ALTAGAS LTD - ALACN 6.017 PERP (ALA-PR-G.CA) Stock Fundamental Analysis
TSX:ALA-PR-G - Toronto Stock Exchange - CA0213618865 - Currency: CAD
Taking everything into account, ALA-PR-G scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ALA-PR-G has always been profitable.
ALA-PR-G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALA-PR-G has a better Return On Assets (2.22%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 6.60%, ALA-PR-G is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.50%, ALA-PR-G is doing worse than 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA-PR-G is below the industry average of 7.18%.
The 3 year average ROIC (3.44%) for ALA-PR-G is below the current ROIC(3.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROIC | 3.5% |
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 4.64%, ALA-PR-G is doing good in 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.
Looking at the Operating Margin, with a value of 8.19%, ALA-PR-G is in line with its industry, outperforming 50.00% of the companies in the same industry.
ALA-PR-G's Operating Margin has improved in the last couple of years.
ALA-PR-G has a Gross Margin (26.08%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALA-PR-G has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% |
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.
ALA-PR-G has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALA-PR-G has been reduced compared to a year ago.
2.2 Solvency
ALA-PR-G has an Altman-Z score of 0.78. This is a bad value and indicates that ALA-PR-G is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, ALA-PR-G belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of ALA-PR-G is 67.32, which is on the high side as it means it would take ALA-PR-G, 67.32 years of fcf income to pay off all of its debts.
ALA-PR-G's Debt to FCF ratio of 67.32 is in line compared to the rest of the industry. ALA-PR-G outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ALA-PR-G has dependencies on debt financing.
ALA-PR-G has a Debt to Equity ratio of 1.07. This is in the better half of the industry: ALA-PR-G outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.67
WACC5.2%
2.3 Liquidity
ALA-PR-G has a Current Ratio of 0.81. 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 Current ratio of 0.81. This is comparable to the rest of the industry: ALA-PR-G outperforms 50.00% of its industry peers.
ALA-PR-G has a Quick Ratio of 0.81. 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 of 0.61. This is comparable to the rest of the industry: ALA-PR-G outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 |
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 15.34%, which is quite good.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
Looking at the last year, ALA-PR-G shows a decrease in Revenue. The Revenue has decreased by -4.22% 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)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
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 2.55% 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 6.20% on average per year.
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue Next Year6.52%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 10.46, which indicates a very decent valuation of ALA-PR-G.
ALA-PR-G's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA-PR-G is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.63, ALA-PR-G is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.09, the valuation of ALA-PR-G can be described as very reasonable.
75.00% of the companies in the same industry are more expensive than ALA-PR-G, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, ALA-PR-G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than ALA-PR-G, based on the Enterprise Value to EBITDA ratio.
ALA-PR-G's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.73 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.87
PEG (5Y)0.79
EPS Next 2Y5.73%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
ALA-PR-G has a Yearly Dividend Yield of 3.15%.
ALA-PR-G's Dividend Yield is a higher than the industry average which is at 3.40.
Compared to an average S&P500 Dividend Yield of 2.51, ALA-PR-G pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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
64.19% of the earnings are spent on dividend by ALA-PR-G. This is not a sustainable payout ratio.
The dividend of ALA-PR-G is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.19%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
ALTAGAS LTD - ALACN 6.017 PERP
TSX:ALA-PR-G (4/17/2025, 7:00:00 PM)
22.8
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners0.62%
Ins Owner ChangeN/A
Market Cap6.81B
Analysts75.71
Price Target24.46 (7.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP64.19%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.34%
Min EPS beat(2)6.18%
Max EPS beat(2)54.51%
EPS beat(4)4
Avg EPS beat(4)23.05%
Min EPS beat(4)6.18%
Max EPS beat(4)54.51%
EPS beat(8)6
Avg EPS beat(8)10.76%
EPS beat(12)8
Avg EPS beat(12)5.7%
EPS beat(16)11
Avg EPS beat(16)256.22%
Revenue beat(2)0
Avg Revenue beat(2)-10.27%
Min Revenue beat(2)-14.32%
Max Revenue beat(2)-6.22%
Revenue beat(4)1
Avg Revenue beat(4)-6.12%
Min Revenue beat(4)-14.32%
Max Revenue beat(4)8.36%
Revenue beat(8)1
Avg Revenue beat(8)-9.78%
Revenue beat(12)5
Avg Revenue beat(12)22.3%
Revenue beat(16)9
Avg Revenue beat(16)47.89%
PT rev (1m)-9.82%
PT rev (3m)-11.58%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.09 | ||
| P/S | 0.55 | ||
| P/FCF | 45.73 | ||
| P/OCF | 4.43 | ||
| P/B | 0.78 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)2.18
EY9.56%
EPS(NY)2.26
Fwd EY9.91%
FCF(TTM)0.5
FCFY2.19%
OCF(TTM)5.15
OCFY22.57%
SpS41.65
BVpS29.28
TBVpS9.88
PEG (NY)2.87
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.6% | ||
| ROCE | 4.51% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.72% | ||
| OM | 8.19% | ||
| PM (TTM) | 4.64% | ||
| GM | 26.08% | ||
| FCFM | 1.2% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 67.32 | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 292.42% | ||
| Cap/Sales | 11.16% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 102.88% | ||
| Profit Quality | 25.78% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.78 |
F-Score5
WACC5.2%
ROIC/WACC0.67
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)15.34%
EPS 3Y7.19%
EPS 5Y13.25%
EPS Q2Q%1.33%
EPS Next Y3.64%
EPS Next 2Y5.73%
EPS Next 3Y8.15%
EPS Next 5Y2.55%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-0.88%
Revenue Next Year6.52%
Revenue Next 2Y6.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year41.74%
EBIT Next 3Y16.76%
EBIT Next 5Y12.5%
FCF growth 1Y-16.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.2%
OCF growth 3Y27.73%
OCF growth 5Y19.91%