ALTAGAS LTD - ALACN 3.06 PERP (ALA-PR-A.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-A - CA0213612090
24.96 CAD
-0.02 (-0.08%)
Overall ALA-PR-A gets a fundamental rating of 6 out of 10. We evaluated ALA-PR-A against 8 industry peers in the Gas Utilities industry. ALA-PR-A has an excellent profitability rating, but there are some minor concerns on its financial health. ALA-PR-A may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
ALA-PR-A had positive earnings in the past year.
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
ALA-PR-A's Return On Assets of 3.08% is amongst the best of the industry. ALA-PR-A outperforms 100.00% of its industry peers.
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 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-A is in line with the industry average of 4.90%.
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
Looking at the Profit Margin, with a value of 6.07%, ALA-PR-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ALA-PR-A has declined.
Looking at the Operating Margin, with a value of 9.88%, ALA-PR-A belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of ALA-PR-A has grown nicely.
With a decent Gross Margin value of 27.70%, ALA-PR-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA-PR-A is destroying value.
ALA-PR-A has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALA-PR-A has more shares outstanding
The debt/assets ratio for ALA-PR-A has been reduced compared to a year ago.
2.2 Solvency
ALA-PR-A has an Altman-Z score of 0.93. This is a bad value and indicates that ALA-PR-A is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, ALA-PR-A is in the better half of the industry, outperforming 62.50% 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 Debt to FCF ratio of 1624.33. This is in the better half of the industry: ALA-PR-A outperforms 62.50% of its industry peers.
ALA-PR-A has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external 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 87.50% 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
WACC5.49%
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.
ALA-PR-A has a Current ratio of 0.96. This is amongst the best in the industry. ALA-PR-A outperforms 100.00% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA-PR-A may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, ALA-PR-A is in the better half of the industry, outperforming 75.00% of the companies in the same 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.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
Looking at the last year, ALA-PR-A shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
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 decrease by -0.15% on average over the next years.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
EPS Next 5Y-0.15%
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
ALA-PR-A is valuated reasonably with a Price/Earnings ratio of 10.81.
Based on the Price/Earnings ratio, ALA-PR-A is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALA-PR-A to the average of the S&P500 Index (27.20), we can say ALA-PR-A is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.24, the valuation of ALA-PR-A can be described as very reasonable.
ALA-PR-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALA-PR-A is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ALA-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA-PR-A is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALA-PR-A indicates a somewhat cheap valuation: ALA-PR-A is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1245.79 | ||
| EV/EBITDA | 9.57 |
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.
The excellent profitability rating of ALA-PR-A may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)0.82
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
ALA-PR-A has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.16, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of ALA-PR-A has a limited annual growth rate of 0.74%.
ALA-PR-A has paid a dividend for at least 10 years, which is 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.
DP49.55%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
TSX:ALA-PR-A (9/17/2025, 7:00:00 PM)
24.96
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.37%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap7.47B
Analysts74.67
Price Target26.92 (7.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)2.31%
PT rev (3m)10.77%
EPS NQ rev (1m)5.96%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.58 | ||
| P/FCF | 1245.79 | ||
| P/OCF | 4.91 | ||
| P/B | 0.87 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)2.31
EY9.25%
EPS(NY)2.44
Fwd EY9.76%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.35%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.4
PEG (5Y)0.82
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 | 0.93 |
F-Score6
WACC5.49%
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 Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
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 Year42.74%
EBIT Next 3Y16.7%
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%