ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
41.92 CAD
-0.31 (-0.73%)
Taking everything into account, ALA scores 5 out of 10 in our fundamental rating. ALA was compared to 6 industry peers in the Gas Utilities industry. ALA has a medium profitability rating, but doesn't score so well on its financial health evaluation. ALA is not valued too expensively and it also shows a decent growth rate. ALA also has an excellent dividend rating.
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.
ALA had positive earnings in each of the past 5 years.
Each year in the past 5 years ALA had a positive operating cash flow.
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.
ALA has a Return On Equity of 8.75%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
ALA has a Return On Invested Capital (4.37%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years 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
ALA has a Profit Margin of 5.88%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
The Operating Margin of ALA (10.21%) is comparable to the rest of the industry.
ALA's Operating Margin has improved in the last couple of years.
ALA has a worse Gross Margin (28.43%) than 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
ALA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.07. This is a bad value and indicates that ALA is not financially healthy and even has some risk of bankruptcy.
ALA has a better Altman-Z score (1.07) than 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.
ALA has a better Debt to FCF ratio (2558.25) than 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.
Looking at the Debt to Equity ratio, with a value of 1.15, ALA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.74
WACC5.93%
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.
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.
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.
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
ALA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y3.31%
EPS Next 2Y3.85%
EPS Next 3Y7.1%
EPS Next 5Y4.14%
Revenue Next Year1.86%
Revenue Next 2Y3.99%
Revenue Next 3Y4.81%
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
A Price/Earnings ratio of 18.97 indicates a rather expensive valuation of ALA.
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 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.83, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.56. ALA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 17.83 |
4.2 Price Multiples
ALA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALA is more expensive than 66.67% of the companies in the same industry.
ALA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALA is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3260.33 | ||
| EV/EBITDA | 12.9 |
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.
The decent profitability rating of ALA may justify a higher PE ratio.
PEG (NY)5.74
PEG (5Y)1.43
EPS Next 2Y3.85%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.16%.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.15. ALA pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ALA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 2Y3.85%
EPS Next 3Y7.1%
TSX:ALA (12/8/2025, 7:00:00 PM)
41.92
-0.31 (-0.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners36.41%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap13.04B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target46.73 (11.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)3.66%
PT rev (3m)5.33%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 17.83 | ||
| P/S | 1.03 | ||
| P/FCF | 3260.33 | ||
| P/OCF | 8.5 | ||
| P/B | 1.53 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)2.21
EY5.27%
EPS(NY)2.35
Fwd EY5.61%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY11.76%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)5.74
PEG (5Y)1.43
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 | 1.07 |
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 Y3.31%
EPS Next 2Y3.85%
EPS Next 3Y7.1%
EPS Next 5Y4.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y5.59%
Revenue growth 5Y17.77%
Sales Q2Q%-5.84%
Revenue Next Year1.86%
Revenue Next 2Y3.99%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
EBIT growth 1Y38.73%
EBIT growth 3Y4.37%
EBIT growth 5Y56.06%
EBIT Next Year42.58%
EBIT Next 3Y18.31%
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.
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%.