TSX:ALA
TSX:ALAGas Utilities

Is Low ROE Despite High Leverage Altering the Investment Case for AltaGas (TSX:ALA)?

AltaGas Ltd. recently reported a return on equity of 6.2%, closely matching the gas utilities industry norm, but this result comes despite a significant reliance on debt, with a debt to equity ratio of 1.03. Although the company’s debt usage is high, it has not translated into elevated returns, raising questions about the effectiveness of its capital structure and use of leverage. We’ll explore how persistent concerns around AltaGas’s low return on equity despite high leverage may influence...