ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
TSX:ALA - CA0213611001 - Common Stock
41.55 CAD
+0.2 (+0.48%)
Taking everything into account, ALA scores 3 out of 10 in our fundamental rating. ALA was compared to 7 industry peers in the Gas Utilities industry. There are concerns on the financial health of ALA while its profitability can be described as average. ALA is valied quite expensively at the moment, while it does show a decent growth rate. Finally ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ALA had positive earnings in the past year.
In the past year ALA had a positive cash flow from operations.
ALA had positive earnings in each of the past 5 years.
ALA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALA (3.08%) is comparable to the rest of the industry.
ALA has a Return On Equity (9.04%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.39%, ALA is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
ALA had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 5.30%.
The 3 year average ROIC (3.44%) for ALA 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
ALA's Profit Margin of 6.07% is in line compared to the rest of the industry. ALA outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
ALA has a Operating Margin of 9.88%. This is comparable to the rest of the industry: ALA outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of ALA has grown nicely.
The Gross Margin of ALA (27.70%) is worse than 71.43% of its industry peers.
In the last couple of years the Gross Margin of ALA 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA is destroying value.
ALA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALA has more shares outstanding
ALA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that ALA is in the distress zone and has some risk of bankruptcy.
ALA has a Altman-Z score of 1.10. This is amongst the best in the industry. ALA outperforms 100.00% of its industry peers.
ALA has a debt to FCF ratio of 1624.33. This is a negative value and a sign of low solvency as ALA would need 1624.33 years to pay back of all of its debts.
ALA has a worse Debt to FCF ratio (1624.33) than 85.71% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA has dependencies on debt financing.
ALA has a Debt to Equity ratio (1.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.72
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, ALA is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that ALA may have some problems paying its short term obligations.
ALA has a worse Quick ratio (0.74) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ALA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
Looking at the last year, ALA shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
ALA 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
Based on estimates for the next years, ALA will show a decrease in Earnings Per Share. The EPS will decrease by -0.15% on average per year.
ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
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
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
ALA is valuated rather expensively with a Price/Earnings ratio of 17.99.
The rest of the industry has a similar Price/Earnings ratio as ALA.
Compared to an average S&P500 Price/Earnings ratio of 27.07, ALA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.05, the valuation of ALA can be described as rather expensive.
71.43% of the companies in the same industry are cheaper than ALA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.59. ALA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA is valued a bit more expensive than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALA is valued more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2071.9 | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.99
PEG (5Y)1.36
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, ALA is a good candidate for dividend investing.
ALA's Dividend Yield is rather good when compared to the industry average which is at 5.07. ALA pays more dividend than 100.00% of the companies in the same industry.
ALA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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 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%
TSX:ALA (9/9/2025, 7:00:00 PM)
41.55
+0.2 (+0.48%)
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 Cap12.43B
Analysts74.67
Price Target44.37 (6.79%)
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 Years5
Div Non Decr Years5
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)4.32%
PT rev (3m)5.24%
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 | 17.99 | ||
| Fwd PE | 17.05 | ||
| P/S | 0.97 | ||
| P/FCF | 2071.9 | ||
| P/OCF | 8.17 | ||
| P/B | 1.44 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)2.31
EY5.56%
EPS(NY)2.44
Fwd EY5.86%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY12.24%
SpS42.89
BVpS28.8
TBVpS10.33
PEG (NY)3.99
PEG (5Y)1.36
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 | 1.1 |
F-Score6
WACC6.08%
ROIC/WACC0.72
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%