ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - TSX:ALA - CA0213611001 - Common Stock
43.47 CAD
+0.92 (+2.16%)
We assign a fundamental rating of 4 out of 10 to ALA. ALA was compared to 6 industry peers in the Gas Utilities industry. While ALA has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, ALA is valued expensive at the moment. 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.
ALA had a positive operating cash flow in each of the past 5 years.
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.
With an excellent Return On Equity value of 8.75%, ALA belongs to the best 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 5.33%.
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
With an excellent Profit Margin value of 5.88%, ALA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of ALA has grown nicely.
ALA's Gross Margin of 28.43% is on the low side compared to the rest of the industry. ALA is outperformed by 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
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.
ALA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that ALA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, ALA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
ALA has a Debt to FCF ratio (2558.25) which is in line with its industry peers.
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/WACC0.73
WACC5.99%
2.3 Liquidity
A Current Ratio of 0.88 indicates that ALA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, ALA is in line with its industry, outperforming 50.00% 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.
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
ALA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.84%.
Measured over the past years, ALA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.25% on average per year.
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
Based on estimates for the next years, ALA will show a small growth in Earnings Per Share. The EPS will grow by 4.25% on average per year.
Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
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
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 19.67, ALA is valued on the expensive side.
ALA's Price/Earnings is on the same level as the industry average.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.53, the valuation of ALA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALA indicates a somewhat cheap valuation: ALA is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ALA to the average of the S&P500 Index (34.59), we can say ALA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 18.53 |
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.
ALA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3254.5 | ||
| EV/EBITDA | 12.73 |
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)5.36
PEG (5Y)1.48
EPS Next 2Y3.74%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.06%. 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 3.04. ALA pays more dividend than 83.33% of the companies in the same industry.
ALA's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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.
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 (11/14/2025, 7:00:00 PM)
43.47
+0.92 (+2.16%)
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 Cap13.02B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts74.67
Price Target45.08 (3.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)1.61%
PT rev (3m)6%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-8.16%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 18.53 | ||
| P/S | 1.03 | ||
| P/FCF | 3254.5 | ||
| P/OCF | 8.49 | ||
| P/B | 1.53 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)2.21
EY5.08%
EPS(NY)2.35
Fwd EY5.4%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)5.12
OCFY11.78%
SpS42.31
BVpS28.44
TBVpS9.64
PEG (NY)5.36
PEG (5Y)1.48
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
WACC5.99%
ROIC/WACC0.73
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 4 / 10 to ALA.CA.
What is the valuation status of ALTAGAS LTD (ALA.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ALTAGAS LTD (ALA.CA). This can be considered as Overvalued.
Can you provide the profitability details for ALTAGAS LTD?
ALTAGAS LTD (ALA.CA) has a profitability rating of 7 / 10.
Can you provide the financial health for ALA stock?
The financial health rating of ALTAGAS LTD (ALA.CA) is 2 / 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%.