ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-A - CA0213612090
25 CAD
+0.01 (+0.04%)
We assign a fundamental rating of 5 out of 10 to ALA-PR-A. ALA-PR-A was compared to 6 industry peers in the Gas Utilities industry. While ALA-PR-A has a great profitability rating, there are some minor concerns on its financial health. ALA-PR-A has a correct valuation and a medium growth rate.
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.
ALA-PR-A had positive earnings in each of the past 5 years.
In the past 5 years ALA-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.08%, ALA-PR-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-A has a better Return On Equity (9.04%) than 100.00% of its industry peers.
ALA-PR-A's Return On Invested Capital of 4.39% is fine compared to the rest of the industry. ALA-PR-A outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA-PR-A is in line with the industry average of 5.33%.
The 3 year average ROIC (3.44%) for ALA-PR-A 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
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.
In the last couple of years the Profit Margin of ALA-PR-A has declined.
ALA-PR-A has a Operating Margin of 9.88%. This is in the better half of the industry: ALA-PR-A outperforms 71.43% of its industry peers.
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.
ALA-PR-A's Gross Margin has declined in the last couple of years.
| 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-PR-A is destroying value.
Compared to 1 year ago, ALA-PR-A has more shares outstanding
ALA-PR-A has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALA-PR-A has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 0.93, ALA-PR-A is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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 better Debt to FCF ratio (1624.33) than 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.
Looking at the Debt to Equity ratio, with a value of 1.08, ALA-PR-A belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.47%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALA-PR-A may have some problems paying its short term obligations.
ALA-PR-A's Current ratio of 0.96 is amongst the best of the industry. ALA-PR-A outperforms 85.71% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA-PR-A may have some problems paying its short term obligations.
ALA-PR-A has a better Quick ratio (0.74) than 71.43% of its industry peers.
| 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.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
ALA-PR-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
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.
ALA-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
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
With a Price/Earnings ratio of 10.82, the valuation of ALA-PR-A can be described as very reasonable.
ALA-PR-A's Price/Earnings ratio is rather cheap when compared to the industry. ALA-PR-A is cheaper than 85.71% of the companies in the same industry.
ALA-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.57.
ALA-PR-A is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
ALA-PR-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-A is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALA-PR-A to the average of the S&P500 Index (23.09), we can say ALA-PR-A is valued rather cheaply.
| 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 ALA-PR-A does not grow enough to justify the current Price/Earnings ratio.
ALA-PR-A has a very decent profitability rating, which 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%.
Compared to an average industry Dividend Yield of 3.02, ALA-PR-A has a dividend in line with its industry peers.
ALA-PR-A's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| 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
ALA-PR-A pays out 49.55% of its income as dividend. 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%