ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALA - CA0213611001 - Common Stock
42.18 CAD
+0.33 (+0.79%)
ALA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Gas Utilities industry. While ALA is still in line with the averages on profitability rating, there are concerns on its financial health. ALA has a correct valuation and a medium growth rate. Finally ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ALA was profitable.
In the past year ALA had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.87%, ALA belongs to the top 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 comparable to the rest of the industry.
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 better Profit Margin (5.88%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of ALA has declined.
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.
With a Gross Margin value of 28.43%, ALA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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
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
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's Altman-Z score of 1.07 is amongst the best of the industry. ALA outperforms 100.00% of its industry peers.
ALA has a debt to FCF ratio of 2558.25. This is a negative value and a sign of low solvency as ALA would need 2558.25 years to pay back of all of its debts.
ALA's Debt to FCF ratio of 2558.25 is fine compared to the rest of the industry. ALA outperforms 66.67% of its industry peers.
ALA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
ALA has a Debt to Equity ratio of 1.15. This is comparable to the rest of the industry: ALA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2558.25 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.73
WACC5.97%
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's Current ratio of 0.88 is fine compared to the rest of the industry. ALA outperforms 66.67% of its industry peers.
A Quick Ratio of 0.63 indicates that ALA may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, ALA perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
ALA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
ALA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
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
Based on estimates for the next years, ALA will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.
The Revenue is expected to grow by 4.83% on average over the next years.
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
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
The Price/Earnings ratio is 19.09, which indicates a rather expensive current valuation of ALA.
ALA's Price/Earnings ratio is a bit cheaper when compared to the industry. ALA is cheaper than 66.67% of the companies in the same industry.
ALA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.94 indicates a rather expensive valuation of ALA.
ALA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ALA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.94 |
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.
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 | 3280.55 | ||
| EV/EBITDA | 12.89 |
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)5.85
PEG (5Y)1.44
EPS Next 2Y3.85%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
ALA has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.13, 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 2.00, ALA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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 3Y7.01%
TSX:ALA (1/2/2026, 7:00:00 PM)
42.18
+0.33 (+0.79%)
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 Cap13.12B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts76
Price Target47.57 (12.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)-0.26%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.94 | ||
| P/S | 1.04 | ||
| P/FCF | 3280.55 | ||
| P/OCF | 8.55 | ||
| P/B | 1.54 | ||
| P/tB | 4.55 | ||
| EV/EBITDA | 12.89 |
EPS(TTM)2.21
EY5.24%
EPS(NY)2.35
Fwd EY5.57%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)4.93
OCFY11.69%
SpS40.73
BVpS27.37
TBVpS9.28
PEG (NY)5.85
PEG (5Y)1.44
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
WACC5.97%
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 Y3.27%
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 19.09 and the Price/Book (PB) ratio is 1.54.
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%.