66.26 USD
-0.93 (-1.38%)
66.04 USD
-0.22 (-0.33%)
We assign a fundamental rating of 4 out of 10 to LNT. LNT was compared to 46 industry peers in the Electric Utilities industry. While LNT belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, LNT is valued expensive at the moment. LNT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- LNT had positive earnings in the past year.
- In the past year LNT had a positive cash flow from operations.
- Each year in the past 5 years LNT has been profitable.
- LNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LNT (3.32%) is better than 76.09% of its industry peers.
- Looking at the Return On Equity, with a value of 11.19%, LNT is in line with its industry, outperforming 58.70% of the companies in the same industry.
- With a Return On Invested Capital value of 3.67%, LNT is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for LNT is in line with the industry average of 4.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 11.19% | ||
| ROIC | 3.67% |
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
- Looking at the Profit Margin, with a value of 19.13%, LNT belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
- LNT's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 24.56%, LNT is doing good in the industry, outperforming 65.22% of the companies in the same industry.
- LNT's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 94.13%, LNT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- LNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.56% | ||
| PM (TTM) | 19.13% | ||
| GM | 94.13% |
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.
- Compared to 1 year ago, LNT has more shares outstanding
- Compared to 5 years ago, LNT has more shares outstanding
- Compared to 1 year ago, LNT has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.13, we must say that LNT is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.13, LNT is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- A Debt/Equity ratio of 1.48 is on the high side and indicates that LNT has dependencies on debt financing.
- LNT has a Debt to Equity ratio (1.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.54
WACC6.83%
2.3 Liquidity
- LNT has a Current Ratio of 0.83. 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 0.83, LNT perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
- LNT has a Quick Ratio of 0.83. 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 Quick ratio value of 0.70, LNT perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.83% over the past year.
- Measured over the past 5 years, LNT shows a small growth in Earnings Per Share. The EPS has been growing by 4.62% on average per year.
- LNT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
- LNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)13.83%
EPS 3Y3.68%
EPS 5Y4.62%
EPS Q2Q%-2.61%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y2.76%
Revenue growth 5Y1.76%
Sales Q2Q%11.93%
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 8.53% on average per year.
- Based on estimates for the next years, LNT will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y11.04%
EPS Next 2Y8.84%
EPS Next 3Y8.6%
EPS Next 5Y8.53%
Revenue Next Year-0.47%
Revenue Next 2Y2.13%
Revenue Next 3Y3.32%
Revenue Next 5Y5.88%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- LNT is valuated rather expensively with a Price/Earnings ratio of 20.64.
- Compared to the rest of the industry, the Price/Earnings ratio of LNT indicates a slightly more expensive valuation: LNT is more expensive than 60.87% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LNT to the average of the S&P500 Index (28.60), we can say LNT is valued slightly cheaper.
- LNT is valuated rather expensively with a Price/Forward Earnings ratio of 19.16.
- Based on the Price/Forward Earnings ratio, LNT is valued a bit more expensive than 63.04% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, LNT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
- 76.09% of the companies in the same industry are cheaper than LNT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNT does not grow enough to justify the current Price/Earnings ratio.
- LNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)4.47
EPS Next 2Y8.84%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
- LNT has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
- LNT's Dividend Yield is comparable with the industry average which is at 2.90.
- Compared to an average S&P500 Dividend Yield of 1.82, LNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
- The dividend of LNT is nicely growing with an annual growth rate of 6.44%!
- LNT has been paying a dividend for at least 10 years, so it has a reliable track record.
- LNT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.44%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- LNT pays out 62.84% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of LNT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.84%
EPS Next 2Y8.84%
EPS Next 3Y8.6%
ALLIANT ENERGY CORP / LNT FAQ
What is the ChartMill fundamental rating of ALLIANT ENERGY CORP (LNT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to LNT.
What is the valuation status of ALLIANT ENERGY CORP (LNT) stock?
ChartMill assigns a valuation rating of 2 / 10 to ALLIANT ENERGY CORP (LNT). This can be considered as Overvalued.
Can you provide the profitability details for ALLIANT ENERGY CORP?
ALLIANT ENERGY CORP (LNT) has a profitability rating of 7 / 10.
What is the financial health of ALLIANT ENERGY CORP (LNT) stock?
The financial health rating of ALLIANT ENERGY CORP (LNT) is 1 / 10.
What is the expected EPS growth for ALLIANT ENERGY CORP (LNT) stock?
The Earnings per Share (EPS) of ALLIANT ENERGY CORP (LNT) is expected to grow by 11.04% in the next year.