ALLIANT ENERGY CORP (LNT) Stock Fundamental Analysis
NASDAQ:LNT - Nasdaq - US0188021085 - Common Stock - Currency: USD
LNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. While LNT is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, LNT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LNT was profitable.
In the past year LNT had a positive cash flow from operations.
In the past 5 years LNT has always been profitable.
In the past 5 years LNT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LNT (3.26%) is better than 63.83% of its industry peers.
LNT has a Return On Equity of 10.50%. This is comparable to the rest of the industry: LNT outperforms 59.57% of its industry peers.
LNT has a Return On Invested Capital of 3.75%. This is in the lower half of the industry: LNT underperforms 70.21% of its industry peers.
LNT had an Average Return On Invested Capital over the past 3 years of 3.82%. This is significantly below the industry average of 38.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 10.5% | ||
| ROIC | 3.75% |
ROA(3y)3.25%
ROA(5y)3.35%
ROE(3y)10.39%
ROE(5y)10.52%
ROIC(3y)3.82%
ROIC(5y)3.72%
1.3 Margins
The Profit Margin of LNT (18.26%) is better than 89.36% of its industry peers.
LNT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.05%, LNT is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
In the last couple of years the Operating Margin of LNT has grown nicely.
The Gross Margin of LNT (93.94%) is better than 100.00% of its industry peers.
LNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.05% | ||
| PM (TTM) | 18.26% | ||
| GM | 93.94% |
OM growth 3Y3.12%
OM growth 5Y2.19%
PM growth 3Y-1.18%
PM growth 5Y2.56%
GM growth 3Y0.5%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LNT is destroying value.
The number of shares outstanding for LNT has been increased compared to 1 year ago.
LNT has more shares outstanding than it did 5 years ago.
LNT has a worse debt/assets ratio than last year.
2.2 Solvency
LNT has an Altman-Z score of 1.07. This is a bad value and indicates that LNT is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.07, LNT is doing good in the industry, outperforming 65.96% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that LNT has dependencies on debt financing.
With a Debt to Equity ratio value of 1.31, LNT perfoms like the industry average, outperforming 55.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.44
WACC8.47%
2.3 Liquidity
LNT has a Current Ratio of 0.34. This is a bad value and indicates that LNT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.34, LNT is not doing good in the industry: 93.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that LNT may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, LNT is not doing good in the industry: 93.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
LNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.19%, which is quite good.
LNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.62% yearly.
Looking at the last year, LNT shows a small growth in Revenue. The Revenue has grown by 2.44% in the last year.
LNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)12.19%
EPS 3Y3.68%
EPS 5Y4.62%
EPS Q2Q%33.87%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y2.76%
Revenue growth 5Y1.76%
Sales Q2Q%9.41%
3.2 Future
Based on estimates for the next years, LNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.13% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y11.02%
EPS Next 2Y8.96%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue Next Year2.16%
Revenue Next 2Y3.51%
Revenue Next 3Y4.1%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.41, LNT is valued on the expensive side.
65.96% of the companies in the same industry are cheaper than LNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LNT to the average of the S&P500 Index (27.28), we can say LNT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.53, the valuation of LNT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LNT to the average of the S&P500 Index (21.76), we can say LNT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNT is valued a bit more expensive than the industry average as 76.60% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LNT may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)4.2
EPS Next 2Y8.96%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, LNT has a reasonable but not impressive dividend return.
LNT's Dividend Yield is comparable with the industry average which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.42, LNT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
On average, the dividend of LNT grows each year by 6.44%, which is quite nice.
LNT has paid a dividend for at least 10 years, which is a reliable track record.
LNT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.44%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
66.98% of the earnings are spent on dividend by LNT. This is not a sustainable payout ratio.
The dividend of LNT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.98%
EPS Next 2Y8.96%
EPS Next 3Y8.39%
60.76
-0.6 (-0.98%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.39%
Inst Owner Change1.87%
Ins Owners0.11%
Ins Owner Change5.98%
Market Cap15.61B
Analysts73.33
Price Target66.59 (9.6%)
Short Float %2.54%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend1.92
Dividend Growth(5Y)6.44%
DP66.98%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.59%
Min EPS beat(2)-15.65%
Max EPS beat(2)24.83%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-15.65%
Max EPS beat(4)24.83%
EPS beat(8)4
Avg EPS beat(8)1.1%
EPS beat(12)5
Avg EPS beat(12)-0.47%
EPS beat(16)8
Avg EPS beat(16)0.24%
Revenue beat(2)2
Avg Revenue beat(2)12.2%
Min Revenue beat(2)11.06%
Max Revenue beat(2)13.34%
Revenue beat(4)2
Avg Revenue beat(4)5.64%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)13.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)5
Avg Revenue beat(12)1.81%
Revenue beat(16)9
Avg Revenue beat(16)6.8%
PT rev (1m)0.01%
PT rev (3m)2.03%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)-6.36%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.53 | ||
| P/S | 3.83 | ||
| P/FCF | N/A | ||
| P/OCF | 14.07 | ||
| P/B | 2.2 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)3.13
EY5.15%
EPS(NY)3.47
Fwd EY5.71%
FCF(TTM)-3.97
FCFYN/A
OCF(TTM)4.32
OCFY7.11%
SpS15.88
BVpS27.61
TBVpS27.61
PEG (NY)1.76
PEG (5Y)4.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 10.5% | ||
| ROCE | 4.91% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 3.76% | ||
| OM | 24.05% | ||
| PM (TTM) | 18.26% | ||
| GM | 93.94% | ||
| FCFM | N/A |
ROA(3y)3.25%
ROA(5y)3.35%
ROE(3y)10.39%
ROE(5y)10.52%
ROIC(3y)3.82%
ROIC(5y)3.72%
ROICexc(3y)3.83%
ROICexc(5y)3.73%
ROICexgc(3y)3.83%
ROICexgc(5y)3.73%
ROCE(3y)4.97%
ROCE(5y)4.85%
ROICexcg growth 3Y-0.45%
ROICexcg growth 5Y-2.32%
ROICexc growth 3Y-0.45%
ROICexc growth 5Y-2.32%
OM growth 3Y3.12%
OM growth 5Y2.19%
PM growth 3Y-1.18%
PM growth 5Y2.56%
GM growth 3Y0.5%
GM growth 5Y0.1%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 268.01% | ||
| Cap/Sales | 52.17% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 1.07 |
F-Score4
WACC8.47%
ROIC/WACC0.44
Cap/Depr(3y)243.11%
Cap/Depr(5y)220.49%
Cap/Sales(3y)42.54%
Cap/Sales(5y)38.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.19%
EPS 3Y3.68%
EPS 5Y4.62%
EPS Q2Q%33.87%
EPS Next Y11.02%
EPS Next 2Y8.96%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y2.76%
Revenue growth 5Y1.76%
Sales Q2Q%9.41%
Revenue Next Year2.16%
Revenue Next 2Y3.51%
Revenue Next 3Y4.1%
Revenue Next 5Y4.85%
EBIT growth 1Y3.92%
EBIT growth 3Y5.97%
EBIT growth 5Y4%
EBIT Next Year76.54%
EBIT Next 3Y28.71%
EBIT Next 5Y22.08%
FCF growth 1Y5.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y162.18%
OCF growth 3Y26.1%
OCF growth 5Y12.06%