ALTAGAS LTD - ALACN 5.31 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
TSX:ALA-PR-B - Toronto Stock Exchange - CA0213613080 - Currency: CAD
ALA-PR-B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Gas Utilities industry. While ALA-PR-B belongs to the best of the industry regarding profitability, 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
ALA-PR-B had positive earnings in the past year.
ALA-PR-B had a positive operating cash flow in the past year.
In the past 5 years ALA-PR-B has always been profitable.
In the past 5 years ALA-PR-B always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALA-PR-B (2.22%) is better than 87.50% of its industry peers.
With an excellent Return On Equity value of 6.60%, ALA-PR-B belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-B has a Return On Invested Capital of 3.50%. This is comparable to the rest of the industry: ALA-PR-B outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA-PR-B is below the industry average of 7.18%.
The last Return On Invested Capital (3.50%) for ALA-PR-B is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROIC | 3.5% |
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-B has a Profit Margin of 4.64%. This is amongst the best in the industry. ALA-PR-B outperforms 87.50% of its industry peers.
ALA-PR-B's Profit Margin has declined in the last couple of years.
ALA-PR-B has a better Operating Margin (8.19%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of ALA-PR-B has grown nicely.
With a decent Gross Margin value of 26.08%, ALA-PR-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-B's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% |
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.
The number of shares outstanding for ALA-PR-B has been increased compared to 1 year ago.
Compared to 5 years ago, ALA-PR-B has more shares outstanding
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 0.76. This is a bad value and indicates that ALA-PR-B is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.76, ALA-PR-B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ALA-PR-B has a debt to FCF ratio of 67.32. This is a negative value and a sign of low solvency as ALA-PR-B would need 67.32 years to pay back of all of its debts.
The Debt to FCF ratio of ALA-PR-B (67.32) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
ALA-PR-B has a Debt to Equity ratio of 1.07. This is in the better half of the industry: ALA-PR-B outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.69
WACC5.11%
2.3 Liquidity
A Current Ratio of 0.81 indicates that ALA-PR-B may have some problems paying its short term obligations.
ALA-PR-B's Current ratio of 0.81 is fine compared to the rest of the industry. ALA-PR-B outperforms 62.50% of its industry peers.
ALA-PR-B has a Quick Ratio of 0.81. 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.
Looking at the Quick ratio, with a value of 0.61, ALA-PR-B is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 |
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 15.34%, which is quite good.
ALA-PR-B 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-B shows a decrease in Revenue. In the last year, the revenue decreased by -4.22%.
ALA-PR-B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.77% yearly.
EPS 1Y (TTM)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
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 2.55% 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 6.20% on average per year.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue Next Year6.52%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
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.
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 9.60, the valuation of ALA-PR-B can be described as very reasonable.
Based on the Price/Earnings ratio, ALA-PR-B is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.33. ALA-PR-B is valued rather cheaply when compared to this.
ALA-PR-B is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
87.50% of the companies in the same industry are more expensive than ALA-PR-B, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, ALA-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALA-PR-B.
Based on the Price/Free Cash Flow ratio, ALA-PR-B is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.98 | ||
| EV/EBITDA | 10.66 |
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)2.64
PEG (5Y)0.72
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, ALA-PR-B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.40, ALA-PR-B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, ALA-PR-B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of ALA-PR-B has a limited annual growth rate of 0.74%.
ALA-PR-B has paid a dividend for at least 10 years, which is 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
64.19% of the earnings are spent on dividend by ALA-PR-B. This is not a sustainable payout ratio.
The dividend of ALA-PR-B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.19%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
TSX:ALA-PR-B (4/21/2025, 7:00:00 PM)
20.93
+0.07 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners0.62%
Ins Owner ChangeN/A
Market Cap6.26B
Analysts75.71
Price Target22.38 (6.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP64.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.34%
Min EPS beat(2)6.18%
Max EPS beat(2)54.51%
EPS beat(4)4
Avg EPS beat(4)23.05%
Min EPS beat(4)6.18%
Max EPS beat(4)54.51%
EPS beat(8)6
Avg EPS beat(8)10.76%
EPS beat(12)8
Avg EPS beat(12)5.7%
EPS beat(16)11
Avg EPS beat(16)256.22%
Revenue beat(2)0
Avg Revenue beat(2)-10.27%
Min Revenue beat(2)-14.32%
Max Revenue beat(2)-6.22%
Revenue beat(4)1
Avg Revenue beat(4)-6.12%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.36%
Revenue beat(8)1
Avg Revenue beat(8)-9.78%
Revenue beat(12)5
Avg Revenue beat(12)22.3%
Revenue beat(16)9
Avg Revenue beat(16)47.89%
PT rev (1m)-12.78%
PT rev (3m)-14.5%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.5 | ||
| P/FCF | 41.98 | ||
| P/OCF | 4.07 | ||
| P/B | 0.71 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)2.18
EY10.42%
EPS(NY)2.26
Fwd EY10.79%
FCF(TTM)0.5
FCFY2.38%
OCF(TTM)5.15
OCFY24.59%
SpS41.65
BVpS29.28
TBVpS9.88
PEG (NY)2.64
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROCE | 4.51% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.72% | ||
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% | ||
| FCFM | 1.2% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 292.42% | ||
| Cap/Sales | 11.16% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 102.88% | ||
| Profit Quality | 25.78% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.76 |
F-Score5
WACC5.11%
ROIC/WACC0.69
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)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
Revenue Next Year6.52%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year41.74%
EBIT Next 3Y16.76%
EBIT Next 5Y12.5%
FCF growth 1Y-16.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.2%
OCF growth 3Y27.73%
OCF growth 5Y19.91%