ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
TSX:ALA-PR-G - Toronto Stock Exchange - CA0213618865 - Currency: CAD
ALA-PR-G gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 8 industry peers in the Gas Utilities industry. While ALA-PR-G is still in line with the averages on profitability rating, there are concerns on its financial health. ALA-PR-G has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-G was profitable.
ALA-PR-G had a positive operating cash flow in the past year.
Each year in the past 5 years ALA-PR-G has been profitable.
In the past 5 years ALA-PR-G always reported a positive cash flow from operatings.
1.2 Ratios
ALA-PR-G has a Return On Assets of 2.15%. This is in the better half of the industry: ALA-PR-G outperforms 75.00% of its industry peers.
ALA-PR-G has a Return On Equity of 6.18%. This is in the better half of the industry: ALA-PR-G outperforms 75.00% of its industry peers.
ALA-PR-G's Return On Invested Capital of 3.44% is in line compared to the rest of the industry. ALA-PR-G outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA-PR-G 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 a decent Profit Margin value of 4.40%, ALA-PR-G is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ALA-PR-G's Profit Margin has declined in the last couple of years.
ALA-PR-G has a Operating Margin (7.97%) which is in line with its industry peers.
ALA-PR-G's Operating Margin has improved in the last couple of years.
ALA-PR-G has a worse Gross Margin (25.65%) than 62.50% of its industry peers.
ALA-PR-G'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
ALA-PR-G 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-G has more shares outstanding
The number of shares outstanding for ALA-PR-G has been increased compared to 5 years ago.
ALA-PR-G has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that ALA-PR-G is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, ALA-PR-G belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ALA-PR-G has a debt to FCF ratio of 68.55. This is a negative value and a sign of low solvency as ALA-PR-G would need 68.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 68.55, ALA-PR-G is doing worse than 62.50% of the companies in the same industry.
ALA-PR-G has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
ALA-PR-G's Debt to Equity ratio of 1.02 is fine compared to the rest of the industry. ALA-PR-G outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 68.55 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.64
WACC5.38%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ALA-PR-G may have some problems paying its short term obligations.
With a decent Current ratio value of 0.95, ALA-PR-G is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-G has a Quick Ratio of 0.95. This is a bad value and indicates that ALA-PR-G is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA-PR-G has a Quick ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ALA-PR-G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.34%.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.25% in the past year.
Measured over the past years, ALA-PR-G shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
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
Based on estimates for the next years, ALA-PR-G will show a decrease in Earnings Per Share. The EPS will decrease by -3.68% on average per year.
ALA-PR-G 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.
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 11.47, the valuation of ALA-PR-G can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ALA-PR-G indicates a somewhat cheap valuation: ALA-PR-G is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALA-PR-G to the average of the S&P500 Index (27.30), we can say ALA-PR-G is valued rather cheaply.
ALA-PR-G is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
Based on the Price/Forward Earnings ratio, ALA-PR-G is valued a bit cheaper than 62.50% of the companies in the same industry.
ALA-PR-G is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA-PR-G is valued a bit more expensive than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALA-PR-G is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.94 | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALA-PR-G does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.15
PEG (5Y)0.87
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-G has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, ALA-PR-G pays a bit more dividend than its industry peers.
ALA-PR-G's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of ALA-PR-G has a limited annual growth rate of 0.74%.
ALA-PR-G has paid a dividend for at least 10 years, which is a reliable track record.
ALA-PR-G has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
67.26% of the earnings are spent on dividend by ALA-PR-G. This is not a sustainable payout ratio.
The Dividend Rate of ALA-PR-G has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP67.26%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (7/11/2025, 7:00:00 PM)
25
+0.15 (+0.6%)
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 Cap7.48B
Analysts74.67
Price Target26.96 (7.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP67.26%
Div Incr Years1
Div Non Decr Years4
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)-0.53%
PT rev (3m)10.21%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)4.31%
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 | 11.47 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.59 | ||
| P/FCF | 51.94 | ||
| P/OCF | 4.65 | ||
| P/B | 0.82 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)2.18
EY8.72%
EPS(NY)2.44
Fwd EY9.75%
FCF(TTM)0.48
FCFY1.93%
OCF(TTM)5.37
OCFY21.5%
SpS42.66
BVpS30.4
TBVpS11.05
PEG (NY)3.15
PEG (5Y)0.87
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 | 0.86 |
F-Score5
WACC5.38%
ROIC/WACC0.64
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%