ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA-PR-G - CA0213618865
25.62 CAD
+0.09 (+0.35%)
Taking everything into account, ALA-PR-G scores 5 out of 10 in our fundamental rating. ALA-PR-G was compared to 6 industry peers in the Gas Utilities industry. ALA-PR-G has an excellent profitability rating, but there are some minor concerns on its financial health. ALA-PR-G scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ALA-PR-G was profitable.
In the past year ALA-PR-G had a positive cash flow from operations.
ALA-PR-G had positive earnings in each of the past 5 years.
In the past 5 years ALA-PR-G always reported a positive cash flow from operatings.
1.2 Ratios
ALA-PR-G has a better Return On Assets (2.87%) than 100.00% of its industry peers.
ALA-PR-G has a Return On Equity of 8.75%. This is amongst the best in the industry. ALA-PR-G outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.37%, ALA-PR-G is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALA-PR-G is in line with the industry average of 5.31%.
The last Return On Invested Capital (4.37%) for ALA-PR-G is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 8.75% | ||
| ROIC | 4.37% |
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-G has a better Profit Margin (5.88%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ALA-PR-G has declined.
ALA-PR-G has a Operating Margin of 10.21%. This is in the better half of the industry: ALA-PR-G outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of ALA-PR-G has grown nicely.
Looking at the Gross Margin, with a value of 28.43%, ALA-PR-G is in line with its industry, outperforming 50.00% of the companies in the same industry.
ALA-PR-G's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.21% | ||
| PM (TTM) | 5.88% | ||
| GM | 28.43% |
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-G is destroying value.
The number of shares outstanding for ALA-PR-G has been increased compared to 1 year ago.
Compared to 5 years ago, ALA-PR-G has more shares outstanding
Compared to 1 year ago, ALA-PR-G has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that ALA-PR-G is in the distress zone and has some risk of bankruptcy.
ALA-PR-G has a better Altman-Z score (0.89) than 83.33% of its industry peers.
The Debt to FCF ratio of ALA-PR-G is 2558.25, which is on the high side as it means it would take ALA-PR-G, 2558.25 years of fcf income to pay off all of its debts.
ALA-PR-G has a Debt to FCF ratio of 2558.25. This is amongst the best in the industry. ALA-PR-G outperforms 83.33% of its industry peers.
ALA-PR-G has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALA-PR-G (1.15) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.81
WACC5.43%
2.3 Liquidity
A Current Ratio of 0.88 indicates that ALA-PR-G may have some problems paying its short term obligations.
ALA-PR-G has a better Current ratio (0.88) than 83.33% of its industry peers.
ALA-PR-G has a Quick Ratio of 0.88. 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's Quick ratio of 0.63 is fine compared to the rest of the industry. ALA-PR-G outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.84% over the past year.
ALA-PR-G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
Looking at the last year, ALA-PR-G shows a small growth in Revenue. The Revenue has grown by 1.55% in the last year.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
EPS 1Y (TTM)1.84%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
3.2 Future
Based on estimates for the next years, ALA-PR-G will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.
Based on estimates for the next years, ALA-PR-G will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
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 11.59, which indicates a very decent valuation of ALA-PR-G.
ALA-PR-G's Price/Earnings ratio is rather cheap when compared to the industry. ALA-PR-G is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALA-PR-G to the average of the S&P500 Index (26.51), we can say ALA-PR-G is valued rather cheaply.
ALA-PR-G is valuated reasonably with a Price/Forward Earnings ratio of 10.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA-PR-G indicates a rather cheap valuation: ALA-PR-G is cheaper than 83.33% of the companies listed in the same industry.
ALA-PR-G is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
ALA-PR-G's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ALA-PR-G is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1992.6 | ||
| EV/EBITDA | 10.07 |
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-G has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.55
PEG (5Y)0.87
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
ALA-PR-G has a Yearly Dividend Yield of 3.17%.
ALA-PR-G's Dividend Yield is a higher than the industry average which is at 2.13.
Compared to an average S&P500 Dividend Yield of 2.00, ALA-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
ALA-PR-G pays out 52.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ALA-PR-G is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.48%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (12/31/2025, 7:00:00 PM)
25.62
+0.09 (+0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.41%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap7.97B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target29.53 (15.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.12%
Min EPS beat(2)-27.05%
Max EPS beat(2)14.8%
EPS beat(4)2
Avg EPS beat(4)-1.65%
Min EPS beat(4)-27.05%
Max EPS beat(4)14.8%
EPS beat(8)5
Avg EPS beat(8)9.48%
EPS beat(12)7
Avg EPS beat(12)5.48%
EPS beat(16)9
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-6.73%
Min Revenue beat(2)-9.48%
Max Revenue beat(2)-3.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)8.03%
Revenue beat(8)2
Avg Revenue beat(8)-6.34%
Revenue beat(12)3
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)23.78%
PT rev (1m)8.86%
PT rev (3m)8.31%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.9 | ||
| P/S | 0.63 | ||
| P/FCF | 1992.6 | ||
| P/OCF | 5.2 | ||
| P/B | 0.94 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)2.21
EY8.63%
EPS(NY)2.35
Fwd EY9.18%
FCF(TTM)0.01
FCFY0.05%
OCF(TTM)4.93
OCFY19.25%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)3.55
PEG (5Y)0.87
Graham Number36.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 8.75% | ||
| ROCE | 5.57% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 5.81% | ||
| OM | 10.21% | ||
| PM (TTM) | 5.88% | ||
| GM | 28.43% | ||
| FCFM | 0.03% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 304.78% | ||
| Cap/Sales | 12.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.46% | ||
| Profit Quality | 0.54% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.89 |
F-Score7
WACC5.43%
ROIC/WACC0.81
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)1.84%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%-71.43%
EPS Next Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year43.2%
EBIT Next 3Y18.82%
EBIT Next 5Y12.37%
FCF growth 1Y101.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y125.92%
OCF growth 3Y27.73%
OCF growth 5Y19.91%
ALTAGAS LTD - ALACN 6.017 PERP / ALA-PR-G.CA FAQ
Can you provide the ChartMill fundamental rating for ALTAGAS LTD - ALACN 6.017 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to ALA-PR-G.CA.
What is the valuation status for ALA-PR-G stock?
ChartMill assigns a valuation rating of 7 / 10 to ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA). This can be considered as Undervalued.
How profitable is ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) stock?
ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) has a profitability rating of 7 / 10.
What is the financial health of ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) stock?
The financial health rating of ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) is 4 / 10.
Can you provide the dividend sustainability for ALA-PR-G stock?
The dividend rating of ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) is 6 / 10 and the dividend payout ratio is 52.48%.