ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
42.35 CAD
-0.34 (-0.8%)
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. ALA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
ALA had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 3.08%, ALA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.04%, ALA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
ALA has a Return On Invested Capital (4.39%) which is in line with its industry peers.
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 5.33%.
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
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.
Looking at the Operating Margin, with a value of 9.88%, ALA is in line with its industry, outperforming 50.00% of the companies in the same industry.
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
ALA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.12. 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 1.12. 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's Debt to FCF ratio of 1624.33 is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
ALA has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ALA's Debt to Equity ratio of 1.08 is fine compared to the rest of the industry. ALA outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.74
WACC5.96%
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 has a Quick ratio (0.74) which is comparable to the rest of the industry.
| 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.
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.
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
ALA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.17% yearly.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
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.
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
The Price/Earnings ratio is 18.33, which indicates a rather expensive current valuation of ALA.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ALA is valued a bit cheaper.
ALA is valuated rather expensively with a Price/Forward Earnings ratio of 17.39.
ALA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (23.09), we can say ALA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 17.39 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2113.76 | ||
| EV/EBITDA | 12.58 |
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)4.12
PEG (5Y)1.38
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.
ALA's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| 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 (10/27/2025, 7:00:00 PM)
42.35
-0.34 (-0.8%)
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 Cap12.68B
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target44.37 (4.77%)
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 | 18.33 | ||
| Fwd PE | 17.39 | ||
| P/S | 0.99 | ||
| P/FCF | 2113.76 | ||
| P/OCF | 8.34 | ||
| P/B | 1.47 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 12.58 |
EPS(TTM)2.31
EY5.45%
EPS(NY)2.44
Fwd EY5.75%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY11.99%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)4.12
PEG (5Y)1.38
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 | 1.12 |
F-Score6
WACC5.96%
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%.