ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
42.74 CAD
+0.23 (+0.54%)
ALA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 8 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.
ALA had a positive operating cash flow in the past year.
In the past 5 years ALA has always been profitable.
In the past 5 years ALA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALA (3.08%) is better than 62.50% of its industry peers.
ALA has a Return On Equity of 9.04%. This is in the better half of the industry: ALA outperforms 62.50% of its industry peers.
With a Return On Invested Capital value of 4.39%, ALA is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ALA is in line with the industry average of 4.90%.
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 62.50% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
The Operating Margin of ALA (9.88%) is comparable to the rest of the industry.
ALA's Operating Margin has improved in the last couple of years.
The Gross Margin of ALA (27.70%) is worse than 62.50% of its industry peers.
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
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.
ALA has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of ALA (1.12) is better than 100.00% of its industry peers.
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 is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.72
WACC6.08%
2.3 Liquidity
ALA has a Current 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 Current ratio of 0.96 is fine compared to the rest of the industry. ALA outperforms 62.50% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, ALA is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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%.
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
Based on estimates for the next years, ALA will show a decrease in Earnings Per Share. The EPS will decrease by -0.15% on average per year.
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 5Y-0.15%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
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
ALA is valuated rather expensively with a Price/Earnings ratio of 18.50.
ALA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.67, ALA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.55, the valuation of ALA can be described as rather expensive.
ALA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ALA is more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (23.13), we can say ALA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 17.55 |
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.
75.00% of the companies in the same industry are cheaper than ALA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2133.22 | ||
| EV/EBITDA | 12.59 |
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)4.16
PEG (5Y)1.4
EPS Next 2Y5.69%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 2.93%. 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 3.07. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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
49.55% of the earnings are spent on dividend by ALA. This is a bit on the high side, but may be sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA (9/29/2025, 7:00:00 PM)
42.74
+0.23 (+0.54%)
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 Cap12.80B
Analysts74.67
Price Target44.37 (3.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)5.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)-0.06%
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 | 18.5 | ||
| Fwd PE | 17.55 | ||
| P/S | 1 | ||
| P/FCF | 2133.22 | ||
| P/OCF | 8.42 | ||
| P/B | 1.49 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)2.31
EY5.4%
EPS(NY)2.44
Fwd EY5.7%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY11.88%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)4.16
PEG (5Y)1.4
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%
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-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
WACC6.08%
ROIC/WACC0.72
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 5Y-0.15%
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%