AltaGas Ltd. operates as a diversified energy infrastructure company in North America. More Details
Undervalued second-rate dividend payer.
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.
7 Day Return
CA Gas Utilities
1 Year Return
CA Gas Utilities
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.
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
2 weeks ago | Simply Wall StIf You Had Bought AltaGas (TSE:ALA) Shares A Year Ago You'd Have Earned 128% Returns
1 month ago | Simply Wall StIs AltaGas Ltd. (TSE:ALA) A Smart Pick For Income Investors?
1 month ago | Simply Wall StAltaGas (TSE:ALA) Has A Somewhat Strained Balance Sheet
Is AltaGas undervalued compared to its fair value and its price relative to the market?
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).
How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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%).
How has AltaGas performed over the past 5 years?
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.
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$11.3B).
Debt to Equity History and Analysis
Debt Level: ALA's debt to equity ratio (107.4%) is considered high.
Reducing Debt: ALA's debt to equity ratio has increased from 98.6% to 107.4% over the past 5 years.
Debt Coverage: ALA's debt is not well covered by operating cash flow (9.4%).
Interest Coverage: ALA's interest payments on its debt are not well covered by EBIT (2.9x coverage).
What is AltaGas's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALA's dividend (4.67%) is higher than the bottom 25% of dividend payers in the Canadian market (1.49%).
High Dividend: ALA's dividend (4.67%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).
Stability and Growth of Payments
Stable Dividend: ALA's dividend payments have been volatile in the past 10 years.
Growing Dividend: ALA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.4%), ALA's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALA's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Randy Crawford (57 yo)
Mr. Randall L. Crawford, also known as Randy, has been the Chief Executive Officer, President and Non-Independent Director at AltaGas Ltd. since December 10, 2018. Mr. Crawford has been a Director of WGL H...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($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.
Experienced Management: ALA's management team is considered experienced (3.3 years average tenure).
Experienced Board: ALA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AltaGas Ltd.'s company bio, employee growth, exchange listings and data sources
- 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
- AltaGas Ltd.
- 355 - 4th Avenue SW
- Suite 1700
- T2P 0J1
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/11 00:18|
|End of Day Share Price||2021/04/09 00:00|
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.