ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
TSX:ALA - Toronto Stock Exchange - CA0213611001 - Common Stock - Currency: CAD
ALA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 7 industry peers in the Gas Utilities industry. While ALA is still in line with the averages on profitability rating, there are concerns on its financial health. ALA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
ALA had a positive operating cash flow in the past year.
In the past 5 years ALA has always been profitable.
In the past 5 years ALA always reported a positive cash flow from operatings.
1.2 Ratios
ALA has a Return On Assets (2.22%) which is in line with its industry peers.
With a Return On Equity value of 6.60%, ALA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ALA has a Return On Invested Capital of 3.50%. This is in the lower half of the industry: ALA underperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALA is in line with the industry average of 4.74%.
The 3 year average ROIC (3.44%) for ALA is below the current ROIC(3.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROIC | 3.5% |
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 has a Profit Margin (4.64%) which is comparable to the rest of the industry.
ALA's Profit Margin has declined in the last couple of years.
ALA's Operating Margin of 8.19% is in line compared to the rest of the industry. ALA outperforms 42.86% of its industry peers.
ALA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.08%, ALA is doing worse than 71.43% of the companies in the same industry.
ALA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% |
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 is destroying value.
The number of shares outstanding for ALA has been increased compared to 1 year ago.
ALA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that ALA is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.96, ALA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALA has a debt to FCF ratio of 67.32. This is a negative value and a sign of low solvency as ALA would need 67.32 years to pay back of all of its debts.
ALA has a worse Debt to FCF ratio (67.32) than 71.43% of its industry peers.
ALA has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.07, ALA perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.61
WACC5.78%
2.3 Liquidity
ALA has a Current Ratio of 0.81. This is a bad value and indicates that ALA is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA's Current ratio of 0.81 is on the low side compared to the rest of the industry. ALA is outperformed by 71.43% of its industry peers.
ALA has a Quick Ratio of 0.81. This is a bad value and indicates that ALA is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA's Quick ratio of 0.61 is on the low side compared to the rest of the industry. ALA is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.34% over the past year.
ALA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
ALA shows a decrease in Revenue. In the last year, the revenue decreased by -4.22%.
Measured over the past years, ALA shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
EPS 1Y (TTM)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
3.2 Future
ALA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.55% yearly.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue Next Year6.37%
Revenue Next 2Y6.1%
Revenue Next 3Y5.65%
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.
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
ALA is valuated rather expensively with a Price/Earnings ratio of 18.44.
The rest of the industry has a similar Price/Earnings ratio as ALA.
Compared to an average S&P500 Price/Earnings ratio of 28.22, ALA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.79, ALA is valued on the expensive side.
ALA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (20.86), we can say ALA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA is valued more expensive than 85.71% of the companies in the same industry.
ALA's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ALA is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.63 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.06
PEG (5Y)1.39
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, ALA has a reasonable but not impressive dividend return.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.36. ALA pays more dividend than 85.71% of the companies in the same industry.
ALA's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of ALA has a limited annual growth rate of 0.74%.
ALA has paid a dividend for at least 10 years, which is a reliable track record.
ALA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.74%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ALA pays out 64.19% of its income as dividend. This is not a sustainable payout ratio.
ALA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.19%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA (5/2/2025, 7:00:00 PM)
40.2
-0.02 (-0.05%)
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 Cap12.01B
Analysts75.71
Price Target40.35 (0.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP64.19%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.34%
Min EPS beat(2)6.18%
Max EPS beat(2)54.51%
EPS beat(4)4
Avg EPS beat(4)23.05%
Min EPS beat(4)6.18%
Max EPS beat(4)54.51%
EPS beat(8)6
Avg EPS beat(8)10.76%
EPS beat(12)8
Avg EPS beat(12)5.7%
EPS beat(16)11
Avg EPS beat(16)256.22%
Revenue beat(2)0
Avg Revenue beat(2)-10.27%
Min Revenue beat(2)-14.32%
Max Revenue beat(2)-6.22%
Revenue beat(4)1
Avg Revenue beat(4)-6.12%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.36%
Revenue beat(8)1
Avg Revenue beat(8)-9.78%
Revenue beat(12)5
Avg Revenue beat(12)22.3%
Revenue beat(16)9
Avg Revenue beat(16)47.89%
PT rev (1m)1.95%
PT rev (3m)4.09%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 17.79 | ||
| P/S | 0.97 | ||
| P/FCF | 80.63 | ||
| P/OCF | 7.81 | ||
| P/B | 1.37 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)2.18
EY5.42%
EPS(NY)2.26
Fwd EY5.62%
FCF(TTM)0.5
FCFY1.24%
OCF(TTM)5.15
OCFY12.8%
SpS41.65
BVpS29.28
TBVpS9.88
PEG (NY)5.06
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROCE | 4.51% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.72% | ||
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% | ||
| FCFM | 1.2% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 292.42% | ||
| Cap/Sales | 11.16% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 102.88% | ||
| Profit Quality | 25.78% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.96 |
F-Score5
WACC5.78%
ROIC/WACC0.61
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)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
Revenue Next Year6.37%
Revenue Next 2Y6.1%
Revenue Next 3Y5.65%
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year41.74%
EBIT Next 3Y16.76%
EBIT Next 5Y12.5%
FCF growth 1Y-16.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.2%
OCF growth 3Y27.73%
OCF growth 5Y19.91%