ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA-PR-B - CA0213613080
24.98 CAD
+0.01 (+0.04%)
ALA-PR-B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Gas Utilities industry. ALA-PR-B scores excellent on profitability, but 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.
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.
ALA-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, ALA-PR-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALA-PR-B has a better Return On Equity (9.04%) than 100.00% of its industry peers.
The Return On Invested Capital of ALA-PR-B (4.39%) is better than 75.00% of its industry peers.
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 5.31%.
The 3 year average ROIC (3.44%) for ALA-PR-B 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
The Profit Margin of ALA-PR-B (6.07%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ALA-PR-B has declined.
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.
ALA-PR-B has a Gross Margin of 27.70%. This is in the better half of the industry: ALA-PR-B outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA-PR-B is destroying value.
Compared to 1 year ago, ALA-PR-B has more shares outstanding
Compared to 5 years ago, ALA-PR-B has more shares outstanding
ALA-PR-B has a better debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 0.93, ALA-PR-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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 better than 75.00% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA-PR-B has dependencies on debt financing.
The Debt to Equity ratio of ALA-PR-B (1.08) is better 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
ALA-PR-B has a Current Ratio of 0.96. 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 (0.96) than 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
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.
The Revenue has been growing slightly by 0.65% in the past year.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
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 grow by 0.17% 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 Y4.45%
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
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.
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
With a Price/Earnings ratio of 10.81, 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 27.19. 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.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA-PR-B indicates a rather cheap valuation: ALA-PR-B is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. ALA-PR-B is valued rather cheaply when compared to this.
| 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.
ALA-PR-B has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 2.92%, ALA-PR-B has a reasonable but not impressive dividend return.
ALA-PR-B's Dividend Yield is comparable with the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 1.92, ALA-PR-B pays a better dividend.
| 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
ALA-PR-B pays out 49.55% of its income as dividend. 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-DateN/A
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.
Can you provide the valuation status for ALTAGAS LTD - ALACN 5.08 PERP?
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.
How profitable is ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) stock?
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.
Can you provide the dividend sustainability for ALA-PR-B stock?
The dividend rating of ALTAGAS LTD - ALACN 5.08 PERP (ALA-PR-B.CA) is 5 / 10 and the dividend payout ratio is 49.55%.