Executive Summary
AltaGas Ltd. operates as a diversified energy infrastructure company in North America. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued second-rate 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 (3%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
ALA
1.6%
CA Gas Utilities
1.0%
CA Market
1 Year Return
43.6%
ALA
7.8%
CA Gas Utilities
39.2%
CA Market
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.
Shareholder returns
| ALA | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 1.6% | 1.0% |
| 30 Day | 2.9% | 4.0% | 1.4% |
| 90 Day | 12.8% | 14.4% | 7.5% |
| 1 Year | 51.8%43.6% | 11.8%7.8% | 44.0%39.2% |
| 3 Year | 4.8%-13.6% | 13.8%2.4% | 32.2%19.6% |
| 5 Year | -6.4%-32.9% | 28.1%7.1% | 59.4%35.3% |
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 St
If You Had Bought AltaGas (TSE:ALA) Shares A Year Ago You'd Have Earned 128% Returns1 month ago | Simply Wall St
Is AltaGas Ltd. (TSE:ALA) A Smart Pick For Income Investors?1 month ago | Simply Wall St
AltaGas (TSE:ALA) Has A Somewhat Strained Balance SheetValuation
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$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).
Future Growth
How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
3.8%
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%).
Past Performance
How has AltaGas performed over the past 5 years?
38.6%
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.
Financial Health
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).
Balance Sheet
Dividend
What is AltaGas's current dividend yield, its reliability and sustainability?
4.67%
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).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Randy Crawford (57 yo)
2.33yrs
Tenure
CA$9,189,392
Compensation
Mr. Randall L. Crawford, also known as Randy, has been the Chief Executive Officer, President and Non-Independent Director at AltaGas Ltd. since December 10, 2018. Mr. Crawford has been a Director of WGL H...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD7.32M) 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.
Leadership Team
Experienced Management: ALA's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: ALA's board of directors are not considered experienced ( 2.8 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: Insufficient data to determine if 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$5.982b
- Shares outstanding: 279.54m
- Website: https://www.altagas.ca
Number of Employees
Location
- AltaGas Ltd.
- 355 - 4th Avenue SW
- Suite 1700
- Calgary
- Alberta
- T2P 0J1
- Canada
Listings
Biography
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 |
| Earnings | 2020/12/31 |
| 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.