| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
ALA Overview
AltaGas Ltd. operates as a diversified energy infrastructure company in North America.
AltaGas Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$25.20 |
| 52 Week High | CA$15.53 |
| 52 Week Low | CA$26.94 |
| Beta | 1.65 |
| 1 Month Change | -0.94% |
| 3 Month Change | -3.15% |
| 1 Year Change | 50.09% |
| 3 Year Change | 19.26% |
| 5 Year Change | -24.55% |
| Change since IPO | 145.85% |
Recent News & Updates
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...
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
| ALA | CA Gas Utilities | CA Market | |
|---|---|---|---|
| 7D | -0.6% | 0.06% | 1.8% |
| 1Y | 50.1% | 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
| ALA volatility | |
|---|---|
| ALA Beta | 1.65 |
| Industry Beta | 0.74 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 2,984 | Randy Crawford | https://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
| ALA fundamental statistics | |
|---|---|
| Market Cap | CA$7.06b |
| Earnings (TTM) | CA$363.00m |
| Revenue (TTM) | CA$7.75b |
19.4x
P/E Ratio0.9x
P/S RatioIs ALA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ALA income statement (TTM) | |
|---|---|
| Revenue | CA$7.75b |
| Cost of Revenue | CA$5.14b |
| Gross Profit | CA$2.61b |
| Expenses | CA$2.25b |
| Earnings | CA$363.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.30 |
| Gross Margin | 33.68% |
| Net Profit Margin | 4.68% |
| Debt/Equity Ratio | 99.2% |
How did ALA perform over the long term?
See historical performance and comparisonDividends
4.0%
Current Dividend Yield76%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 23:00 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.