ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
Canada - TSX:ALA-PR-G - CA0213618865
25.25 CAD
-0.05 (-0.2%)
We assign a fundamental rating of 4 out of 10 to ALA-PR-G. ALA-PR-G was compared to 8 industry peers in the Gas Utilities industry. ALA-PR-G has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ALA-PR-G had a positive cash flow from operations.
Each year in the past 5 years ALA-PR-G has been profitable.
Each year in the past 5 years ALA-PR-G had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, ALA-PR-G is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of ALA-PR-G (9.04%) is better than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.39%, ALA-PR-G is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-G is in line with the industry average of 4.90%.
The last Return On Invested Capital (4.39%) for ALA-PR-G 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
Looking at the Profit Margin, with a value of 6.07%, ALA-PR-G is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ALA-PR-G has declined.
With a decent Operating Margin value of 9.88%, ALA-PR-G is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ALA-PR-G's Operating Margin has improved in the last couple of years.
ALA-PR-G's Gross Margin of 27.70% is in line compared to the rest of the industry. ALA-PR-G outperforms 50.00% of its industry peers.
ALA-PR-G'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
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
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 0.93, we must say that ALA-PR-G is in the distress zone and has some risk of bankruptcy.
ALA-PR-G's Altman-Z score of 0.93 is amongst the best of the industry. ALA-PR-G outperforms 87.50% of its industry peers.
The Debt to FCF ratio of ALA-PR-G is 1624.33, which is on the high side as it means it would take ALA-PR-G, 1624.33 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1624.33, ALA-PR-G is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
ALA-PR-G has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ALA-PR-G's Debt to Equity ratio of 1.08 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 | 1.08 | ||
| 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-G may have some problems paying its short term obligations.
ALA-PR-G's Current ratio of 0.96 is fine compared to the rest of the industry. ALA-PR-G outperforms 75.00% of its industry peers.
ALA-PR-G has a Quick Ratio of 0.96. 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 (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ALA-PR-G shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
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 0.65% in the last 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)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
ALA-PR-G is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.15% yearly.
Based on estimates for the next years, ALA-PR-G will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
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.
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 10.93, the valuation of ALA-PR-G can be described as very reasonable.
ALA-PR-G's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-G is cheaper than 62.50% of the companies in the same industry.
ALA-PR-G is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
ALA-PR-G is valuated reasonably with a Price/Forward Earnings ratio of 10.36.
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.
When comparing the Price/Forward Earnings ratio of ALA-PR-G to the average of the S&P500 Index (22.88), we can say ALA-PR-G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA-PR-G indicates a slightly more expensive valuation: ALA-PR-G is more expensive than 62.50% of the companies listed in the same industry.
62.50% of the companies in the same industry are cheaper than ALA-PR-G, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1260.27 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ALA-PR-G may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)0.82
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, ALA-PR-G has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.16, ALA-PR-G pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALA-PR-G 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-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 49.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.55%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (9/18/2025, 7:00:00 PM)
25.25
-0.05 (-0.2%)
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 Cap7.56B
Analysts74.67
Price Target27.26 (7.96%)
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 Years1
Div Non Decr Years4
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)1.49%
PT rev (3m)0.58%
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 | 10.93 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.59 | ||
| P/FCF | 1260.27 | ||
| P/OCF | 4.97 | ||
| P/B | 0.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 9.62 |
EPS(TTM)2.31
EY9.15%
EPS(NY)2.44
Fwd EY9.65%
FCF(TTM)0.02
FCFY0.08%
OCF(TTM)5.08
OCFY20.11%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)2.43
PEG (5Y)0.82
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%