ALTAGAS LTD (ALA.CA) Fundamental Analysis & Valuation

TSX:ALA • CA0213611001

Current stock price

48.67 CAD
+0.84 (+1.76%)
Last:

This ALA.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ALA.CA Profitability Analysis

1.1 Basic Checks

  • In the past year ALA was profitable.
  • In the past year ALA had a positive cash flow from operations.
  • Each year in the past 5 years ALA has been profitable.
  • ALA had a positive operating cash flow in each of the past 5 years.
ALA.CA Yearly Net Income VS EBIT VS OCF VS FCFALA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B 1.5B

1.2 Ratios

  • ALA has a better Return On Assets (2.79%) than 83.33% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.38%, 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 3.74%. This is in line with the industry average of 5.27%.
  • The last Return On Invested Capital (4.37%) for ALA is above the 3 year average (3.74%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.79%
ROE 8.38%
ROIC 4.37%
ROA(3y)2.58%
ROA(5y)2.09%
ROE(3y)7.76%
ROE(5y)6.39%
ROIC(3y)3.74%
ROIC(5y)3.68%
ALA.CA Yearly ROA, ROE, ROICALA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

1.3 Margins

  • ALA has a better Profit Margin (5.88%) 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 10.26%. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
  • ALA's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 29.02%, ALA is doing worse than 66.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALA has declined.
Industry RankSector Rank
OM 10.26%
PM (TTM) 5.88%
GM 29.02%
OM growth 3Y15.86%
OM growth 5Y-1.37%
PM growth 3Y27.56%
PM growth 5Y-7.53%
GM growth 3Y11.5%
GM growth 5Y-7.61%
ALA.CA Yearly Profit, Operating, Gross MarginsALA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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2

2. ALA.CA Health Analysis

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
  • ALA has more shares outstanding than it did 5 years ago.
  • ALA has a better debt/assets ratio than last year.
ALA.CA Yearly Shares OutstandingALA.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
ALA.CA Yearly Total Debt VS Total AssetsALA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.10, we must say that ALA is in the distress zone and has some risk of bankruptcy.
  • ALA's Altman-Z score of 1.10 is amongst the best of the industry. ALA outperforms 100.00% of its industry peers.
  • ALA has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ALA (1.07) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF N/A
Altman-Z 1.1
ROIC/WACC0.7
WACC6.23%
ALA.CA Yearly LT Debt VS Equity VS FCFALA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.82 indicates that ALA may have some problems paying its short term obligations.
  • ALA has a Current ratio of 0.82. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
  • ALA has a Quick Ratio of 0.82. 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 Quick ratio of 0.64 is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.64
ALA.CA Yearly Current Assets VS Current LiabilitesALA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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 1.83%.
  • ALA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.35% yearly.
  • The Revenue has been growing slightly by 2.06% in the past year.
  • Measured over the past years, ALA shows a quite strong growth in Revenue. The Revenue has been growing by 17.86% on average per year.
EPS 1Y (TTM)1.83%
EPS 3Y6.85%
EPS 5Y9.35%
EPS Q2Q%1.32%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y-3.38%
Revenue growth 5Y17.86%
Sales Q2Q%1.07%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.94% on average over the next years.
  • Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
EPS Next Y5.93%
EPS Next 2Y10.76%
EPS Next 3Y3.43%
EPS Next 5Y3.94%
Revenue Next Year6.38%
Revenue Next 2Y6.41%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALA.CA Yearly Revenue VS EstimatesALA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B
ALA.CA Yearly EPS VS EstimatesALA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3

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2

4. ALA.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.92, the valuation of ALA can be described as rather expensive.
  • ALA's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.60. ALA is around the same levels.
  • A Price/Forward Earnings ratio of 20.70 indicates a rather expensive valuation of ALA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA is on the same level as its industry peers.
  • ALA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.92
Fwd PE 20.7
ALA.CA Price Earnings VS Forward Price EarningsALA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.65
ALA.CA Per share dataALA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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)3.69
PEG (5Y)2.35
EPS Next 2Y10.76%
EPS Next 3Y3.43%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ALA.CA Dividend Analysis

5.1 Amount

  • ALA has a Yearly Dividend Yield of 2.78%.
  • ALA's Dividend Yield is rather good when compared to the industry average which is at 2.14. ALA pays more dividend than 83.33% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, ALA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.78%

5.2 History

  • The dividend of ALA has a limited annual growth rate of 1.77%.
  • 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)1.77%
Div Incr Years5
Div Non Decr Years5
ALA.CA Yearly Dividends per shareALA.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • ALA pays out 53.28% 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.
DP53.28%
EPS Next 2Y10.76%
EPS Next 3Y3.43%
ALA.CA Yearly Income VS Free CF VS DividendALA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
ALA.CA Dividend Payout.ALA.CA Dividend Payout, showing the Payout Ratio.ALA.CA Dividend Payout.PayoutRetained Earnings

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ALA.CA Fundamentals: All Metrics, Ratios and Statistics

ALTAGAS LTD

TSX:ALA (4/2/2026, 7:00:00 PM)

48.67

+0.84 (+1.76%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)03-06
Earnings (Next)04-23
Inst Owners37.58%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap15.15B
Revenue(TTM)12.71B
Net Income(TTM)747.00M
Analysts77.14
Price Target49.67 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.78%
Yearly Dividend1.31
Dividend Growth(5Y)1.77%
DP53.28%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.3%
Min EPS beat(2)-27.05%
Max EPS beat(2)0.44%
EPS beat(4)2
Avg EPS beat(4)-3.08%
Min EPS beat(4)-27.05%
Max EPS beat(4)14.8%
EPS beat(8)6
Avg EPS beat(8)9.98%
EPS beat(12)8
Avg EPS beat(12)6.15%
EPS beat(16)10
Avg EPS beat(16)3.5%
Revenue beat(2)0
Avg Revenue beat(2)-7.18%
Min Revenue beat(2)-9.48%
Max Revenue beat(2)-4.88%
Revenue beat(4)1
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)8.03%
Revenue beat(8)2
Avg Revenue beat(8)-4.35%
Revenue beat(12)2
Avg Revenue beat(12)-7.38%
Revenue beat(16)6
Avg Revenue beat(16)16.08%
PT rev (1m)4.22%
PT rev (3m)4.42%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 21.92
Fwd PE 20.7
P/S 1.19
P/FCF N/A
P/OCF 12.27
P/B 1.7
P/tB 4.51
EV/EBITDA 13.65
EPS(TTM)2.22
EY4.56%
EPS(NY)2.35
Fwd EY4.83%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)3.97
OCFY8.15%
SpS40.81
BVpS28.64
TBVpS10.78
PEG (NY)3.69
PEG (5Y)2.35
Graham Number37.82
Profitability
Industry RankSector Rank
ROA 2.79%
ROE 8.38%
ROCE 5.61%
ROIC 4.37%
ROICexc 4.39%
ROICexgc 5.76%
OM 10.26%
PM (TTM) 5.88%
GM 29.02%
FCFM N/A
ROA(3y)2.58%
ROA(5y)2.09%
ROE(3y)7.76%
ROE(5y)6.39%
ROIC(3y)3.74%
ROIC(5y)3.68%
ROICexc(3y)3.75%
ROICexc(5y)3.69%
ROICexgc(3y)5.02%
ROICexgc(5y)4.99%
ROCE(3y)4.8%
ROCE(5y)4.73%
ROICexgc growth 3Y6.76%
ROICexgc growth 5Y10.12%
ROICexc growth 3Y7.71%
ROICexc growth 5Y11.73%
OM growth 3Y15.86%
OM growth 5Y-1.37%
PM growth 3Y27.56%
PM growth 5Y-7.53%
GM growth 3Y11.5%
GM growth 5Y-7.61%
F-Score7
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF N/A
Debt/EBITDA 5.23
Cap/Depr 313.54%
Cap/Sales 12.76%
Interest Coverage 2.78
Cash Conversion 67.86%
Profit Quality N/A
Current Ratio 0.82
Quick Ratio 0.64
Altman-Z 1.1
F-Score7
WACC6.23%
ROIC/WACC0.7
Cap/Depr(3y)273.26%
Cap/Depr(5y)246.18%
Cap/Sales(3y)10.39%
Cap/Sales(5y)9.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.83%
EPS 3Y6.85%
EPS 5Y9.35%
EPS Q2Q%1.32%
EPS Next Y5.93%
EPS Next 2Y10.76%
EPS Next 3Y3.43%
EPS Next 5Y3.94%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y-3.38%
Revenue growth 5Y17.86%
Sales Q2Q%1.07%
Revenue Next Year6.38%
Revenue Next 2Y6.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.75%
EBIT growth 3Y11.94%
EBIT growth 5Y16.24%
EBIT Next Year23.44%
EBIT Next 3Y11.02%
EBIT Next 5Y8.12%
FCF growth 1Y-359.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.7%
OCF growth 3Y31.92%
OCF growth 5Y9.82%

ALTAGAS LTD / ALA.CA Fundamental Analysis 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.


What is the profitability of ALA stock?

ALTAGAS LTD (ALA.CA) has a profitability rating of 6 / 10.


How financially healthy is ALTAGAS LTD?

The financial health rating of ALTAGAS LTD (ALA.CA) is 2 / 10.


What is the earnings growth outlook for ALTAGAS LTD?

The Earnings per Share (EPS) of ALTAGAS LTD (ALA.CA) is expected to grow by 5.93% in the next year.