ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
TSX:ALA - Toronto Stock Exchange - CA0213611001 - Common Stock - Currency: CAD
Overall ALA gets a fundamental rating of 3 out of 10. We evaluated ALA against 8 industry peers in the Gas Utilities industry. ALA has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, ALA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ALA had positive earnings in the past year.
ALA had a positive operating cash flow in the past year.
Each year in the past 5 years ALA has been profitable.
ALA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALA (2.15%) is better than 62.50% of its industry peers.
The Return On Equity of ALA (6.18%) is better than 62.50% of its industry peers.
ALA has a worse Return On Invested Capital (3.44%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA 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
Looking at the Profit Margin, with a value of 4.40%, ALA is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of ALA has declined.
With a Operating Margin value of 7.97%, ALA is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ALA has grown nicely.
ALA's Gross Margin of 25.65% is on the low side compared to the rest of the industry. ALA is outperformed by 75.00% of its industry peers.
In the last couple of years the Gross Margin of ALA has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, ALA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that ALA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALA (1.00) is better than 100.00% of its industry peers.
The Debt to FCF ratio of ALA is 68.55, which is on the high side as it means it would take ALA, 68.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALA (68.55) is worse than 75.00% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that ALA has dependencies on debt financing.
The Debt to Equity ratio of ALA (1.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 1 |
ROIC/WACC0.49
WACC7.07%
2.3 Liquidity
ALA has a Current Ratio of 0.95. 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 has a Current ratio of 0.95. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
A Quick Ratio of 0.78 indicates that ALA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, ALA is doing worse than 62.50% of the companies in the same industry.
| 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.
Measured over the past years, ALA 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 1.25% 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)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
ALA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.67% yearly.
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 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 17.60, ALA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ALA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.57, ALA is valued a bit cheaper.
ALA is valuated correctly with a Price/Forward Earnings ratio of 15.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA indicates a slightly more expensive valuation: ALA is more expensive than 62.50% of the companies listed in the same industry.
ALA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA indicates a slightly more expensive valuation: ALA is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALA is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.64 | ||
| EV/EBITDA | 14.05 |
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)4.83
PEG (5Y)1.33
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.25%, ALA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.26, ALA pays a better dividend. On top of this ALA pays more dividend than 87.50% of the companies listed in the same industry.
ALA'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 has a limited annual growth rate of 0.74%.
ALA has been paying a dividend for at least 10 years, so it has a reliable track record.
As ALA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.74%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ALA pays out 67.26% of its income as dividend. This is not a sustainable payout ratio.
ALA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA (6/16/2025, 7:00:00 PM)
38.37
-0.37 (-0.96%)
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 Cap11.47B
Analysts74.29
Price Target42.16 (9.88%)
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 Years5
Div Non Decr Years5
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)0%
PT rev (3m)6.53%
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)0%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 15.75 | ||
| P/S | 0.9 | ||
| P/FCF | 79.64 | ||
| P/OCF | 7.13 | ||
| P/B | 1.26 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)2.18
EY5.68%
EPS(NY)2.44
Fwd EY6.35%
FCF(TTM)0.48
FCFY1.26%
OCF(TTM)5.38
OCFY14.02%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)4.83
PEG (5Y)1.33
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 | 1 |
F-Score5
WACC7.07%
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%