ALTAGAS LTD (ALA.CA) Fundamental Analysis & Valuation

TSX:ALA • CA0213611001

Current stock price

50.91 CAD
+0.27 (+0.53%)
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

  • ALA had positive earnings in the past year.
  • In the past year ALA had a positive cash flow from operations.
  • In the past 5 years ALA has always 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

  • The Return On Assets of ALA (2.79%) is better than 83.33% of its industry peers.
  • ALA has a Return On Equity of 8.38%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
  • 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 5.41%.
  • The 3 year average ROIC (3.74%) for ALA is below the current ROIC(4.37%), indicating increased profibility in the last year.
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'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.
  • With a Operating Margin value of 10.26%, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ALA has remained more or less at the same level.
  • 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.
  • ALA's Gross Margin has declined in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA is destroying value.
  • The number of shares outstanding for ALA has been increased compared to 1 year ago.
  • 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.
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

  • ALA has an Altman-Z score of 1.13. 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 1.13, ALA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • ALA has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • ALA's Debt to Equity ratio of 1.07 is in line compared to the rest of the industry. ALA outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF N/A
Altman-Z 1.13
ROIC/WACC0.69
WACC6.37%
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 (0.82) which is in line with its industry peers.
  • A Quick Ratio of 0.64 indicates that ALA may have some problems paying its short term obligations.
  • ALA has a Quick ratio (0.64) which is comparable to the rest of the industry.
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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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.
  • ALA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
  • The Revenue has been growing by 17.86% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, ALA will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
  • Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y6.54%
EPS Next 2Y10.45%
EPS Next 3Y10.66%
EPS Next 5Y7.36%
Revenue Next Year7.51%
Revenue Next 2Y6.61%
Revenue Next 3Y5.42%
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.
  • 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.
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 2028 5B 10B 15B
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

  • A Price/Earnings ratio of 22.93 indicates a rather expensive valuation of ALA.
  • ALA's Price/Earnings ratio is in line with the industry average.
  • ALA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 21.52, 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.
  • ALA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.93
Fwd PE 21.52
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 the industry average as 66.67% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.03
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 an expensive valuation of the company.
  • ALA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)2.45
EPS Next 2Y10.45%
EPS Next 3Y10.66%

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7

5. ALA.CA Dividend Analysis

5.1 Amount

  • ALA has a Yearly Dividend Yield of 2.69%.
  • Compared to an average industry Dividend Yield of 2.05, 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 1.82, ALA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.69%

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.
  • As ALA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.77%
Div Incr Years6
Div Non Decr Years6
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.
  • ALA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.28%
EPS Next 2Y10.45%
EPS Next 3Y10.66%
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 (4/30/2026, 7:00:00 PM)

50.91

+0.27 (+0.53%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Industry Strength24.41
Industry Growth55.22
Earnings (Last)03-06
Earnings (Next)04-30
Inst Owners38.36%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap15.85B
Revenue(TTM)12.71B
Net Income(TTM)747.00M
Analysts77.14
Price Target49.88 (-2.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.69%
Yearly Dividend1.31
Dividend Growth(5Y)1.77%
DP53.28%
Div Incr Years6
Div Non Decr Years6
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)4.65%
PT rev (3m)4.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)0.57%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)1.08%
Valuation
Industry RankSector Rank
PE 22.93
Fwd PE 21.52
P/S 1.25
P/FCF N/A
P/OCF 12.84
P/B 1.78
P/tB 4.72
EV/EBITDA 14.03
EPS(TTM)2.22
EY4.36%
EPS(NY)2.37
Fwd EY4.65%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)3.97
OCFY7.79%
SpS40.8
BVpS28.63
TBVpS10.78
PEG (NY)3.51
PEG (5Y)2.45
Graham Number37.8148 (-25.72%)
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 1.13
F-Score7
WACC6.37%
ROIC/WACC0.69
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 Y6.54%
EPS Next 2Y10.45%
EPS Next 3Y10.66%
EPS Next 5Y7.36%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y-3.38%
Revenue growth 5Y17.86%
Sales Q2Q%1.07%
Revenue Next Year7.51%
Revenue Next 2Y6.61%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
EBIT growth 1Y27.75%
EBIT growth 3Y11.94%
EBIT growth 5Y16.24%
EBIT Next Year24.43%
EBIT Next 3Y12.95%
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 6.54% in the next year.