ALTAGAS LTD - ALACN 5.13 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-B - CA0213613080
25.29 CAD
-0.01 (-0.04%)
Taking everything into account, ALA-PR-B scores 5 out of 10 in our fundamental rating. 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
ALA-PR-B had positive earnings in the past year.
ALA-PR-B had a positive operating cash flow in the past year.
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 has a Return On Assets of 3.08%. This is amongst the best in the industry. ALA-PR-B outperforms 87.50% of its industry peers.
ALA-PR-B has a Return On Equity of 9.04%. This is amongst the best in the industry. ALA-PR-B outperforms 87.50% of its industry peers.
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 62.50% of the companies in the same industry.
ALA-PR-B had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 4.90%.
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
ALA-PR-B's Profit Margin of 6.07% is amongst the best of the industry. ALA-PR-B outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of ALA-PR-B has declined.
With a decent Operating Margin value of 9.88%, ALA-PR-B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ALA-PR-B has grown nicely.
With a decent Gross Margin value of 27.70%, ALA-PR-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ALA-PR-B 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
ALA-PR-B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALA-PR-B has more shares outstanding
ALA-PR-B has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALA-PR-B 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-B is in the distress zone and has some risk of bankruptcy.
ALA-PR-B has a better Altman-Z score (0.93) than 75.00% of its industry peers.
The Debt to FCF ratio of ALA-PR-B is 1624.33, which is on the high side as it means it would take ALA-PR-B, 1624.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALA-PR-B (1624.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
ALA-PR-B has a better Debt to Equity ratio (1.08) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC5.51%
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.
With a decent Quick ratio value of 0.74, ALA-PR-B is doing good in the industry, outperforming 62.50% 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.
Measured over the past years, ALA-PR-B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.25% on average per year.
Looking at the last year, ALA-PR-B shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
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)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.
ALA-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
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
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 10.95, which indicates a very decent 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.
When comparing the Price/Earnings ratio of ALA-PR-B to the average of the S&P500 Index (27.27), we can say ALA-PR-B is valued rather cheaply.
A Price/Forward Earnings ratio of 10.38 indicates a reasonable valuation of ALA-PR-B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA-PR-B indicates a somewhat cheap valuation: ALA-PR-B is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. ALA-PR-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 10.38 |
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 | 1262.27 | ||
| EV/EBITDA | 9.63 |
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)2.43
PEG (5Y)0.83
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, 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 3.16.
Compared to an average S&P500 Dividend Yield of 2.38, ALA-PR-B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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.
DP49.55%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
TSX:ALA-PR-B (9/15/2025, 7:00:00 PM)
25.29
-0.01 (-0.04%)
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 Cap7.57B
Analysts74.67
Price Target27.1 (7.16%)
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 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)8.71%
PT rev (3m)9.25%
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 | 10.95 | ||
| Fwd PE | 10.38 | ||
| P/S | 0.59 | ||
| P/FCF | 1262.27 | ||
| P/OCF | 4.98 | ||
| P/B | 0.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)2.31
EY9.13%
EPS(NY)2.44
Fwd EY9.63%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.08%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.43
PEG (5Y)0.83
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
WACC5.51%
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%