ALTAGAS LTD (ALA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:ALA • CA0213611001
42.19 CAD
-0.02 (-0.05%)
Last: Feb 9, 2026, 07:00 PM
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 is still in line with the averages on profitability rating, there are concerns on its financial health. ALA is valied quite expensively at the moment, while it does show a decent growth rate. Finally ALA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ALA had positive earnings in the past year.
- ALA had a positive operating cash flow in the past year.
- In the past 5 years ALA has always been profitable.
- ALA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALA has a Return On Assets of 2.87%. This is amongst the best in the industry. ALA outperforms 83.33% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ALA is significantly below the industry average of 10.80%.
- The 3 year average ROIC (3.44%) for ALA is below the current ROIC(4.37%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 5.88%, ALA belongs to the top 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 Operating Margin (10.21%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ALA has grown nicely.
- Looking at the Gross Margin, with a value of 28.43%, 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 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.
- ALA has more shares outstanding than it did 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 1.07, we must say that ALA is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ALA (1.07) is better 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 Debt to FCF ratio (2558.25) which is comparable to the rest of the industry.
- ALA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- ALA's Debt to Equity ratio of 1.15 is in line compared 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/WACC0.72
WACC6.09%
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 Current ratio of 0.88. This is in the better half of the industry: ALA outperforms 66.67% of its industry peers.
- 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.
- 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
- ALA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.84%.
- 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
- The Earnings Per Share is expected to grow by 6.90% on average over the next years.
- Based on estimates for the next years, ALA will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y3.27%
EPS Next 2Y3.65%
EPS Next 3Y7.6%
EPS Next 5Y6.9%
Revenue Next Year1.92%
Revenue Next 2Y3.98%
Revenue Next 3Y4.83%
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
- ALA is valuated rather expensively with a Price/Earnings ratio of 19.09.
- Based on the Price/Earnings ratio, ALA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.06, ALA is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 18.01, the valuation of ALA can be described as rather expensive.
- ALA's Price/Forward Earnings is on the same level as the industry average.
- ALA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 18.01 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ALA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3281.33 | ||
| EV/EBITDA | 12.95 |
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 2Y3.65%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
- ALA has a Yearly Dividend Yield of 3.10%.
- ALA's Dividend Yield is rather good when compared to the industry average which is at 2.05. ALA pays more dividend than 83.33% of the companies in the same industry.
- ALA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
- ALA pays out 52.48% 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.
DP52.48%
EPS Next 2Y3.65%
EPS Next 3Y7.6%
TSX:ALA (2/9/2026, 7:00:00 PM)
42.19
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)03-06 2026-03-06/amc
Inst Owners36.05%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap13.13B
Revenue(TTM)12.67B
Net Income(TTM)745.00M
Analysts77.14
Price Target47.66 (12.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend1.25
Dividend Growth(5Y)0.74%
DP52.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-16 2026-03-16 (0.334)
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)0.19%
PT rev (3m)5.72%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 18.01 | ||
| P/S | 1.04 | ||
| P/FCF | 3281.33 | ||
| P/OCF | 8.56 | ||
| P/B | 1.54 | ||
| P/tB | 4.55 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)2.21
EY5.24%
EPS(NY)2.34
Fwd EY5.55%
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
WACC6.09%
ROIC/WACC0.72
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 2Y3.65%
EPS Next 3Y7.6%
EPS Next 5Y6.9%
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 5Y12.32%
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.
Can you provide the valuation status for ALTAGAS LTD?
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 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%.