Executive Summary
AltaGas Ltd. operates as a diversified energy infrastructure company in North America.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -37.9% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Undervalued 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: AQ3 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
AQ3
0.7%
DE Gas Utilities
-0.9%
DE Market
1 Year Return
48.9%
AQ3
7.7%
DE Gas Utilities
12.8%
DE Market
Return vs Industry: AQ3 exceeded the German Gas Utilities industry which returned 7.7% over the past year.
Return vs Market: AQ3 exceeded the German Market which returned 12.8% over the past year.
Shareholder returns
| AQ3 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 0.7% | -0.9% |
| 30 Day | 11.9% | 3.3% | -0.4% |
| 90 Day | 14.6% | 6.7% | 2.3% |
| 1 Year | 56.0%48.9% | 12.7%7.7% | 16.3%12.8% |
| 3 Year | -16.2%-32.0% | 52.3%31.8% | 15.8%5.7% |
| 5 Year | -32.2%-51.2% | 54.5%15.4% | 19.7%3.3% |
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
No news available
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: AQ3 (€15.35) is trading below our estimate of fair value (€44.96)
Significantly Below Fair Value: AQ3 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AQ3 is good value based on its PE Ratio (5.9x) compared to the Gas Utilities industry average (18.9x).
PE vs Market: AQ3 is good value based on its PE Ratio (5.9x) compared to the German market (21x).
Price to Earnings Growth Ratio
PEG Ratio: AQ3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AQ3 is good value based on its PB Ratio (1x) compared to the XE Gas Utilities industry average (1.3x).
Next Steps
Future Growth
How is AltaGas forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-37.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AQ3's earnings are forecast to decline over the next 3 years (-37.9% per year).
Earnings vs Market: AQ3's earnings are forecast to decline over the next 3 years (-37.9% per year).
High Growth Earnings: AQ3's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AQ3's revenue is expected to decline over the next 3 years (-0% per year).
High Growth Revenue: AQ3's revenue is forecast to decline over the next 3 years (-0% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AQ3's Return on Equity is forecast to be low in 3 years time (5.9%).
Next Steps
Past Performance
How has AltaGas performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AQ3 has a large one-off gain of CA$709.4M impacting its September 30 2019 financial results.
Growing Profit Margin: AQ3 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: AQ3's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: AQ3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: AQ3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (10.6%).
Return on Equity
High ROE: AQ3's Return on Equity (14.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is AltaGas's financial position?
Financial Position Analysis
Short Term Liabilities: AQ3's short term assets (CA$1.8B) do not cover its short term liabilities (CA$3.6B).
Long Term Liabilities: AQ3's short term assets (CA$1.8B) do not cover its long term liabilities (CA$9.4B).
Debt to Equity History and Analysis
Debt Level: AQ3's debt to equity ratio (100.6%) is considered high.
Reducing Debt: AQ3's debt to equity ratio has increased from 92.5% to 100.6% over the past 5 years.
Debt Coverage: AQ3's debt is not well covered by operating cash flow (7%).
Interest Coverage: AQ3's interest payments on its debt are not well covered by EBIT (1.7x coverage).
Balance Sheet
Inventory Level: AQ3 has a high level of physical assets or inventory.
Debt Coverage by Assets: AQ3's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is AltaGas's current dividend yield, its reliability and sustainability?
4.28%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AQ3's dividend (4.28%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: AQ3's dividend (4.28%) is in the top 25% of dividend payers in the German market (3.63%)
Stability and Growth of Payments
Stable Dividend: AQ3's dividend payments have been volatile in the past 10 years.
Growing Dividend: AQ3's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.7%), AQ3's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AQ3's dividends in 3 years are forecast to be covered by earnings (64.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Randy Crawford (56yo)
1.2yrs
Tenure
CA$4,925,555
Compensation
Mr. Randall L. Crawford, also known as Randy, serves as Director at WGL Holdings, Inc. Mr. Crawford has been the Chief Executive Officer and a Non-Independent Director at AltaGas Ltd. since December 10, 20 ...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD3.73M) is above average for companies of similar size in the German market ($USD2.28M).
Compensation vs Earnings: Insufficient data to compare Randy's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.2yrs | CA$4.93m | 0.0066% CA$289.3k | |
| Founder & Director | 25.8yrs | CA$2.40m | 0.58% CA$25.3m | |
| Executive VP of Government & Regulatory Affairs - ASUS and EVP of Strategy & Public Affairs - WG | 0yrs | CA$2.14m | no data | |
| Executive VP & CFO | 0.7yrs | no data | 0.011% CA$484.7k | |
| Executive VP & Chief Administrative Officer | 3.2yrs | CA$1.76m | 0.0015% CA$64.7k | |
| Senior Director of Investor Relations | 0yrs | no data | no data | |
| Executive VP of Strategy & Corporate Development and Chief Legal Officer | 4.8yrs | CA$1.20m | 0.0014% CA$59.0k | |
| Senior Vice President of Organizational Development | 3.2yrs | CA$991.41k | no data | |
| Executive VP & President of Midstream | 3.2yrs | CA$634.39k | 0.0014% CA$62.9k | |
| Senior Vice President of Commercial & Business Operations | 0yrs | CA$722.72k | no data |
3.2yrs
Average Tenure
56yo
Average Age
Experienced Management: AQ3's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.2yrs | CA$4.93m | 0.0066% CA$289.3k | |
| Founder & Director | 25.8yrs | CA$2.40m | 0.58% CA$25.3m | |
| Independent Director | 14.9yrs | CA$249.90k | 0.0061% CA$265.3k | |
| Independent Director | 14.9yrs | CA$176.50k | 0.014% CA$624.1k | |
| Non-Independent Director | 1.6yrs | CA$123.03k | 0.016% CA$688.3k | |
| Independent Chairman of the Board | 0.8yrs | CA$92.50k | 0.0036% CA$156.5k | |
| Independent Director | 4.3yrs | CA$1.95m | 0.0064% CA$279.7k | |
| Independent Director | 19.8yrs | CA$176.50k | 0.015% CA$639.8k | |
| Independent Director | 1.6yrs | CA$91.16k | 0.0011% CA$46.8k | |
| Independent Director | 4.3yrs | CA$170.57k | 0.0027% CA$119.3k |
4.3yrs
Average Tenure
64yo
Average Age
Experienced Board: AQ3's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AQ3 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39%.
Top Shareholders
Company Information
AltaGas Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: AltaGas Ltd.
- Ticker: AQ3
- Exchange: DB
- Founded: 1994
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: CA$6.273b
- Listing Market Cap: CA$4.370b
- Shares outstanding: 279.42m
- Website: https://www.altagas.ca
Number of Employees
Location
- AltaGas Ltd.
- 355 - 4th Avenue SW
- Suite 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) | 4.4 PFD SHS C | CA | USD | Jun 2012 | |
| ALTG.F | OTCPK (Pink Sheets LLC) | 4.4 PFD SHS C | US | USD | Jun 2012 | |
| ALA.PRE | TSX (The Toronto Stock Exchange) | RED PFDSHS SER E | CA | CAD | Dec 2013 | |
| ATGA.F | OTCPK (Pink Sheets LLC) | PFD SHS SER G | US | CAD | Jul 2014 | |
| ALA.PRI | TSX (The Toronto Stock Exchange) | PFD SER I | CA | CAD | Nov 2015 | |
| TGAP.F | OTCPK (Pink Sheets LLC) | PFD SER I | US | USD | Nov 2015 | |
| ALA.PRK | TSX (The Toronto Stock Exchange) | PFD SER K 5% | CA | CAD | Feb 2017 | |
| ALA.PRH | TSX (The Toronto Stock Exchange) | PFD CUM SHS 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 regulated natural gas distribution utilities in Michigan, Alaska, the District of Columbia, Maryland, and Virginia; and 2 regulated natural gas storage utilities in the United States serving approximately 1.6 million customers. This segment also provides interstate natural gas transportation and storage services. It serves homes and businesses. The Midstream segment engages in the natural gas gathering and processing; natural gas liquids (NGL) extraction and fractionation, transmission, and storage; natural gas and NGL marketing; and gas retail marketing activities. This segment owns approximately 1.5 billion cubic feet per day (Bcf/d) of natural gas extraction processing capacity and approximately 0.7 Bcf/d of raw field gas processing capacity; and holds interest in 4 regulated pipelines in the Marcellus/Utica gas formation in the northeastern United States. It serves residential, commercial, and industrial customers primarily in the Western Canada Sedimentary Basin. The Power segment is involved in the generation and sale of electricity; and energy storage and retail power marketing activities. It has 1,105 megawatt of operational gross capacity from natural gas-fired, biomass, solar, and distributed energy. This segment also provides ancillary services. It serves residential, commercial, and industrial users. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 21:48 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.