NOT FOR DISTRIBUTION
Header cover image

Market Cap

CA$6.0b

Last Updated

2021/04/11 00:18 UTC

Data Sources

Company Financials +

Executive Summary

AltaGas Ltd. operates as a diversified energy infrastructure company in North America. More Details


Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has AltaGas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ALA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

ALA

1.6%

CA Gas Utilities

1.0%

CA Market


1 Year Return

43.6%

ALA

7.8%

CA Gas Utilities

39.2%

CA Market

Return vs Industry: ALA exceeded the Canadian Gas Utilities industry which returned 7.8% over the past year.

Return vs Market: ALA exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

ALAIndustryMarket
7 Day1.0%1.6%1.0%
30 Day2.9%4.0%1.4%
90 Day12.8%14.4%7.5%
1 Year51.8%43.6%11.8%7.8%44.0%39.2%
3 Year4.8%-13.6%13.8%2.4%32.2%19.6%
5 Year-6.4%-32.9%28.1%7.1%59.4%35.3%

Long-Term Price Volatility Vs. Market

How volatile is AltaGas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AltaGas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALA (CA$21.4) is trading below our estimate of fair value (CA$63.82)

Significantly Below Fair Value: ALA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALA is good value based on its PE Ratio (12.3x) compared to the XN Gas Utilities industry average (18x).

PE vs Market: ALA is good value based on its PE Ratio (12.3x) compared to the Canadian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: ALA is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ALA is good value based on its PB Ratio (1x) compared to the XN Gas Utilities industry average (1.9x).


Future Growth

How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALA's forecast earnings growth (3.8% per year) is above the savings rate (1.5%).

Earnings vs Market: ALA's earnings (3.8% per year) are forecast to grow slower than the Canadian market (21.8% per year).

High Growth Earnings: ALA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALA's revenue (2.5% per year) is forecast to grow slower than the Canadian market (7.2% per year).

High Growth Revenue: ALA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALA's Return on Equity is forecast to be low in 3 years time (7.4%).


Past Performance

How has AltaGas performed over the past 5 years?

38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALA has a large one-off gain of CA$136.0M impacting its December 31 2020 financial results.

Growing Profit Margin: ALA's current net profit margins (8.7%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: ALA's earnings have grown significantly by 38.6% per year over the past 5 years.

Accelerating Growth: ALA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALA had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the Gas Utilities industry average (9.2%).


Return on Equity

High ROE: ALA's Return on Equity (7.5%) is considered low.


Financial Health

How is AltaGas's financial position?


Financial Position Analysis

Short Term Liabilities: ALA's short term assets (CA$2.5B) do not cover its short term liabilities (CA$2.6B).

Long Term Liabilities: ALA's short term assets (CA$2.5B) do not cover its long term liabilities (CA$11.3B).


Debt to Equity History and Analysis

Debt Level: ALA's debt to equity ratio (107.4%) is considered high.

Reducing Debt: ALA's debt to equity ratio has increased from 98.6% to 107.4% over the past 5 years.

Debt Coverage: ALA's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: ALA's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is AltaGas's current dividend yield, its reliability and sustainability?

4.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALA's dividend (4.67%) is higher than the bottom 25% of dividend payers in the Canadian market (1.49%).

High Dividend: ALA's dividend (4.67%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).


Stability and Growth of Payments

Stable Dividend: ALA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ALA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), ALA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALA's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Randy Crawford (57 yo)

2.33yrs

Tenure

CA$9,189,392

Compensation

Mr. Randall L. Crawford, also known as Randy, has been the Chief Executive Officer, President and Non-Independent Director at AltaGas Ltd. since December 10, 2018. Mr. Crawford has been a Director of WGL H...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD7.32M) is above average for companies of similar size in the Canadian market ($USD3.00M).

Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALA's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ALA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AltaGas Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AltaGas Ltd.
  • Ticker: ALA
  • Exchange: TSX
  • Founded: 1994
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: CA$5.982b
  • Shares outstanding: 279.54m
  • Website: https://www.altagas.ca

Number of Employees


Location

  • AltaGas Ltd.
  • 355 - 4th Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 0J1
  • Canada

Listings


Biography

AltaGas Ltd. operates as a diversified energy infrastructure company in North America. The company operates through two segments, Utilities and Midstream. The Utilities segment owns and operates regulated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 00:18
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.