ALTAGAS LTD (ALA.CA) Fundamental Analysis & Valuation
TSX:ALA • CA0213611001
47.71 CAD
+0.39 (+0.82%)
Last: Mar 12, 2026, 07:00 PM
This ALA.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ALA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 industry peers in the Gas Utilities industry. There are concerns on the financial health of ALA while its profitability can be described as average. ALA is valied quite expensively at the moment, while it does show a decent growth rate. ALA also has an excellent dividend rating.
1. ALA.CA Profitability Analysis
1.1 Basic Checks
- ALA had positive earnings in the past year.
- ALA had a positive operating cash flow in the past year.
- Each year in the past 5 years ALA has been profitable.
- In the past 5 years ALA always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ALA (2.87%) is better than 83.33% of its industry peers.
- ALA has a better Return On Equity (8.75%) than 83.33% of its industry peers.
- ALA has a Return On Invested Capital (4.37%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ALA is in line with the industry average of 5.28%.
- The last Return On Invested Capital (4.37%) for ALA 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 belongs to the best 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.
- ALA has a Operating Margin of 10.21%. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
- ALA's Operating Margin has improved in the last couple of years.
- 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.
- ALA'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. ALA.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA is destroying value.
- Compared to 1 year ago, ALA has more shares outstanding
- Compared to 5 years ago, ALA has more shares outstanding
- Compared to 1 year ago, ALA has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.13, we must say that ALA is in the distress zone and has some risk of bankruptcy.
- ALA has a Altman-Z score of 1.13. This is amongst the best in the industry. ALA outperforms 100.00% of its industry peers.
- 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 of 2558.25. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
- ALA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- ALA has a Debt to Equity ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.7
WACC6.23%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that ALA may have some problems paying its short term obligations.
- ALA has a Current ratio (0.88) which is in line with its industry peers.
- ALA has a Quick 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 has a Quick ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.63 |
3. ALA.CA Growth Analysis
3.1 Past
- ALA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.84%.
- ALA 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 shows a small growth in Revenue. The Revenue has grown by 1.55% in the last year.
- ALA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.77% yearly.
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 will show a small growth in Earnings Per Share. The EPS will grow by 6.75% on average per year.
- The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y2.33%
EPS Next 2Y3.86%
EPS Next 3Y7.7%
EPS Next 5Y6.75%
Revenue Next Year1.64%
Revenue Next 2Y3.98%
Revenue Next 3Y4.8%
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. ALA.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.59 indicates a rather expensive valuation of ALA.
- Compared to the rest of the industry, the Price/Earnings ratio of ALA is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ALA to the average of the S&P500 Index (25.70), we can say ALA is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.29, ALA is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as ALA.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, ALA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 20.29 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3712.9 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALA does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of ALA may justify a higher PE ratio.
PEG (NY)9.25
PEG (5Y)1.63
EPS Next 2Y3.86%
EPS Next 3Y7.7%
5. ALA.CA Dividend Analysis
5.1 Amount
- ALA has a Yearly Dividend Yield of 2.80%.
- Compared to an average industry Dividend Yield of 2.03, ALA pays a better dividend. On top of this ALA pays more dividend than 83.33% of the companies listed in the same industry.
- ALA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
- The dividend of ALA has a limited annual growth rate of 0.74%.
- ALA has paid a dividend for at least 10 years, which is a reliable track record.
- ALA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y3.86%
EPS Next 3Y7.7%
ALA.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ALA (3/12/2026, 7:00:00 PM)
47.71
+0.39 (+0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)03-06 2026-03-06/amc
Earnings (Next)N/A N/A
Inst Owners37.58%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap14.85B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts77.14
Price Target47.66 (-0.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-16 2026-03-16 (0.334)
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)0%
PT rev (3m)1.98%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 20.29 | ||
| P/S | 1.17 | ||
| P/FCF | 3712.9 | ||
| P/OCF | 9.68 | ||
| P/B | 1.74 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 13.91 |
EPS(TTM)2.21
EY4.63%
EPS(NY)2.35
Fwd EY4.93%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY10.33%
SpS40.7
BVpS27.36
TBVpS9.27
PEG (NY)9.25
PEG (5Y)1.63
Graham Number36.88
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 | 1.13 |
F-Score7
WACC6.23%
ROIC/WACC0.7
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 Y2.33%
EPS Next 2Y3.86%
EPS Next 3Y7.7%
EPS Next 5Y6.75%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year1.64%
Revenue Next 2Y3.98%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.74%
EBIT Next 3Y19.18%
EBIT Next 5Y12.32%
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.
Can you provide the valuation status for ALTAGAS LTD?
ChartMill assigns a valuation rating of 2 / 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 6 / 10.
Can you provide the PE and PB ratios for ALA stock?
The Price/Earnings (PE) ratio for ALTAGAS LTD (ALA.CA) is 21.59 and the Price/Book (PB) ratio is 1.74.
How sustainable is the dividend of ALTAGAS LTD (ALA.CA) stock?
The dividend rating of ALTAGAS LTD (ALA.CA) is 7 / 10 and the dividend payout ratio is 52.48%.