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 12 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.
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
The Return On Assets of ALA (2.15%) is better than 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 6.18%, ALA is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ALA's Return On Invested Capital of 3.44% is on the low side compared to the rest of the industry. ALA is outperformed by 62.50% 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 3.92%.
| 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
ALA has a better Profit Margin (4.40%) than 62.50% of its industry peers.
ALA's Profit Margin has declined in the last couple of years.
ALA's Operating Margin of 7.97% is on the low side compared to the rest of the industry. ALA is outperformed by 62.50% of its industry peers.
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.
ALA's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for ALA has been increased compared to 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
ALA has an Altman-Z score of 1.00. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ALA (1.00) is better than 100.00% of its industry peers.
ALA has a debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA would need 68.55 years to pay back of all of its debts.
ALA's Debt to FCF ratio of 68.55 is on the low side compared to the rest of the industry. ALA is outperformed by 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.
ALA has a Debt to Equity ratio of 1.02. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 1 |
ROIC/WACC0.5
WACC6.82%
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.
Looking at the Current ratio, with a value of 0.95, ALA is in line with its industry, outperforming 50.00% of the companies in the same industry.
ALA has a Quick 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's Quick ratio of 0.78 is on the low side compared to the rest of the industry. ALA is outperformed by 62.50% of its industry peers.
| 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.
ALA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
Looking at the last year, ALA shows a small growth in Revenue. The Revenue has grown by 1.25% 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)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
Based on estimates for the next years, ALA will show a decrease in Earnings Per Share. The EPS will decrease by -3.68% on average per year.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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
Based on the Price/Earnings ratio of 17.62, the valuation of ALA can be described as rather expensive.
ALA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. ALA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.77, ALA is valued correctly.
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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
75.00% 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 ratio is a bit more expensive when compared to the industry. ALA is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.74 | ||
| EV/EBITDA | 14.05 |
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)4.84
PEG (5Y)1.33
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
ALA's Dividend Yield is rather good when compared to the industry average which is at 5.89. ALA pays more dividend than 87.50% of the companies in the same industry.
ALA's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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.
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
67.26% of the earnings are spent on dividend by ALA. 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 (7/4/2025, 7:00:00 PM)
38.42
+0.03 (+0.08%)
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 Cap11.48B
Analysts74.29
Price Target42.16 (9.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0%
EPS NQ rev (3m)-1.18%
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 | 17.62 | ||
| Fwd PE | 15.77 | ||
| P/S | 0.9 | ||
| P/FCF | 79.74 | ||
| P/OCF | 7.14 | ||
| P/B | 1.26 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)2.18
EY5.67%
EPS(NY)2.44
Fwd EY6.34%
FCF(TTM)0.48
FCFY1.25%
OCF(TTM)5.38
OCFY14%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)4.84
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
WACC6.82%
ROIC/WACC0.5
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-3.68%
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%