ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
42.13 CAD
-0.14 (-0.33%)
Taking everything into account, ALA scores 4 out of 10 in our fundamental rating. ALA was compared to 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. While showing a medium growth rate, ALA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
In the past year ALA had a positive cash flow from operations.
ALA had positive earnings in each of the past 5 years.
ALA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALA's Return On Assets of 3.08% is amongst the best of the industry. ALA outperforms 83.33% of its industry peers.
ALA has a Return On Equity of 9.04%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
ALA has a Return On Invested Capital (4.39%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALA is in line with the industry average of 5.33%.
The last Return On Invested Capital (4.39%) for ALA 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
ALA has a Profit Margin of 6.07%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
ALA's Profit Margin has declined in the last couple of years.
ALA's Operating Margin of 9.88% is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of ALA has grown nicely.
ALA has a worse Gross Margin (27.70%) than 66.67% of its industry peers.
ALA'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA is destroying value.
The number of shares outstanding for ALA has been increased compared to 1 year ago.
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
ALA has an Altman-Z score of 1.11. 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 1.11, ALA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALA has a debt to FCF ratio of 1624.33. This is a negative value and a sign of low solvency as ALA would need 1624.33 years to pay back of all of its debts.
ALA has a Debt to FCF ratio of 1624.33. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
ALA has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ALA has a Debt to Equity ratio of 1.08. This is in the better half of the industry: ALA outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.72
WACC6.07%
2.3 Liquidity
ALA has a Current Ratio of 0.96. 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 better Current ratio (0.96) than 66.67% of its industry peers.
A Quick Ratio of 0.74 indicates that ALA may have some problems paying its short term obligations.
ALA 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 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
The Earnings Per Share has been growing by 13.25% on average over the past years. This is quite good.
ALA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
The Revenue has been growing by 17.77% on average over the past years. This is quite good.
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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.17% yearly.
ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
EPS Next Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y0.17%
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
Based on the Price/Earnings ratio of 18.24, the valuation of ALA can be described as rather expensive.
Based on the Price/Earnings ratio, ALA is valued a bit cheaper than 66.67% of the companies in the same industry.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.30, ALA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, ALA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
ALA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALA is more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2102.78 | ||
| EV/EBITDA | 12.49 |
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)4.1
PEG (5Y)1.38
EPS Next 2Y5.69%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, ALA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.05, ALA pays a better dividend. On top of this ALA pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ALA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
49.55% of the earnings are spent on dividend by ALA. This is a bit on the high side, but may be sustainable.
The dividend of ALA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.55%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
TSX:ALA (10/16/2025, 7:00:00 PM)
42.13
-0.14 (-0.33%)
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 Cap12.62B
Analysts74.67
Price Target44.37 (5.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP49.55%
Div Incr Years5
Div Non Decr Years5
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)0%
PT rev (3m)5.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.92%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.3 | ||
| P/S | 0.98 | ||
| P/FCF | 2102.78 | ||
| P/OCF | 8.29 | ||
| P/B | 1.46 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)2.31
EY5.48%
EPS(NY)2.44
Fwd EY5.78%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY12.06%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)4.1
PEG (5Y)1.38
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 | 1.11 |
F-Score6
WACC6.07%
ROIC/WACC0.72
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 Y4.45%
EPS Next 2Y5.69%
EPS Next 3Y8.25%
EPS Next 5Y0.17%
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 Year42.66%
EBIT Next 3Y16.67%
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%