ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-B - CA0213613080
24.98 CAD
+0.01 (+0.04%)
We assign a fundamental rating of 5 out of 10 to ALA-PR-B. ALA-PR-B was compared to 6 industry peers in the Gas Utilities industry. While ALA-PR-B has a great profitability rating, there are some minor concerns on its financial health. ALA-PR-B has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALA-PR-B had positive earnings in the past year.
In the past year ALA-PR-B had a positive cash flow from operations.
ALA-PR-B had positive earnings in each of the past 5 years.
Each year in the past 5 years ALA-PR-B had a positive operating cash flow.
1.2 Ratios
ALA-PR-B's Return On Assets of 3.08% is amongst the best of the industry. ALA-PR-B outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 9.04%, ALA-PR-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.39%, ALA-PR-B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-B is significantly below the industry average of 10.38%.
The last Return On Invested Capital (4.39%) for ALA-PR-B 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-PR-B (6.07%) is better than 100.00% of its industry peers.
ALA-PR-B's Profit Margin has declined in the last couple of years.
ALA-PR-B's Operating Margin of 9.88% is fine compared to the rest of the industry. ALA-PR-B outperforms 75.00% of its industry peers.
ALA-PR-B's Operating Margin has improved in the last couple of years.
The Gross Margin of ALA-PR-B (27.70%) is better than 62.50% of its industry peers.
ALA-PR-B'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
ALA-PR-B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALA-PR-B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALA-PR-B has been increased compared to 5 years ago.
Compared to 1 year ago, ALA-PR-B has an improved debt to assets ratio.
2.2 Solvency
ALA-PR-B has an Altman-Z score of 0.93. This is a bad value and indicates that ALA-PR-B 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-B is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-B has a debt to FCF ratio of 1624.33. This is a negative value and a sign of low solvency as ALA-PR-B would need 1624.33 years to pay back of all of its debts.
The Debt to FCF ratio of ALA-PR-B (1624.33) is better than 75.00% of its industry peers.
ALA-PR-B has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ALA-PR-B has a better Debt to Equity ratio (1.08) than 87.50% 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
A Current Ratio of 0.96 indicates that ALA-PR-B may have some problems paying its short term obligations.
ALA-PR-B has a Current ratio of 0.96. This is amongst the best in the industry. ALA-PR-B outperforms 87.50% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA-PR-B may have some problems paying its short term obligations.
The Quick ratio of ALA-PR-B (0.74) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ALA-PR-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
ALA-PR-B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
Measured over the past years, ALA-PR-B 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
Based on estimates for the next years, ALA-PR-B will show a small growth in Earnings Per Share. The EPS will grow by 0.17% on average per year.
Based on estimates for the next years, ALA-PR-B will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
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
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
The Price/Earnings ratio is 10.81, which indicates a very decent valuation of ALA-PR-B.
87.50% of the companies in the same industry are more expensive than ALA-PR-B, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. ALA-PR-B is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.26, the valuation of ALA-PR-B can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALA-PR-B is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ALA-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA-PR-B is valued a bit cheaper than 62.50% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than ALA-PR-B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1246.79 | ||
| 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-B 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-B has a Yearly Dividend Yield of 2.92%. Purely for dividend investing, there may be better candidates out there.
ALA-PR-B's Dividend Yield is comparable with the industry average which is at 3.00.
ALA-PR-B's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of ALA-PR-B has a limited annual growth rate of 0.74%.
ALA-PR-B has been paying a dividend for at least 10 years, so it has a reliable track record.
ALA-PR-B has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
49.55% of the earnings are spent on dividend by ALA-PR-B. This is a bit on the high side, but may be sustainable.
ALA-PR-B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA-PR-B (9/26/2025, 7:00:00 PM)
24.98
+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 Cap7.48B
Revenue(TTM)12.83B
Net Income(TTM)779.00M
Analysts74.67
Price Target26.07 (4.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years3
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)-1.3%
PT rev (3m)2.56%
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 | 10.81 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.58 | ||
| P/FCF | 1246.79 | ||
| P/OCF | 4.92 | ||
| P/B | 0.87 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)2.31
EY9.25%
EPS(NY)2.44
Fwd EY9.75%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.33%
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 5.08 PERP / ALA-PR-B.CA FAQ
Can you provide the ChartMill fundamental rating for ALTAGAS LTD - ALACN 5.08 PERP?
ChartMill assigns a fundamental rating of 6 / 10 to ALA-PR-B.CA.
What is the valuation status for ALA-PR-B stock?
ChartMill assigns a valuation rating of 7 / 10 to ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA). This can be considered as Undervalued.
Can you provide the profitability details for ALTAGAS LTD - ALACN 5.08 PERP?
ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) has a profitability rating of 8 / 10.
What is the valuation of ALTAGAS LTD - ALACN 5.08 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) is 10.81 and the Price/Book (PB) ratio is 0.87.
What is the expected EPS growth for ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) stock?
The Earnings per Share (EPS) of ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) is expected to grow by 4.45% in the next year.