ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
41.94 CAD
+0.18 (+0.43%)
ALA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 8 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 fine compared to the rest of the industry. ALA outperforms 62.50% of its industry peers.
ALA has a Return On Equity of 9.04%. This is in the better half of the industry: ALA outperforms 62.50% of its industry peers.
With a Return On Invested Capital value of 4.39%, ALA is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ALA is in line with the industry average of 4.90%.
The 3 year average ROIC (3.44%) for ALA is below the current ROIC(4.39%), indicating increased profibility in the last year.
| 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 in the better half of the industry: ALA outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
Looking at the Operating Margin, with a value of 9.88%, ALA is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ALA has grown nicely.
ALA has a Gross Margin of 27.70%. This is in the lower half of the industry: ALA underperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of ALA has declined.
| 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
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
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 1.11. 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.
The Debt to FCF ratio of ALA is 1624.33, which is on the high side as it means it would take ALA, 1624.33 years of fcf income to pay off all of its debts.
ALA has a worse Debt to FCF ratio (1624.33) than 75.00% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ALA has dependencies on debt financing.
The Debt to Equity ratio of ALA (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1624.33 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.72
WACC6.09%
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.
Looking at the Current ratio, with a value of 0.96, ALA is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ALA has a Quick 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.
With a Quick ratio value of 0.74, ALA is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 0.65% in the past year.
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 decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.15% yearly.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
EPS Next 5Y-0.15%
Revenue Next Year0.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.46%
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.
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
A Price/Earnings ratio of 18.16 indicates a rather expensive valuation of ALA.
62.50% of the companies in the same industry are cheaper than ALA, based on the Price/Earnings ratio.
ALA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
A Price/Forward Earnings ratio of 17.21 indicates a rather expensive valuation of ALA.
62.50% of the companies in the same industry are cheaper than ALA, based on the Price/Forward Earnings ratio.
ALA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than ALA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALA is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2093.29 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.03
PEG (5Y)1.37
EPS Next 2Y5.72%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.16. ALA pays more dividend than 87.50% of the companies in the same industry.
ALA's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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.
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.
DP49.55%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
TSX:ALA (9/15/2025, 7:00:00 PM)
41.94
+0.18 (+0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.37%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap12.56B
Analysts74.67
Price Target44.37 (5.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)1.64%
PT rev (3m)5.24%
EPS NQ rev (1m)5.96%
EPS NQ rev (3m)-60.47%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 17.21 | ||
| P/S | 0.98 | ||
| P/FCF | 2093.29 | ||
| P/OCF | 8.26 | ||
| P/B | 1.46 | ||
| P/tB | 4.06 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)2.31
EY5.51%
EPS(NY)2.44
Fwd EY5.81%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)5.08
OCFY12.11%
SpS42.85
BVpS28.78
TBVpS10.32
PEG (NY)4.03
PEG (5Y)1.37
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
WACC6.09%
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 Y4.5%
EPS Next 2Y5.72%
EPS Next 3Y8.29%
EPS Next 5Y-0.15%
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 Year42.74%
EBIT Next 3Y16.7%
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%