ALTAGAS LTD - ALACN 5.31 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
TSX:ALA-PR-B - Toronto Stock Exchange - CA0213613080 - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ALA-PR-B. ALA-PR-B was compared to 8 industry peers in the Gas Utilities industry. ALA-PR-B scores excellent on profitability, but there are concerns on its financial health. ALA-PR-B has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-B was profitable.
In the past year ALA-PR-B had a positive cash flow from operations.
In the past 5 years ALA-PR-B has always been profitable.
ALA-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALA-PR-B (2.15%) is better than 87.50% of its industry peers.
ALA-PR-B has a better Return On Equity (6.18%) than 87.50% of its industry peers.
ALA-PR-B has a Return On Invested Capital of 3.44%. This is in the better half of the industry: ALA-PR-B outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-B is in line with the industry average of 4.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.18% | ||
| ROIC | 3.44% |
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
With an excellent Profit Margin value of 4.40%, ALA-PR-B belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-B's Profit Margin has declined in the last couple of years.
The Operating Margin of ALA-PR-B (7.97%) is better than 62.50% of its industry peers.
ALA-PR-B's Operating Margin has improved in the last couple of years.
ALA-PR-B has a Gross Margin (25.65%) which is in line with its industry peers.
ALA-PR-B's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.97% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.65% |
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-B is destroying value.
Compared to 1 year ago, ALA-PR-B has more shares outstanding
The number of shares outstanding for ALA-PR-B has been increased compared to 5 years ago.
The debt/assets ratio for ALA-PR-B has been reduced compared to a year ago.
2.2 Solvency
ALA-PR-B has an Altman-Z score of 0.84. This is a bad value and indicates that ALA-PR-B is not financially healthy and even has some risk of bankruptcy.
ALA-PR-B has a better Altman-Z score (0.84) than 75.00% of its industry peers.
ALA-PR-B has a debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA-PR-B would need 68.55 years to pay back of all of its debts.
ALA-PR-B's Debt to FCF ratio of 68.55 is in line compared to the rest of the industry. ALA-PR-B outperforms 50.00% of its industry peers.
ALA-PR-B has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.02, ALA-PR-B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.49
WACC7.05%
2.3 Liquidity
ALA-PR-B has a Current Ratio of 0.95. This is a bad value and indicates that ALA-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA-PR-B has a better Current ratio (0.95) than 75.00% of its industry peers.
ALA-PR-B has a Quick Ratio of 0.95. This is a bad value and indicates that ALA-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA-PR-B's Quick ratio of 0.78 is fine compared to the rest of the industry. ALA-PR-B outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.34% 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-B shows a small growth in Revenue. In the last year, the Revenue has grown by 1.25%.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
EPS 1Y (TTM)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
3.2 Future
The Earnings Per Share is expected to decrease by -3.68% on average over the next years.
ALA-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
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
A Price/Earnings ratio of 10.47 indicates a reasonable valuation of ALA-PR-B.
Based on the Price/Earnings ratio, ALA-PR-B is valued a bit cheaper than 75.00% of the companies in the same industry.
ALA-PR-B is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.36 indicates a reasonable valuation of ALA-PR-B.
Based on the Price/Forward Earnings ratio, ALA-PR-B is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ALA-PR-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA-PR-B is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALA-PR-B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.36 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALA-PR-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)0.79
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, ALA-PR-B has a reasonable but not impressive dividend return.
ALA-PR-B's Dividend Yield is a higher than the industry average which is at 3.30.
ALA-PR-B's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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
67.26% of the earnings are spent on dividend by ALA-PR-B. This is not a sustainable payout ratio.
ALA-PR-B's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA-PR-B (7/2/2025, 7:00:00 PM)
22.82
-0.98 (-4.12%)
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 Cap6.82B
Analysts74.29
Price Target25.42 (11.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP67.26%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.83%
Min EPS beat(2)-0.52%
Max EPS beat(2)6.18%
EPS beat(4)3
Avg EPS beat(4)20.88%
Min EPS beat(4)-0.52%
Max EPS beat(4)54.51%
EPS beat(8)5
Avg EPS beat(8)9.34%
EPS beat(12)7
Avg EPS beat(12)4.91%
EPS beat(16)10
Avg EPS beat(16)253.91%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-6.22%
Max Revenue beat(2)8.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.36%
Revenue beat(8)2
Avg Revenue beat(8)-8.16%
Revenue beat(12)5
Avg Revenue beat(12)20.24%
Revenue beat(16)9
Avg Revenue beat(16)46.06%
PT rev (1m)13.57%
PT rev (3m)7.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.36 | ||
| P/S | 0.53 | ||
| P/FCF | 47.36 | ||
| P/OCF | 4.24 | ||
| P/B | 0.75 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)2.18
EY9.55%
EPS(NY)2.44
Fwd EY10.68%
FCF(TTM)0.48
FCFY2.11%
OCF(TTM)5.38
OCFY23.58%
SpS42.7
BVpS30.43
TBVpS11.06
PEG (NY)2.88
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.18% | ||
| ROCE | 4.38% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 4.64% | ||
| OM | 7.97% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.65% | ||
| FCFM | 1.13% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 300.62% | ||
| Cap/Sales | 11.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.92% | ||
| Profit Quality | 25.62% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.84 |
F-Score5
WACC7.05%
ROIC/WACC0.49
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)6.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%0%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y-3.68%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%8.59%
Revenue Next Year2.66%
Revenue Next 2Y5.32%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
EBIT growth 1Y-5.4%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.74%
EBIT Next 3Y16.7%
EBIT Next 5Y10.8%
FCF growth 1Y126.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.54%
OCF growth 3Y27.73%
OCF growth 5Y19.91%