ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
42.17 CAD
0 (0%)
Overall ALA gets a fundamental rating of 5 out of 10. We evaluated ALA against 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. ALA has a decent growth rate and is not valued too expensively. 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.
In the past 5 years ALA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 2.87%, ALA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
ALA has a better Return On Equity (8.75%) than 83.33% of its industry peers.
The Return On Invested Capital of ALA (4.37%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA is in line with the industry average of 5.31%.
The 3 year average ROIC (3.44%) for ALA is below the current ROIC(4.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 8.75% | ||
| ROIC | 4.37% |
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 better Profit Margin (5.88%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
With a Operating Margin value of 10.21%, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ALA's Operating Margin has improved in the last couple of years.
ALA has a worse Gross Margin (28.43%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of ALA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.21% | ||
| PM (TTM) | 5.88% | ||
| GM | 28.43% |
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.
The number of shares outstanding for ALA has been increased compared to 5 years ago.
Compared to 1 year ago, ALA has an improved debt to assets ratio.
2.2 Solvency
ALA has an Altman-Z score of 1.07. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
ALA has a Altman-Z score of 1.07. This is amongst the best in the industry. ALA outperforms 100.00% of its industry peers.
ALA has a debt to FCF ratio of 2558.25. This is a negative value and a sign of low solvency as ALA would need 2558.25 years to pay back of all of its debts.
The Debt to FCF ratio of ALA (2558.25) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that ALA has dependencies on debt financing.
ALA has a Debt to Equity ratio of 1.15. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.73
WACC5.97%
2.3 Liquidity
A Current Ratio of 0.88 indicates that ALA may have some problems paying its short term obligations.
The Current ratio of ALA (0.88) is better than 66.67% of its industry peers.
A Quick Ratio of 0.63 indicates that ALA may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.84% 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 1.55% in the past year.
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)1.84%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
3.2 Future
The Earnings Per Share is expected to grow by 4.14% on average over the next years.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
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
With a Price/Earnings ratio of 19.08, ALA is valued on the expensive side.
Based on the Price/Earnings ratio, ALA is valued a bit cheaper than 66.67% of the companies in the same industry.
ALA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 17.94, ALA is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ALA.
The average S&P500 Price/Forward Earnings ratio is at 23.46. ALA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
ALA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALA is more expensive than 66.67% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than ALA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3279.77 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ALA may justify a higher PE ratio.
PEG (NY)5.84
PEG (5Y)1.44
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.17%, ALA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.13, ALA pays a better dividend. On top of this ALA pays more dividend than 83.33% of the companies listed in the same industry.
ALA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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.
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 52.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ALA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.48%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
TSX:ALA (12/24/2025, 7:00:00 PM)
42.17
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.41%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap13.12B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target47.57 (12.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.12%
Min EPS beat(2)-27.05%
Max EPS beat(2)14.8%
EPS beat(4)2
Avg EPS beat(4)-1.65%
Min EPS beat(4)-27.05%
Max EPS beat(4)14.8%
EPS beat(8)5
Avg EPS beat(8)9.48%
EPS beat(12)7
Avg EPS beat(12)5.48%
EPS beat(16)9
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-6.73%
Min Revenue beat(2)-9.48%
Max Revenue beat(2)-3.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)8.03%
Revenue beat(8)2
Avg Revenue beat(8)-6.34%
Revenue beat(12)3
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)23.78%
PT rev (1m)2.27%
PT rev (3m)7.21%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.94 | ||
| P/S | 1.04 | ||
| P/FCF | 3279.77 | ||
| P/OCF | 8.55 | ||
| P/B | 1.54 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | 12.94 |
EPS(TTM)2.21
EY5.24%
EPS(NY)2.35
Fwd EY5.58%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY11.69%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)5.84
PEG (5Y)1.44
Graham Number36.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 8.75% | ||
| ROCE | 5.57% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 5.81% | ||
| OM | 10.21% | ||
| PM (TTM) | 5.88% | ||
| GM | 28.43% | ||
| FCFM | 0.03% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 304.78% | ||
| Cap/Sales | 12.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.46% | ||
| Profit Quality | 0.54% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.07 |
F-Score7
WACC5.97%
ROIC/WACC0.73
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)1.84%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-71.43%
EPS Next Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year43.2%
EBIT Next 3Y18.82%
EBIT Next 5Y12.37%
FCF growth 1Y101.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y125.92%
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 5 / 10 to ALA.CA.
What is the valuation status of ALTAGAS LTD (ALA.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALTAGAS LTD (ALA.CA). This can be considered as Fairly Valued.
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 7 / 10 and the dividend payout ratio is 52.48%.