ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA-PR-A - CA0213612090
25 CAD
+0.01 (+0.04%)
Overall ALA-PR-A gets a fundamental rating of 5 out of 10. We evaluated ALA-PR-A against 6 industry peers in the Gas Utilities industry. While ALA-PR-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALA-PR-A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-A was profitable.
ALA-PR-A had a positive operating cash flow in the past year.
In the past 5 years ALA-PR-A has always been profitable.
In the past 5 years ALA-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, ALA-PR-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.04%, ALA-PR-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of ALA-PR-A (4.39%) is better than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-A is significantly below the industry average of 10.35%.
The last Return On Invested Capital (4.39%) for ALA-PR-A 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
ALA-PR-A's Profit Margin of 6.07% is amongst the best of the industry. ALA-PR-A outperforms 100.00% of its industry peers.
ALA-PR-A's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.88%, ALA-PR-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
ALA-PR-A's Operating Margin has improved in the last couple of years.
ALA-PR-A has a Gross Margin of 27.70%. This is comparable to the rest of the industry: ALA-PR-A outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of ALA-PR-A 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA-PR-A is destroying value.
Compared to 1 year ago, ALA-PR-A has more shares outstanding
The number of shares outstanding for ALA-PR-A has been increased compared to 5 years ago.
The debt/assets ratio for ALA-PR-A has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that ALA-PR-A is in the distress zone and has some risk of bankruptcy.
ALA-PR-A's Altman-Z score of 0.93 is fine compared to the rest of the industry. ALA-PR-A outperforms 71.43% of its industry peers.
ALA-PR-A has a debt to FCF ratio of 1624.33. This is a negative value and a sign of low solvency as ALA-PR-A would need 1624.33 years to pay back of all of its debts.
ALA-PR-A has a Debt to FCF ratio of 1624.33. This is in the better half of the industry: ALA-PR-A outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-A has dependencies on debt financing.
The Debt to Equity ratio of ALA-PR-A (1.08) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.47%
2.3 Liquidity
ALA-PR-A has a Current Ratio of 0.96. This is a bad value and indicates that ALA-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.96, ALA-PR-A belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ALA-PR-A has a Quick Ratio of 0.96. This is a bad value and indicates that ALA-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA-PR-A has a Quick ratio of 0.74. This is in the better half of the industry: ALA-PR-A outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ALA-PR-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
ALA-PR-A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
ALA-PR-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
Measured over the past years, ALA-PR-A shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
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
The Earnings Per Share is expected to grow by 0.17% on average over the next years.
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 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.82 indicates a reasonable valuation of ALA-PR-A.
Compared to the rest of the industry, the Price/Earnings ratio of ALA-PR-A indicates a rather cheap valuation: ALA-PR-A is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. ALA-PR-A is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.27, the valuation of ALA-PR-A can be described as reasonable.
Based on the Price/Forward Earnings ratio, ALA-PR-A is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ALA-PR-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
ALA-PR-A's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ALA-PR-A is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1247.79 | ||
| EV/EBITDA | 9.58 |
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-PR-A may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)0.82
EPS Next 2Y5.69%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
ALA-PR-A has a Yearly Dividend Yield of 2.98%.
ALA-PR-A's Dividend Yield is comparable with the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.32, ALA-PR-A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of ALA-PR-A has a limited annual growth rate of 0.74%.
ALA-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
ALA-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
49.55% of the earnings are spent on dividend by ALA-PR-A. This is a bit on the high side, but may be sustainable.
The dividend of ALA-PR-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA-PR-A (9/29/2025, 7:00:00 PM)
25
+0.01 (+0.04%)
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 Cap7.49B
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target26.08 (4.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years0
Div Non Decr Years3
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)-3.07%
PT rev (3m)4.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.92%
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 | 10.82 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.58 | ||
| P/FCF | 1247.79 | ||
| P/OCF | 4.92 | ||
| P/B | 0.87 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)2.31
EY9.24%
EPS(NY)2.44
Fwd EY9.74%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.32%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.43
PEG (5Y)0.82
Graham NumberN/A
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 | 0.93 |
F-Score6
WACC5.47%
ROIC/WACC0.8
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 - ALACN 3.06 PERP / ALA-PR-A.CA FAQ
What is the ChartMill fundamental rating of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALA-PR-A.CA.
What is the valuation status of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA). This can be considered as Fairly Valued.
What is the profitability of ALA-PR-A stock?
ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for ALA-PR-A stock?
The Earnings per Share (EPS) of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) is expected to grow by 4.45% in the next year.
Can you provide the dividend sustainability for ALA-PR-A stock?
The dividend rating of ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) is 4 / 10 and the dividend payout ratio is 49.55%.