TSX:ALA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value average 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 has decreased from 9% to 3% over the past year.


Market Performance


7 Day Return

5.6%

ALA

3.0%

CA Gas Utilities

-0.5%

CA Market


1 Year Return

0.3%

ALA

-17.4%

CA Gas Utilities

1.6%

CA Market

Return vs Industry: ALA exceeded the Canadian Gas Utilities industry which returned -17.4% over the past year.

Return vs Market: ALA underperformed the Canadian Market which returned 1.7% over the past year.


Shareholder returns

ALAIndustryMarket
7 Day5.6%3.0%-0.5%
30 Day7.3%-2.6%2.9%
90 Day21.9%5.0%12.2%
1 Year6.4%0.3%-14.1%-17.4%5.3%1.6%
3 Year-15.5%-30.9%0.4%-9.9%13.1%2.3%
5 Year-11.2%-36.1%29.8%8.2%66.1%40.5%

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$20.05) is trading below our estimate of fair value (CA$70.41)

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 (16.8x) compared to the XN Gas Utilities industry average (18.4x).

PE vs Market: ALA is poor value based on its PE Ratio (16.8x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: ALA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALA is good value based on its PB Ratio (0.9x) compared to the XN Gas Utilities industry average (1.7x).


Next Steps

Future Growth

How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALA's earnings are forecast to decline over the next 3 years (-6.6% per year).

Earnings vs Market: ALA's earnings are forecast to decline over the next 3 years (-6.6% per year).

High Growth Earnings: ALA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALA's revenue (5.9% per year) is forecast to grow slower than the Canadian market (7.9% per year).

High Growth Revenue: ALA's revenue (5.9% 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 (7.1%).


Next Steps

Past Performance

How has AltaGas performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALA has a large one-off gain of CA$666.9M impacting its September 30 2020 financial results.

Growing Profit Margin: ALA's current net profit margins (6.1%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: ALA's earnings have grown significantly by 36.4% 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 (-68%) over the past year, making it difficult to compare to the Gas Utilities industry average (14.7%).


Return on Equity

High ROE: ALA's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is AltaGas's financial position?


Financial Position Analysis

Short Term Liabilities: ALA's short term assets (CA$1.6B) do not cover its short term liabilities (CA$2.1B).

Long Term Liabilities: ALA's short term assets (CA$1.6B) do not cover its long term liabilities (CA$9.9B).


Debt to Equity History and Analysis

Debt Level: ALA's debt to equity ratio (91.5%) is considered high.

Reducing Debt: ALA's debt to equity ratio has increased from 84.3% to 91.5% over the past 5 years.

Debt Coverage: ALA's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: ALA's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

6.30%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ALA's dividend (6.3%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: ALA's dividend (6.3%) is in the top 25% of dividend payers in the Canadian market (4.99%)


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 (80.4%), 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 (53.2% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Randy Crawford (57 yo)

2.08yrs

Tenure

CA$7,841,594

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD6.16M) is above average for companies of similar size in the Canadian market ($USD2.98M).

Compensation vs Earnings: Randy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randall Crawford
President2.08yrsCA$7.84m0.025%
CA$ 1.4m
D. Harbilas
Executive VP & CFO1.58yrsCA$3.05m0.017%
CA$ 933.0k
Bradley Grant
Executive VP & Chief Legal Officer5.67yrsCA$2.28m0.0022%
CA$ 122.7k
Randy Toone
Executive VP & President of Midstream4.08yrsCA$2.33m0.0053%
CA$ 296.4k
Corine Renne Bushfield
Executive VP & Chief Administrative Officer4.08yrsCA$1.76m0.0027%
CA$ 150.2k
Jess Nieukerk
Senior Director of Investor Relationsno datano datano data
Kent Stout
Senior Vice President of Organizational Development4.08yrsCA$991.41kno data
Joy Thakur
Senior Vice President of Commercial & Business Operationsno dataCA$722.72kno data
John O'Brien
Executive VP of Government & Regulatory Affairs - ASUS and EVP of Strategy & Public Affairs - WGno dataCA$2.14mno data
James Shelford
Senior Vice President of Commercialno datano datano data
Fredrick Dalena
Executive Vice President of Commercial Strategy & Business Development2.08yrsno datano data
David Anderson
Senior Vice President of Corporate Environmental Health & Safetyno datano datano data

4.1yrs

Average Tenure

50yo

Average Age

Experienced Management: ALA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Crawford
President2.08yrsCA$7.84m0.025%
CA$ 1.4m
Robert Hodgins
Independent Director15.83yrsCA$235.11k0.0061%
CA$ 340.2k
Allan Edgeworth
Independent Director15.83yrsCA$222.11k0.017%
CA$ 945.4k
Terry McCallister
Non-Independent Director2.5yrsCA$239.17k0.016%
CA$ 882.0k
David Cornhill
Independent Director26.75yrsCA$281.17k0.57%
CA$ 31.9m
Nancy Tower
Independent Director1yrno data0.0022%
CA$ 125.5k
Pentti Karkkainen
Independent Chairman of the Board1.75yrsCA$320.58k0.0061%
CA$ 340.7k
Phillip Knoll
Independent Director5.17yrsCA$224.23k0.0081%
CA$ 456.7k
Cynthia Johnston
Independent Director2.5yrsCA$218.79k0.0022%
CA$ 120.5k
Linda Sullivan
Independent Director1yrno datano data
Victoria Calvert
Independent Director5.17yrsCA$216.18k0.0027%
CA$ 153.0k

2.5yrs

Average Tenure

65yo

Average Age

Experienced Board: ALA's board of directors are not considered experienced ( 2.5 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: 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 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$5.604b
  • Shares outstanding: 279.49m
  • Website: https://www.altagas.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALATSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1999
AQ3DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1999
ATGF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1999
ALA.PRUTSX (The Toronto Stock Exchange)PFD SHS SER CCAUSDJun 2012
ALTG.FOTCPK (Pink Sheets LLC)PFD SHS SER CUSUSDJun 2012
ALA.PRETSX (The Toronto Stock Exchange)RED PFDSHS SER ECACADDec 2013
ALA.PRGTSX (The Toronto Stock Exchange)PFD SHS SER GCACADJul 2014
ATLA.FOTCPK (Pink Sheets LLC)PFD SER K 5%USCADFeb 2017
ALA.PRHTSX (The Toronto Stock Exchange)FRN CUM PFD HCACADOct 2019

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 00:14
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.