ALLIANT ENERGY CORP (LNT) Stock Fundamental Analysis
NASDAQ:LNT - Nasdaq - US0188021085 - Common Stock - Currency: USD
Overall LNT gets a fundamental rating of 4 out of 10. We evaluated LNT against 47 industry peers in the Electric Utilities industry. While LNT is still in line with the averages on profitability rating, there are concerns on its financial health. LNT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LNT had positive earnings in the past year.
LNT had a positive operating cash flow in the past year.
Each year in the past 5 years LNT has been profitable.
In the past 5 years LNT always reported a positive cash flow from operatings.
1.2 Ratios
LNT has a better Return On Assets (3.26%) than 63.83% of its industry peers.
The Return On Equity of LNT (10.50%) is comparable to the rest of the industry.
LNT has a Return On Invested Capital of 3.75%. This is in the lower half of the industry: LNT underperforms 70.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNT is significantly below the industry average of 38.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 10.5% | ||
| ROIC | 3.75% |
ROA(3y)3.25%
ROA(5y)3.35%
ROE(3y)10.39%
ROE(5y)10.52%
ROIC(3y)3.82%
ROIC(5y)3.72%
1.3 Margins
LNT has a better Profit Margin (18.26%) than 89.36% of its industry peers.
In the last couple of years the Profit Margin of LNT has grown nicely.
LNT has a Operating Margin of 24.05%. This is in the better half of the industry: LNT outperforms 65.96% of its industry peers.
In the last couple of years the Operating Margin of LNT has grown nicely.
LNT has a better Gross Margin (93.94%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of LNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.05% | ||
| PM (TTM) | 18.26% | ||
| GM | 93.94% |
OM growth 3Y3.12%
OM growth 5Y2.19%
PM growth 3Y-1.18%
PM growth 5Y2.56%
GM growth 3Y0.5%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LNT is destroying value.
LNT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNT has more shares outstanding
Compared to 1 year ago, LNT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that LNT is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.05, LNT is doing good in the industry, outperforming 65.96% of the companies in the same industry.
LNT has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.31, LNT is in line with its industry, outperforming 55.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.43
WACC8.64%
2.3 Liquidity
LNT has a Current Ratio of 0.34. This is a bad value and indicates that LNT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.34, LNT is not doing good in the industry: 93.62% of the companies in the same industry are doing better.
LNT has a Quick Ratio of 0.34. This is a bad value and indicates that LNT is not financially healthy enough and could expect problems in meeting its short term obligations.
LNT has a worse Quick ratio (0.24) than 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
LNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.19%, which is quite good.
The Earnings Per Share has been growing slightly by 4.62% on average over the past years.
The Revenue has been growing slightly by 2.44% in the past year.
The Revenue has been growing slightly by 1.76% on average over the past years.
EPS 1Y (TTM)12.19%
EPS 3Y3.68%
EPS 5Y4.62%
EPS Q2Q%33.87%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y2.76%
Revenue growth 5Y1.76%
Sales Q2Q%9.41%
3.2 Future
Based on estimates for the next years, LNT will show a small growth in Earnings Per Share. The EPS will grow by 7.97% on average per year.
LNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
EPS Next Y11.1%
EPS Next 2Y9.12%
EPS Next 3Y8.41%
EPS Next 5Y7.97%
Revenue Next Year2.16%
Revenue Next 2Y3.51%
Revenue Next 3Y4.1%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LNT is valuated rather expensively with a Price/Earnings ratio of 19.34.
LNT's Price/Earnings ratio is a bit more expensive when compared to the industry. LNT is more expensive than 61.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. LNT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.41, the valuation of LNT can be described as rather expensive.
LNT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, LNT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
76.60% of the companies in the same industry are cheaper than LNT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
LNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LNT may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)4.19
EPS Next 2Y9.12%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
LNT has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
LNT's Dividend Yield is comparable with the industry average which is at 3.69.
LNT's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of LNT is nicely growing with an annual growth rate of 6.44%!
LNT has been paying a dividend for at least 10 years, so it has a reliable track record.
LNT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.44%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
66.98% of the earnings are spent on dividend by LNT. This is not a sustainable payout ratio.
The dividend of LNT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.98%
EPS Next 2Y9.12%
EPS Next 3Y8.41%
60.54
+0.53 (+0.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.39%
Inst Owner Change1.87%
Ins Owners0.11%
Ins Owner Change5.98%
Market Cap15.55B
Analysts73.33
Price Target66.59 (9.99%)
Short Float %2.76%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend1.92
Dividend Growth(5Y)6.44%
DP66.98%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.59%
Min EPS beat(2)-15.65%
Max EPS beat(2)24.83%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-15.65%
Max EPS beat(4)24.83%
EPS beat(8)4
Avg EPS beat(8)1.1%
EPS beat(12)5
Avg EPS beat(12)-0.47%
EPS beat(16)8
Avg EPS beat(16)0.24%
Revenue beat(2)2
Avg Revenue beat(2)12.2%
Min Revenue beat(2)11.06%
Max Revenue beat(2)13.34%
Revenue beat(4)2
Avg Revenue beat(4)5.64%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)13.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)5
Avg Revenue beat(12)1.81%
Revenue beat(16)9
Avg Revenue beat(16)6.8%
PT rev (1m)0.01%
PT rev (3m)2.18%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)-9.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 17.41 | ||
| P/S | 3.81 | ||
| P/FCF | N/A | ||
| P/OCF | 14.02 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 14.28 |
EPS(TTM)3.13
EY5.17%
EPS(NY)3.48
Fwd EY5.74%
FCF(TTM)-3.97
FCFYN/A
OCF(TTM)4.32
OCFY7.13%
SpS15.88
BVpS27.61
TBVpS27.61
PEG (NY)1.74
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 10.5% | ||
| ROCE | 4.91% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 3.76% | ||
| OM | 24.05% | ||
| PM (TTM) | 18.26% | ||
| GM | 93.94% | ||
| FCFM | N/A |
ROA(3y)3.25%
ROA(5y)3.35%
ROE(3y)10.39%
ROE(5y)10.52%
ROIC(3y)3.82%
ROIC(5y)3.72%
ROICexc(3y)3.83%
ROICexc(5y)3.73%
ROICexgc(3y)3.83%
ROICexgc(5y)3.73%
ROCE(3y)4.97%
ROCE(5y)4.85%
ROICexcg growth 3Y-0.45%
ROICexcg growth 5Y-2.32%
ROICexc growth 3Y-0.45%
ROICexc growth 5Y-2.32%
OM growth 3Y3.12%
OM growth 5Y2.19%
PM growth 3Y-1.18%
PM growth 5Y2.56%
GM growth 3Y0.5%
GM growth 5Y0.1%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 268.01% | ||
| Cap/Sales | 52.17% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 1.05 |
F-Score4
WACC8.64%
ROIC/WACC0.43
Cap/Depr(3y)243.11%
Cap/Depr(5y)220.49%
Cap/Sales(3y)42.54%
Cap/Sales(5y)38.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.19%
EPS 3Y3.68%
EPS 5Y4.62%
EPS Q2Q%33.87%
EPS Next Y11.1%
EPS Next 2Y9.12%
EPS Next 3Y8.41%
EPS Next 5Y7.97%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y2.76%
Revenue growth 5Y1.76%
Sales Q2Q%9.41%
Revenue Next Year2.16%
Revenue Next 2Y3.51%
Revenue Next 3Y4.1%
Revenue Next 5Y4.94%
EBIT growth 1Y3.92%
EBIT growth 3Y5.97%
EBIT growth 5Y4%
EBIT Next Year76.54%
EBIT Next 3Y28.71%
EBIT Next 5Y20.91%
FCF growth 1Y5.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y162.18%
OCF growth 3Y26.1%
OCF growth 5Y12.06%