ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
40.82 CAD
-0.75 (-1.8%)
We assign a fundamental rating of 5 out of 10 to ALA. 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. ALA has a correct valuation and a medium growth rate. ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ALA had positive earnings in the past year.
ALA had a positive operating cash flow in the past year.
ALA had positive earnings in each of the past 5 years.
In the past 5 years ALA always reported a positive cash flow from operatings.
1.2 Ratios
ALA has a better Return On Assets (2.87%) than 83.33% of its industry peers.
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.
The Return On Invested Capital of ALA (4.37%) 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 5.31%.
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.
ALA's Profit Margin has declined in the last couple of years.
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.
In the last couple of years the Operating Margin of ALA has grown nicely.
Looking at the Gross Margin, with a value of 28.43%, ALA is doing worse than 66.67% of the companies in the same industry.
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.
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
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.
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.
Looking at the Debt to FCF ratio, with a value of 2558.25, ALA is in the better half of 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.
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
WACC5.93%
2.3 Liquidity
A Current Ratio of 0.88 indicates that ALA may have some problems paying its short term obligations.
ALA has a better Current ratio (0.88) than 66.67% of its industry peers.
A Quick Ratio of 0.63 indicates that ALA may have some problems paying its short term obligations.
ALA has a Quick ratio of 0.63. This is comparable to the rest of the industry: ALA outperforms 50.00% of 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.
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 1.55% in the past year.
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
The Earnings Per Share is expected to grow by 4.14% on average over the next years.
ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
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
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
With a Price/Earnings ratio of 18.47, ALA is valued on the expensive side.
Based on the Price/Earnings ratio, ALA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.17, ALA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.36, 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.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (23.79), we can say ALA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.36 |
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 the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3174.78 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.66
PEG (5Y)1.39
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
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.
Compared to an average S&P500 Dividend Yield of 1.94, ALA pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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.
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 (1/6/2026, 7:00:00 PM)
40.82
-0.75 (-1.8%)
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 Cap12.70B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target47.57 (16.54%)
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 | 18.47 | ||
| Fwd PE | 17.36 | ||
| P/S | 1 | ||
| P/FCF | 3174.78 | ||
| P/OCF | 8.28 | ||
| P/B | 1.49 | ||
| P/tB | 4.4 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.21
EY5.41%
EPS(NY)2.35
Fwd EY5.76%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY12.08%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)5.66
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 | 1.06 |
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 18.47 and the Price/Book (PB) ratio is 1.49.
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%.