ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
41.77 CAD
-0.43 (-1.02%)
We assign a fundamental rating of 4 out of 10 to ALA. ALA was compared to 6 industry peers in the Gas Utilities industry. There are concerns on the financial health of ALA while its profitability can be described as average. While showing a medium growth rate, ALA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
In the past year ALA had a positive cash flow from operations.
In the past 5 years ALA has always been profitable.
ALA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALA has a Return On Assets of 3.08%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
ALA has a Return On Equity of 9.04%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
With a Return On Invested Capital value of 4.39%, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALA is in line with the industry average of 5.33%.
The last Return On Invested Capital (4.39%) for ALA is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
The Profit Margin of ALA (6.07%) is better than 83.33% of its industry peers.
ALA's Profit Margin has declined in the last couple of years.
ALA has a Operating Margin (9.88%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ALA has grown nicely.
Looking at the Gross Margin, with a value of 27.70%, ALA is doing worse than 66.67% of the companies in the same industry.
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
The debt/assets ratio for ALA has been reduced compared to a year ago.
2.2 Solvency
ALA has an Altman-Z score of 1.11. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.11, ALA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of ALA is 1624.33, which is on the high side as it means it would take ALA, 1624.33 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1624.33, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.08, ALA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.74
WACC5.94%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALA may have some problems paying its short term obligations.
ALA's Current ratio of 0.96 is fine compared to the rest of the industry. ALA outperforms 66.67% of its industry peers.
ALA has a Quick Ratio of 0.96. 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 0.74 is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% 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 small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 0.17% on average over the next years.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y0.17%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
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.
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
Based on the Price/Earnings ratio of 18.08, the valuation of ALA can be described as rather expensive.
ALA's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALA to the average of the S&P500 Index (26.76), we can say ALA is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.15, which indicates a rather expensive current valuation of ALA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, ALA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ALA, based on the Enterprise Value to EBITDA ratio.
ALA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2084.81 | ||
| EV/EBITDA | 12.43 |
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.
The decent profitability rating of ALA may justify a higher PE ratio.
PEG (NY)4.07
PEG (5Y)1.36
EPS Next 2Y5.69%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, ALA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, ALA pays a better dividend. On top of this ALA pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ALA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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
49.55% of the earnings are spent on dividend by ALA. This is a bit on the high side, but may be sustainable.
ALA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA (10/29/2025, 7:00:00 PM)
41.77
-0.43 (-1.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.36%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap12.51B
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target44.37 (6.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)0%
PT rev (3m)4.32%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)13.63%
EPS NY rev (1m)0%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 17.15 | ||
| P/S | 0.97 | ||
| P/FCF | 2084.81 | ||
| P/OCF | 8.22 | ||
| P/B | 1.45 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)2.31
EY5.53%
EPS(NY)2.44
Fwd EY5.83%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY12.16%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)4.07
PEG (5Y)1.36
Graham Number38.67
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%
ROICexgc growth 3Y-2.78%
ROICexgc 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 | 1.11 |
F-Score6
WACC5.94%
ROIC/WACC0.74
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 Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y0.17%
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 Year42.66%
EBIT Next 3Y16.67%
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%
ALTAGAS LTD / ALA.CA FAQ
What is the fundamental rating for ALA stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALA.CA.
What is the valuation status of ALTAGAS LTD (ALA.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ALTAGAS LTD (ALA.CA). This can be considered as Overvalued.
Can you provide the profitability details for ALTAGAS LTD?
ALTAGAS LTD (ALA.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for ALA stock?
The financial health rating of ALTAGAS LTD (ALA.CA) is 3 / 10.
Can you provide the dividend sustainability for ALA stock?
The dividend rating of ALTAGAS LTD (ALA.CA) is 6 / 10 and the dividend payout ratio is 49.55%.