ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
TSX:ALA - Toronto Stock Exchange - CA0213611001 - Common Stock - Currency: CAD
Taking everything into account, ALA scores 3 out of 10 in our fundamental rating. ALA was compared to 8 industry peers in the Gas Utilities industry. ALA has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years ALA has always been profitable.
Each year in the past 5 years ALA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.97%, ALA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ALA has a Return On Equity (6.08%) which is comparable to the rest of the industry.
ALA's Return On Invested Capital of 3.28% is on the low side compared to the rest of the industry. ALA is outperformed by 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALA is below the industry average of 7.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 6.08% | ||
| ROIC | 3.28% |
ROA(3y)1.82%
ROA(5y)2.32%
ROE(3y)5.66%
ROE(5y)6.91%
ROIC(3y)3.47%
ROIC(5y)2.68%
1.3 Margins
With a Profit Margin value of 3.91%, ALA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ALA's Profit Margin has declined in the last couple of years.
ALA's Operating Margin of 7.47% is on the low side compared to the rest of the industry. ALA is outperformed by 71.43% of its industry peers.
ALA's Operating Margin has declined in the last couple of years.
The Gross Margin of ALA (24.89%) is worse than 71.43% of its industry peers.
In the last couple of years the Gross Margin of ALA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.47% | ||
| PM (TTM) | 3.91% | ||
| GM | 24.89% |
OM growth 3Y-15.76%
OM growth 5YN/A
PM growth 3Y-17.23%
PM growth 5YN/A
GM growth 3Y-19.85%
GM growth 5Y-12.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALA 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.
The debt/assets ratio for ALA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that ALA is in the distress zone and has some risk of bankruptcy.
ALA has a Altman-Z score of 0.99. This is amongst the best in the industry. ALA outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ALA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.22, ALA perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.58
WACC5.65%
2.3 Liquidity
ALA has a Current Ratio of 1.03. This is a normal value and indicates that ALA is financially healthy and should not expect problems in meeting its short term obligations.
ALA has a Current ratio (1.03) which is comparable to the rest of the industry.
ALA has a Quick Ratio of 1.03. 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 0.79, ALA is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.60% over the past year.
The Earnings Per Share has been growing by 16.00% on average over the past years. This is quite good.
The Revenue has decreased by -8.30% in the past year.
Measured over the past years, ALA shows a very strong growth in Revenue. The Revenue has been growing by 25.01% on average per year.
EPS 1Y (TTM)22.6%
EPS 3Y10%
EPS 5Y16%
EPS Q2Q%40%
Revenue 1Y (TTM)-8.3%
Revenue growth 3Y32.5%
Revenue growth 5Y25.01%
Sales Q2Q%-8.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.17% on average over the next years.
EPS Next Y13.75%
EPS Next 2Y9.16%
EPS Next 3Y9.46%
EPS Next 5Y8.91%
Revenue Next Year-10.88%
Revenue Next 2Y-2.57%
Revenue Next 3Y0.17%
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
Based on the Price/Earnings ratio of 17.24, the valuation of ALA can be described as rather expensive.
ALA's Price/Earnings ratio is in line with the industry average.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.62, which indicates a correct valuation of ALA.
The rest of the industry has a similar Price/Forward Earnings ratio as ALA.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ALA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than ALA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.25
PEG (5Y)1.08
EPS Next 2Y9.16%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.50%.
ALA's Dividend Yield is rather good when compared to the industry average which is at 3.55. ALA pays more dividend than 85.71% of the companies in the same industry.
ALA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of ALA decreases each year by -13.07%.
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)-13.07%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
74.59% of the earnings are spent on dividend by ALA. This is not a sustainable payout ratio.
DP74.59%
EPS Next 2Y9.16%
EPS Next 3Y9.46%
TSX:ALA (3/7/2025, 7:00:00 PM)
37.42
+1.37 (+3.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners0.62%
Ins Owner ChangeN/A
Market Cap11.15B
Analysts75.71
Price Target39.58 (5.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend1.19
Dividend Growth(5Y)-13.07%
DP74.59%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.93%
Min EPS beat(2)23.34%
Max EPS beat(2)54.51%
EPS beat(4)3
Avg EPS beat(4)20.62%
Min EPS beat(4)-3.56%
Max EPS beat(4)54.51%
EPS beat(8)5
Avg EPS beat(8)9.05%
EPS beat(12)7
Avg EPS beat(12)5.04%
EPS beat(16)11
Avg EPS beat(16)256.84%
Revenue beat(2)1
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-14.32%
Max Revenue beat(2)8.36%
Revenue beat(4)1
Avg Revenue beat(4)-9.76%
Min Revenue beat(4)-20.81%
Max Revenue beat(4)8.36%
Revenue beat(8)2
Avg Revenue beat(8)1.48%
Revenue beat(12)6
Avg Revenue beat(12)32.67%
Revenue beat(16)10
Avg Revenue beat(16)50.12%
PT rev (1m)1.04%
PT rev (3m)2.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 16.62 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 9.42 | ||
| P/B | 1.39 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | 14.66 |
EPS(TTM)2.17
EY5.8%
EPS(NY)2.25
Fwd EY6.02%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)3.97
OCFY10.62%
SpS41.88
BVpS26.93
TBVpS8.52
PEG (NY)1.25
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 6.08% | ||
| ROCE | 4.29% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 4.57% | ||
| OM | 7.47% | ||
| PM (TTM) | 3.91% | ||
| GM | 24.89% | ||
| FCFM | N/A |
ROA(3y)1.82%
ROA(5y)2.32%
ROE(3y)5.66%
ROE(5y)6.91%
ROIC(3y)3.47%
ROIC(5y)2.68%
ROICexc(3y)3.48%
ROICexc(5y)2.69%
ROICexgc(3y)4.77%
ROICexgc(5y)3.7%
ROCE(3y)4.51%
ROCE(5y)3.48%
ROICexcg growth 3Y8.69%
ROICexcg growth 5YN/A
ROICexc growth 3Y9.85%
ROICexc growth 5YN/A
OM growth 3Y-15.76%
OM growth 5YN/A
PM growth 3Y-17.23%
PM growth 5YN/A
GM growth 3Y-19.85%
GM growth 5Y-12.11%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.03 | ||
| Cap/Depr | 271.86% | ||
| Cap/Sales | 10.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.99 |
F-Score6
WACC5.65%
ROIC/WACC0.58
Cap/Depr(3y)208.32%
Cap/Depr(5y)226.65%
Cap/Sales(3y)7.25%
Cap/Sales(5y)12.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.6%
EPS 3Y10%
EPS 5Y16%
EPS Q2Q%40%
EPS Next Y13.75%
EPS Next 2Y9.16%
EPS Next 3Y9.46%
EPS Next 5Y8.91%
Revenue 1Y (TTM)-8.3%
Revenue growth 3Y32.5%
Revenue growth 5Y25.01%
Sales Q2Q%-8.94%
Revenue Next Year-10.88%
Revenue Next 2Y-2.57%
Revenue Next 3Y0.17%
Revenue Next 5YN/A
EBIT growth 1Y16.35%
EBIT growth 3Y11.63%
EBIT growth 5YN/A
EBIT Next Year30.54%
EBIT Next 3Y12.65%
EBIT Next 5Y8.88%
FCF growth 1Y62.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y76.98%
OCF growth 3Y13.19%
OCF growth 5YN/A