ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
42.7 CAD
-0.49 (-1.13%)
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 has a correct valuation and a medium 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.
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's Return On Equity of 8.75% is amongst the best of the industry. ALA outperforms 83.33% of its industry peers.
The Return On Invested Capital of ALA (4.37%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ALA is significantly below the industry average of 10.35%.
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
ALA's Profit Margin of 5.88% is amongst the best of the industry. ALA outperforms 83.33% of its industry peers.
ALA's Profit Margin has declined in the last couple of years.
ALA has a better Operating Margin (10.21%) than 66.67% 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA is destroying value.
ALA has more shares outstanding than it did 1 year ago.
ALA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALA has been reduced compared to a year ago.
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.
ALA's Altman-Z score of 1.06 is amongst the best of the industry. ALA outperforms 100.00% of its industry peers.
ALA has a debt to FCF ratio of 2558.25. This is a negative value and a sign of low solvency as ALA would need 2558.25 years to pay back of all of its debts.
ALA's Debt to FCF ratio of 2558.25 is fine compared to the rest of the industry. ALA outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that ALA has dependencies on debt financing.
The Debt to Equity ratio of ALA (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.74
WACC5.91%
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.
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.
The Quick ratio of ALA (0.63) 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.
ALA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
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
ALA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.25% yearly.
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
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
With a Price/Earnings ratio of 19.32, ALA is valued on the expensive side.
66.67% of the companies in the same industry are more expensive than ALA, based on the Price/Earnings ratio.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
ALA is valuated rather expensively with a Price/Forward Earnings ratio of 18.20.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, ALA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 18.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA indicates a slightly more expensive valuation: ALA is more expensive than 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALA is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3196.85 | ||
| EV/EBITDA | 12.76 |
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)5.26
PEG (5Y)1.46
EPS Next 2Y3.74%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 2.90%.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.08. ALA pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ALA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
52.48% of the earnings are spent on dividend by ALA. This is a bit on the high side, but may be sustainable.
ALA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.48%
EPS Next 2Y3.74%
EPS Next 3Y6.93%
TSX:ALA (11/25/2025, 7:00:00 PM)
42.7
-0.49 (-1.13%)
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 Cap12.79B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts74.67
Price Target46.51 (8.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)4.83%
PT rev (3m)4.83%
EPS NQ rev (1m)-2.78%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 18.2 | ||
| P/S | 1.01 | ||
| P/FCF | 3196.85 | ||
| P/OCF | 8.34 | ||
| P/B | 1.5 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)2.21
EY5.18%
EPS(NY)2.35
Fwd EY5.49%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)5.12
OCFY12%
SpS42.31
BVpS28.44
TBVpS9.64
PEG (NY)5.26
PEG (5Y)1.46
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
WACC5.91%
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 Y3.67%
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 5 / 10 to ALA.CA.
What is the valuation status of ALTAGAS LTD (ALA.CA) stock?
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 financial health for ALA stock?
The financial health rating of ALTAGAS LTD (ALA.CA) is 3 / 10.
Can you provide the dividend sustainability for ALA stock?
The dividend rating of ALTAGAS LTD (ALA.CA) is 7 / 10 and the dividend payout ratio is 52.48%.