ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
40.6 CAD
-0.22 (-0.54%)
ALA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Gas Utilities industry. While ALA is still in line with the averages on profitability rating, there are concerns on its financial health. ALA is not valued too expensively and it also shows a decent growth rate. Finally ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ALA had positive earnings in the past year.
In the past year ALA had a positive cash flow from operations.
Each year in the past 5 years ALA has been profitable.
Each year in the past 5 years ALA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 2.87%, ALA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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 has a Return On Invested Capital (4.37%) which is comparable to the rest of the industry.
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 5.31%.
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
The Profit Margin of ALA (5.88%) is better than 83.33% of its industry peers.
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 worse Gross Margin (28.43%) than 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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALA is destroying value.
ALA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALA has been increased compared to 5 years ago.
Compared to 1 year ago, ALA has an improved debt to assets ratio.
2.2 Solvency
ALA has an Altman-Z score of 1.05. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
ALA's Altman-Z score of 1.05 is amongst the best of 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.
With a decent Debt to FCF ratio value of 2558.25, ALA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 of 1.15. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.74
WACC5.93%
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.
With a decent Current ratio value of 0.88, ALA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 in line with its industry peers.
| 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.
ALA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
ALA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
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
ALA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
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.
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 18.37, which indicates a rather expensive current valuation of ALA.
ALA's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA is cheaper than 66.67% of the companies in the same industry.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.27, the valuation of ALA can be described as rather expensive.
ALA's Price/Forward Earnings is on the same level as the industry average.
ALA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ALA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALA indicates a somewhat cheap valuation: ALA is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3157.67 | ||
| EV/EBITDA | 12.67 |
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.
ALA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.63
PEG (5Y)1.39
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, ALA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.15, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 2Y3.85%
EPS Next 3Y7.01%
TSX:ALA (1/7/2026, 7:00:00 PM)
40.6
-0.22 (-0.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.05%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap12.63B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target47.57 (17.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)2.27%
PT rev (3m)7.21%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 17.27 | ||
| P/S | 1 | ||
| P/FCF | 3157.67 | ||
| P/OCF | 8.23 | ||
| P/B | 1.48 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 12.67 |
EPS(TTM)2.21
EY5.44%
EPS(NY)2.35
Fwd EY5.79%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY12.15%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)5.63
PEG (5Y)1.39
Graham Number36.89
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 | 1.05 |
F-Score7
WACC5.93%
ROIC/WACC0.74
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 Y3.27%
EPS Next 2Y3.85%
EPS Next 3Y7.01%
EPS Next 5Y4.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year43.2%
EBIT Next 3Y18.82%
EBIT Next 5Y12.37%
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 5 / 10 to ALA.CA.
Can you provide the valuation status for ALTAGAS LTD?
ChartMill assigns a valuation rating of 4 / 10 to ALTAGAS LTD (ALA.CA). This can be considered as Fairly Valued.
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 18.37 and the Price/Book (PB) ratio is 1.48.
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%.