.36 (-4.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)-4.51%
PT rev (3m)-15.71%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)25.2%
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)-3.48%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.57 | ||
| P/FCF | 50.52 | ||
| P/OCF | 4.52 | ||
| P/B | 0.8 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)2.18
EY8.96%
EPS(NY)2.44
Fwd EY10.01%
FCF(TTM)0.48
FCFY1.98%
OCF(TTM)5.38
OCFY22.1%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)3.07
PEG (5Y)0.84
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
WACC5.3%
ROIC/WACC0.65
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 5Y2.55%
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 5Y12.5%
FCF growth 1Y126.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.54%
OCF growth 3Y27.73%
OCF growth 5Y19.91%