Executive Summary
AltaGas Ltd. operates as a diversified energy infrastructure company in North America. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.6% per year for the next 3 years
+ 1 more risk
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
| ALA | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | 3.0% | -0.5% |
| 30 Day | 7.3% | -2.6% | 2.9% |
| 90 Day | 21.9% | 5.0% | 12.2% |
| 1 Year | 6.4%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
3 days ago | Simply Wall St
AltaGas Ltd.'s (TSE:ALA) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?3 weeks ago | Simply Wall St
AltaGas (TSE:ALA) Shareholders Received A Total Return Of Negative 18% In The Last Five Years2 months ago | Simply Wall St
Here's Why AltaGas (TSE:ALA) Is Weighed Down By Its Debt LoadValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.08yrs | CA$7.84m | 0.025% CA$ 1.4m | |
| Executive VP & CFO | 1.58yrs | CA$3.05m | 0.017% CA$ 933.0k | |
| Executive VP & Chief Legal Officer | 5.67yrs | CA$2.28m | 0.0022% CA$ 122.7k | |
| Executive VP & President of Midstream | 4.08yrs | CA$2.33m | 0.0053% CA$ 296.4k | |
| Executive VP & Chief Administrative Officer | 4.08yrs | CA$1.76m | 0.0027% CA$ 150.2k | |
| Senior Director of Investor Relations | no data | no data | no data | |
| Senior Vice President of Organizational Development | 4.08yrs | CA$991.41k | no data | |
| Senior Vice President of Commercial & Business Operations | no data | CA$722.72k | no data | |
| Executive VP of Government & Regulatory Affairs - ASUS and EVP of Strategy & Public Affairs - WG | no data | CA$2.14m | no data | |
| Senior Vice President of Commercial | no data | no data | no data | |
| Executive Vice President of Commercial Strategy & Business Development | 2.08yrs | no data | no data | |
| Senior Vice President of Corporate Environmental Health & Safety | no data | no data | no data |
4.1yrs
Average Tenure
50yo
Average Age
Experienced Management: ALA's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.08yrs | CA$7.84m | 0.025% CA$ 1.4m | |
| Independent Director | 15.83yrs | CA$235.11k | 0.0061% CA$ 340.2k | |
| Independent Director | 15.83yrs | CA$222.11k | 0.017% CA$ 945.4k | |
| Non-Independent Director | 2.5yrs | CA$239.17k | 0.016% CA$ 882.0k | |
| Independent Director | 26.75yrs | CA$281.17k | 0.57% CA$ 31.9m | |
| Independent Director | 1yr | no data | 0.0022% CA$ 125.5k | |
| Independent Chairman of the Board | 1.75yrs | CA$320.58k | 0.0061% CA$ 340.7k | |
| Independent Director | 5.17yrs | CA$224.23k | 0.0081% CA$ 456.7k | |
| Independent Director | 2.5yrs | CA$218.79k | 0.0022% CA$ 120.5k | |
| Independent Director | 1yr | no data | no data | |
| Independent Director | 5.17yrs | CA$216.18k | 0.0027% CA$ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALA | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jul 1999 |
| AQ3 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 1999 |
| ATGF.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jul 1999 |
| ALA.PRU | TSX (The Toronto Stock Exchange) | PFD SHS SER C | CA | USD | Jun 2012 | |
| ALTG.F | OTCPK (Pink Sheets LLC) | PFD SHS SER C | US | USD | Jun 2012 | |
| ALA.PRE | TSX (The Toronto Stock Exchange) | RED PFDSHS SER E | CA | CAD | Dec 2013 | |
| ALA.PRG | TSX (The Toronto Stock Exchange) | PFD SHS SER G | CA | CAD | Jul 2014 | |
| ATLA.F | OTCPK (Pink Sheets LLC) | PFD SER K 5% | US | CAD | Feb 2017 | |
| ALA.PRH | TSX (The Toronto Stock Exchange) | FRN CUM PFD H | CA | CAD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:14 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.