ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
42.53 CAD
+1.34 (+3.25%)
ALA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 industry peers in the Gas Utilities industry. ALA has an excellent profitability rating, but there are concerns on its financial health. ALA is valied quite expensively at the moment, while it does show a decent growth rate. Finally ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
ALA had a positive operating cash flow in the past year.
ALA had positive earnings in each of the past 5 years.
Each year in the past 5 years ALA had a positive operating cash flow.
1.2 Ratios
ALA's Return On Assets of 2.87% is amongst the best of the industry. ALA outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 8.75%, ALA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
ALA's Return On Invested Capital of 4.37% is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
ALA had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 5.33%.
The 3 year average ROIC (3.44%) for ALA is below the current ROIC(4.37%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.88%, ALA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of ALA has declined.
The Operating Margin of ALA (10.21%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of ALA has grown nicely.
ALA has a Gross Margin of 28.43%. This is in the lower half of the industry: ALA underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of ALA has declined.
| 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 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 has more shares outstanding
Compared to 5 years ago, ALA has more shares outstanding
ALA has a better debt/assets ratio than last year.
2.2 Solvency
ALA has an Altman-Z score of 1.06. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.06, ALA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of ALA is 2558.25, which is on the high side as it means it would take ALA, 2558.25 years of fcf income to pay off all of its debts.
ALA has a Debt to FCF ratio (2558.25) which is in line with its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that ALA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.15, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.73
WACC5.96%
2.3 Liquidity
ALA has a Current Ratio of 0.88. This is a bad value and indicates that ALA is not financially healthy enough and could expect problems in meeting its short term obligations.
ALA's Current ratio of 0.88 is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
A Quick Ratio of 0.63 indicates that ALA may have some problems paying its short term obligations.
ALA has a Quick ratio (0.63) which is comparable to the rest of the industry.
| 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.
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 1.55% in the past year.
Measured over the past years, ALA shows a quite strong growth in Revenue. The Revenue has been growing by 17.77% on average per year.
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 4.25% on average over the next years.
ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y3.67%
EPS Next 2Y3.74%
EPS Next 3Y6.93%
EPS Next 5Y4.25%
Revenue Next Year2.4%
Revenue Next 2Y3.57%
Revenue Next 3Y4.34%
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
A Price/Earnings ratio of 19.24 indicates a rather expensive valuation of ALA.
The rest of the industry has a similar Price/Earnings ratio as ALA.
When comparing the Price/Earnings ratio of ALA to the average of the S&P500 Index (26.06), we can say ALA is valued slightly cheaper.
ALA is valuated rather expensively with a Price/Forward Earnings ratio of 18.13.
ALA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALA is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (32.73), we can say ALA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 18.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALA is valued a bit more expensive than 66.67% of the companies in the same industry.
ALA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3184.12 | ||
| EV/EBITDA | 12.73 |
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 may justify a higher PE ratio.
PEG (NY)5.24
PEG (5Y)1.45
EPS Next 2Y3.74%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.04. ALA pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ALA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of ALA has a limited annual growth rate of 0.74%.
ALA has been paying a dividend for at least 10 years, so it has a reliable track record.
As ALA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.74%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ALA 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 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.48%
EPS Next 2Y3.74%
EPS Next 3Y6.93%
TSX:ALA (11/7/2025, 7:00:00 PM)
42.53
+1.34 (+3.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.36%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap12.74B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts74.67
Price Target45.08 (6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)1.61%
PT rev (3m)6%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-8.16%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 18.13 | ||
| P/S | 1.01 | ||
| P/FCF | 3184.12 | ||
| P/OCF | 8.3 | ||
| P/B | 1.5 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)2.21
EY5.2%
EPS(NY)2.35
Fwd EY5.52%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)5.12
OCFY12.04%
SpS42.31
BVpS28.44
TBVpS9.64
PEG (NY)5.24
PEG (5Y)1.45
Graham Number37.6
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 | 1.06 |
F-Score7
WACC5.96%
ROIC/WACC0.73
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 Y3.67%
EPS Next 2Y3.74%
EPS Next 3Y6.93%
EPS Next 5Y4.25%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year2.4%
Revenue Next 2Y3.57%
Revenue Next 3Y4.34%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.66%
EBIT Next 3Y16.67%
EBIT Next 5Y11.62%
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 / ALA.CA FAQ
What is the fundamental rating for ALA stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALA.CA.
What is the valuation status of ALTAGAS LTD (ALA.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ALTAGAS LTD (ALA.CA). This can be considered as Overvalued.
Can you provide the profitability details for ALTAGAS LTD?
ALTAGAS LTD (ALA.CA) has a profitability rating of 7 / 10.
Can you provide the financial health for ALA stock?
The financial health rating of ALTAGAS LTD (ALA.CA) is 2 / 10.
Can you provide the dividend sustainability for ALA stock?
The dividend rating of ALTAGAS LTD (ALA.CA) is 6 / 10 and the dividend payout ratio is 52.48%.