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ALA

AltaGasTSX:ALA Stock Report

Market Cap

CA$7.1b

7D

-0.6%

1Y

50.1%

Updated

27 Sep, 2021

Data

Company Financials +
ALA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends3/6

ALA Overview

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

AltaGas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AltaGas
Historical stock prices
Current Share PriceCA$25.20
52 Week HighCA$15.53
52 Week LowCA$26.94
Beta1.65
1 Month Change-0.94%
3 Month Change-3.15%
1 Year Change50.09%
3 Year Change19.26%
5 Year Change-24.55%
Change since IPO145.85%

Recent News & Updates

Sep 13
AltaGas (TSE:ALA) Is Due To Pay A Dividend Of CA$0.083

AltaGas (TSE:ALA) Is Due To Pay A Dividend Of CA$0.083

AltaGas Ltd.'s ( TSE:ALA ) investors are due to receive a payment of CA$0.083 per share on 15th of October. This makes...

Aug 04
Analysts Are Betting On AltaGas Ltd. (TSE:ALA) With A Big Upgrade This Week

Analysts Are Betting On AltaGas Ltd. (TSE:ALA) With A Big Upgrade This Week

AltaGas Ltd. ( TSE:ALA ) shareholders will have a reason to smile today, with the analysts making substantial upgrades...

Shareholder Returns

ALACA Gas UtilitiesCA Market
7D-0.6%0.06%1.8%
1Y50.1%14.2%29.7%

Return vs Industry: ALA exceeded the Canadian Gas Utilities industry which returned 14.2% over the past year.

Return vs Market: ALA exceeded the Canadian Market which returned 29.7% over the past year.

Price Volatility

Is ALA's price volatile compared to industry and market?
ALA volatility
ALA Beta1.65
Industry Beta0.74
Market Beta1

Stable Share Price: ALA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ALA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19942,984Randy Crawfordhttps://www.altagas.ca

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 natural gas distribution utilities in Michigan, Alaska, the District of Columbia, Maryland, and Virginia; and two regulated natural gas storage utilities in the United States serving approximately 1.7 million customers.

AltaGas Fundamentals Summary

How do AltaGas's earnings and revenue compare to its market cap?
ALA fundamental statistics
Market CapCA$7.06b
Earnings (TTM)CA$363.00m
Revenue (TTM)CA$7.75b

19.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALA income statement (TTM)
RevenueCA$7.75b
Cost of RevenueCA$5.14b
Gross ProfitCA$2.61b
ExpensesCA$2.25b
EarningsCA$363.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.30
Gross Margin33.68%
Net Profit Margin4.68%
Debt/Equity Ratio99.2%

How did ALA perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

76%

Payout Ratio

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$25.2) is trading below our estimate of fair value (CA$79.44)

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


Price To Earnings Ratio

PE vs Industry: ALA is poor value based on its PE Ratio (19.4x) compared to the North American Gas Utilities industry average (16.8x).

PE vs Market: ALA is poor value based on its PE Ratio (19.4x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: ALA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ALA is good value based on its PB Ratio (1.2x) compared to the XN Gas Utilities industry average (1.5x).


Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALA's forecast earnings growth (9.7% per year) is above the savings rate (1.5%).

Earnings vs Market: ALA's earnings (9.7% per year) are forecast to grow slower than the Canadian market (12% per year).

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

Revenue vs Market: ALA's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: ALA's revenue is forecast to decline over the next 3 years (-0.7% 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 (8.3%).


Past Performance

How has AltaGas performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALA has high quality earnings.

Growing Profit Margin: ALA's current net profit margins (4.7%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: ALA's earnings have grown significantly by 34.3% 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 (-9.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (25.6%).


Return on Equity

High ROE: ALA's Return on Equity (6%) is considered low.


Financial Health

How is AltaGas's financial position?


Financial Position Analysis

Short Term Liabilities: ALA's short term assets (CA$2.0B) exceed its short term liabilities (CA$1.9B).

Long Term Liabilities: ALA's short term assets (CA$2.0B) do not cover its long term liabilities (CA$10.7B).


Debt to Equity History and Analysis

Debt Level: ALA's debt to equity ratio (99.2%) is considered high.

Reducing Debt: ALA's debt to equity ratio has increased from 83.5% to 99.2% over the past 5 years.

Debt Coverage: ALA's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: ALA's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

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

3.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALA's dividend (3.97%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: ALA's dividend (3.97%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


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: At its current payout ratio (75.7%), ALA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALA's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Randy Crawford (58 yo)

2.75yrs

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 ($USD7.27M) is above average for companies of similar size in the Canadian market ($USD3.59M).

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 (3.8 years average tenure).


Board Members

Experienced Board: ALA's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALA 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 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$7.060b
  • Shares outstanding: 280.16m
  • Website: https://www.altagas.ca

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:00
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.