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ALA

AltaGas TSX:ALA Stock Report

Last Price

CA$28.00

Market Cap

CA$7.9b

7D

-1.2%

1Y

10.3%

Updated

24 Sep, 2022

Data

Company Financials +
ALA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends2/6

ALA Stock Overview

AltaGas Ltd. operates as an 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$28.00
52 Week HighCA$31.16
52 Week LowCA$24.16
Beta1.51
1 Month Change-7.25%
3 Month Change4.32%
1 Year Change10.28%
3 Year Change45.30%
5 Year Change-2.57%
Change since IPO173.17%

Recent News & Updates

Aug 25
Is There Now An Opportunity In AltaGas Ltd. (TSE:ALA)?

Is There Now An Opportunity In AltaGas Ltd. (TSE:ALA)?

While AltaGas Ltd. ( TSE:ALA ) might not be the most widely known stock at the moment, it saw a decent share price...

Jul 09
AltaGas (TSE:ALA) Use Of Debt Could Be Considered Risky

AltaGas (TSE:ALA) Use Of Debt Could Be Considered Risky

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ALACA Gas UtilitiesCA Market
7D-1.2%-3.4%-4.8%
1Y10.3%5.8%-7.2%

Return vs Industry: ALA exceeded the Canadian Gas Utilities industry which returned 5.8% over the past year.

Return vs Market: ALA exceeded the Canadian Market which returned -7.2% over the past year.

Price Volatility

Is ALA's price volatile compared to industry and market?
ALA volatility
ALA Average Weekly Movement2.5%
Gas Utilities Industry Average Movement3.3%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

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.

About the Company

FoundedEmployeesCEOWebsite
19942,926Randy Crawfordhttps://www.altagas.ca

AltaGas Ltd. operates as an energy infrastructure company in North America. The company operates through Utilities and Midstream segments. The Utilities segment owns and operates rate-regulated natural gas distribution and storage utilities in Maryland, Virginia, Delaware, Pennsylvania, Ohio, and the District of Columbia 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$7.88b
Earnings (TTM)CA$262.00m
Revenue (TTM)CA$12.61b

30.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALA income statement (TTM)
RevenueCA$12.61b
Cost of RevenueCA$9.68b
Gross ProfitCA$2.93b
Other ExpensesCA$2.67b
EarningsCA$262.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.93
Gross Margin23.24%
Net Profit Margin2.08%
Debt/Equity Ratio101.5%

How did ALA perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

110%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ALA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALA?

Other financial metrics that can be useful for relative valuation.

ALA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA11.8x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does ALA's PE Ratio compare to its peers?

ALA PE Ratio vs Peers
The above table shows the PE ratio for ALA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average43.6x
SPB Superior Plus
67.8x69.8%CA$2.0b
AQN Algonquin Power & Utilities
43.2x25.9%CA$11.5b
NPI Northland Power
18.2x-17.9%CA$10.1b
CPX Capital Power
45.2x26.3%CA$5.9b
ALA AltaGas
30.1x9.8%CA$7.9b

Price-To-Earnings vs Peers: ALA is good value based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (43.6x).


Price to Earnings Ratio vs Industry

How does ALA's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

Price-To-Earnings vs Industry: ALA is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the Global Gas Utilities industry average (13.9x)


Price to Earnings Ratio vs Fair Ratio

What is ALA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.1x
Fair PE Ratio31.2x

Price-To-Earnings vs Fair Ratio: ALA is good value based on its Price-To-Earnings Ratio (30.1x) compared to the estimated Fair Price-To-Earnings Ratio (31.2x).


Share Price vs Fair Value

What is the Fair Price of ALA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALA (CA$28) is trading below our estimate of fair value (CA$75.46)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALA's forecast earnings growth (9.8% per year) is above the savings rate (1.6%).

Earnings vs Market: ALA's earnings (9.8% per year) are forecast to grow faster than the Canadian market (7.5% 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 (-5.8% per year).

High Growth Revenue: ALA's revenue is forecast to decline over the next 3 years (-5.8% 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 (8.4%).


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Past Performance

How has AltaGas performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALA has high quality earnings.

Growing Profit Margin: ALA's current net profit margins (2.1%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: ALA's earnings have grown significantly by 26.8% 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 (-27.8%) over the past year, making it difficult to compare to the Gas Utilities industry average (-3.1%).


Return on Equity

High ROE: ALA's Return on Equity (5%) is considered low.


Discover strong past performing companies

Financial Health

How is AltaGas's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALA's short term assets (CA$4.0B) exceed its short term liabilities (CA$3.7B).

Long Term Liabilities: ALA's short term assets (CA$4.0B) do not cover its long term liabilities (CA$10.8B).


Debt to Equity History and Analysis

Debt Level: ALA's net debt to equity ratio (98.6%) is considered high.

Reducing Debt: ALA's debt to equity ratio has increased from 76.2% to 101.5% over the past 5 years.

Debt Coverage: ALA's debt is not well covered by operating cash flow (16%).

Interest Coverage: ALA's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ALA's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: ALA's dividend (3.79%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (110.2%), ALA's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (77.3%), ALA's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Randy Crawford (59 yo)

3.75yrs

Tenure

CA$9,273,826

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 ($USD6.84M) is above average for companies of similar size in the Canadian market ($USD4.70M).

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 (4.8 years average tenure).


Board Members

Experienced Board: ALA's board of directors are considered experienced (4.2 years average tenure).


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

TSX:ALA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Apr 22SellCA$133,730Deborah SteinIndividual4,600CA$29.30

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 27.92% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.05%
RBC Global Asset Management Inc.
17,009,268CA$476.3m-0.01%0.27%
3.43%
The Vanguard Group, Inc.
9,647,775CA$270.1m1.39%no data
2.6%
BMO Asset Management Corp.
7,308,828CA$204.6m2.45%0.09%
1.74%
BlackRock, Inc.
4,894,752CA$137.1m-2.43%no data
1.69%
CIBC Asset Management Inc.
4,757,589CA$133.2m0.19%0.25%
1.64%
Energy Income Partners LLC
4,618,285CA$129.3m3.36%2.01%
1.21%
Dimensional Fund Advisors LP
3,410,024CA$95.5m0.91%0.02%
1.04%
Norges Bank Investment Management
2,929,744CA$82.0m0%0.01%
1.01%
TD Asset Management, Inc.
2,833,777CA$79.3m-1.25%0.06%
0.92%
Industrial Alliance Investment Management Inc.
2,591,705CA$72.6m0%0.72%
0.81%
CI Global Asset Management
2,274,355CA$63.7m-1.82%0.12%
0.77%
FMR LLC
2,159,950CA$60.5m-0.62%no data
0.72%
Cohen & Steers Capital Management, Inc.
2,039,304CA$57.1m0.08%0.08%
0.71%
QV Investors Inc.
1,984,231CA$55.6m0%1.7%
0.56%
David Cornhill
1,589,334CA$44.5m0%no data
0.46%
J.P. Morgan Asset Management, Inc.
1,290,873CA$36.1m-1.65%no data
0.45%
Guardian Capital LP
1,252,850CA$35.1m-4.4%0.58%
0.31%
Northwest & Ethical Investments L.P.
867,504CA$24.3m0%1.44%
0.3%
Randall Crawford
854,449CA$23.9m0%no data
0.29%
Picton Mahoney Asset Management
829,619CA$23.2m0%0.57%
0.26%
AGF Management Limited
727,047CA$20.4m-0.09%0.1%
0.25%
UBS Asset Management
716,162CA$20.1m2.18%no data
0.24%
Desjardins Global Asset Management Inc.
671,503CA$18.8m-0.11%0.16%
0.23%
Geode Capital Management, LLC
655,495CA$18.4m1.28%no data
0.23%
Tortoise Index Solutions, LLC
643,276CA$18.0m0.04%2.27%

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
  • Implied Market Cap: CA$7.877b
  • Shares outstanding: 281.32m
  • Website: https://www.altagas.ca

Number of Employees


Location

  • AltaGas Ltd.
  • 355 - 4th Avenue SW
  • Suite 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.PRATSX (The Toronto Stock Exchange)PFD SER ACACADAug 2010
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
ALA.PRBTSX (The Toronto Stock Exchange)CUM PFD SER BCACADOct 2015
ALA.PRKTSX (The Toronto Stock Exchange)PFD SER K 5%CACADFeb 2017
ALA.PRHTSX (The Toronto Stock Exchange)FRN CUM PFD HCACADOct 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.