ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA-PR-G - CA0213618865
25.68 CAD
+0.13 (+0.51%)
Overall ALA-PR-G gets a fundamental rating of 6 out of 10. We evaluated ALA-PR-G against 6 industry peers in the Gas Utilities industry. ALA-PR-G scores excellent on profitability, but there are some minor concerns on its financial health. ALA-PR-G may be a bit undervalued, certainly considering the very reasonable score on growth ALA-PR-G also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ALA-PR-G had positive earnings in the past year.
- In the past year ALA-PR-G had a positive cash flow from operations.
- In the past 5 years ALA-PR-G has always been profitable.
- In the past 5 years ALA-PR-G always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 2.87%, ALA-PR-G belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- With an excellent Return On Equity value of 8.75%, ALA-PR-G belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of ALA-PR-G (4.37%) is better than 66.67% of its industry peers.
- ALA-PR-G 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 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
- With an excellent Profit Margin value of 5.88%, ALA-PR-G belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- ALA-PR-G's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 10.21%, ALA-PR-G is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ALA-PR-G's Operating Margin has improved in the last couple of years.
- 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
- ALA-PR-G has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- The debt/assets ratio for ALA-PR-G has been reduced compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 0.89, ALA-PR-G belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- ALA-PR-G has a debt to FCF ratio of 2558.25. This is a negative value and a sign of low solvency as ALA-PR-G would need 2558.25 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2558.25, ALA-PR-G belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- ALA-PR-G has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- ALA-PR-G has a Debt to Equity ratio of 1.15. This is in the better half of the industry: ALA-PR-G outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.79
WACC5.53%
2.3 Liquidity
- ALA-PR-G has a Current 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 has a better Current ratio (0.88) than 83.33% of its industry peers.
- A Quick Ratio of 0.63 indicates that ALA-PR-G may have some problems paying its short term obligations.
- ALA-PR-G has a Quick ratio of 0.63. This is in the better half 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.
- ALA-PR-G shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
- 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
- The Earnings Per Share is expected to grow by 6.90% on average over the next years.
- 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 5Y6.9%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
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.
- 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
- Based on the Price/Earnings ratio of 11.62, the valuation of ALA-PR-G can be described as reasonable.
- Compared to the rest of the industry, the Price/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/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.92 indicates a reasonable valuation of ALA-PR-G.
- Based on the Price/Forward Earnings ratio, ALA-PR-G is valued cheaper than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ALA-PR-G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA-PR-G is on the same level as its industry peers.
- 83.33% of the companies in the same industry are more expensive than ALA-PR-G, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1997.26 | ||
| EV/EBITDA | 10.06 |
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.
- ALA-PR-G has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.56
PEG (5Y)0.88
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.86%, ALA-PR-G is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.03, ALA-PR-G pays a better dividend. On top of this ALA-PR-G pays more dividend than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ALA-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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
- 52.48% of the earnings are spent on dividend by ALA-PR-G. This is a bit on the high side, but may be sustainable.
- ALA-PR-G's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.48%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
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 6 / 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 8 / 10 and the dividend payout ratio is 52.48%.