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AltaGas

DB:AQ3
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AQ3
DB
CA$5B
Market Cap
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Last updated 2019/04/21 21:24
Company description

AltaGas Ltd. operates as a diversified energy infrastructure company in North America. The last earnings update was 52 days ago. More info.

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  • AltaGas has significant price volatility in the past 3 months.
AQ3 Share Price and Events
7 Day Returns
-1.4%
DB:AQ3
-0.8%
Europe Gas Utilities
1.8%
DE Market
1 Year Returns
-26.6%
DB:AQ3
9.6%
Europe Gas Utilities
-6%
DE Market
AQ3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AltaGas (AQ3) -1.4% 1.1% 28% -26.6% -45.3% -60.9%
Europe Gas Utilities -0.8% -0.4% 4.1% 9.6% 36.2% 29.1%
DE Market 1.8% 4.6% 7.4% -6% 10.1% 15.3%
1 Year Return vs Industry and Market
  • AQ3 underperformed the Gas Utilities industry which returned 9.6% over the past year.
  • AQ3 underperformed the Market in Germany which returned -6% over the past year.
Price Volatility
AQ3
Industry
5yr Volatility vs Market

Value

 Is AltaGas undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AltaGas to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AltaGas.

DB:AQ3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AQ3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.37 (1 + (1- 26.5%) (205.77%)) 		0.953
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.953 * 5.96%) 		5.91%

Discounted Cash Flow Calculation for DB:AQ3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AltaGas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:AQ3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.91%)
2019 641.00 Analyst x2 605.25
2020 742.87 Analyst x3 662.32
2021 929.90 Analyst x1 782.83
2022 1,030.60 Analyst x1 819.22
2023 1,008.80 Analyst x1 757.16
2024 994.38 Est @ -1.43% 704.72
2025 985.12 Est @ -0.93% 659.21
2026 979.36 Est @ -0.58% 618.81
2027 976.03 Est @ -0.34% 582.31
2028 974.37 Est @ -0.17% 548.90
Present value of next 10 years cash flows CA$6,740.74
DB:AQ3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$974.37 × (1 + 0.23%) ÷ (5.91% – 0.23%) 		CA$17,197.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$17,197.82 ÷ (1 + 5.91%)10 		CA$9,688.22
DB:AQ3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$6,740.74 + CA$9,688.22 		CA$16,428.95
Equity Value per Share
(CAD)		 = Total value / Shares Outstanding
= CA$16,428.95 / 275.88 		CA$59.55
DB:AQ3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AQ3 represents 0.65327x of TSX:ALA
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		0.65327x
Value per Share
(Listing Adjusted, EUR)		 = Value per Share (CAD) x Listing Adjustment Factor
= CA$ 59.55 x 0.65327 		€38.90
Value per share (EUR) From above. €38.90
Current discount Discount to share price of €11.70
= -1 x (€11.70 - €38.90) / €38.90 		69.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AltaGas is available for.
Intrinsic value
>50%
Share price is €11.7 vs Future cash flow value of €38.9
Current Discount Checks
For AltaGas to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AltaGas's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AltaGas's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AltaGas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AltaGas's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AQ3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$-2.25
TSX:ALA Share Price ** TSX (2019-04-18) in CAD CA$17.91
Europe Gas Utilities Industry PE Ratio Median Figure of 8 Publicly-Listed Gas Utilities Companies 17.84x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.59x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AltaGas.

DB:AQ3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ALA Share Price ÷ EPS (both in CAD)

= 17.91 ÷ -2.25

 -7.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AltaGas is loss making, we can't compare its value to the Europe Gas Utilities industry average.
  • AltaGas is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does AltaGas's expected growth come at a high price?
Raw Data
DB:AQ3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts		 93.9%per year
Global Gas Utilities Industry PEG Ratio Median Figure of 29 Publicly-Listed Gas Utilities Companies 2.44x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for AltaGas, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on AltaGas's assets?
Raw Data
DB:AQ3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$20.71
TSX:ALA Share Price * TSX (2019-04-18) in CAD CA$17.91
Europe Gas Utilities Industry PB Ratio Median Figure of 9 Publicly-Listed Gas Utilities Companies 1.81x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:AQ3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ALA Share Price ÷ Book Value per Share (both in CAD)

= 17.91 ÷ 20.71

 0.86x

* Primary Listing of AltaGas.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AltaGas is good value based on assets compared to the Europe Gas Utilities industry average.
Show me more potentially undervalued companies in the Gas Utilities industry
X
Value checks
We assess AltaGas's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
    5. AltaGas has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AltaGas expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
93.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AltaGas expected to grow at an attractive rate?
  • AltaGas's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • AltaGas's earnings growth is expected to exceed the Germany market average.
  • AltaGas's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AQ3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AQ3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 93.9%
DB:AQ3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.6%
Europe Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 40%
Europe Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AQ3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AQ3 Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 4,712 876 397 2
2020-12-31 4,775 929 337 4
2019-12-31 5,045 833 257 6
DB:AQ3 Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,257 -79 -502
2018-09-30 3,337 136 -687
2018-06-30 2,797 579 57
2018-03-31 2,726 534 47
2017-12-31 2,556 541 30
2017-09-30 2,485 526 79
2017-06-30 2,476 514 108
2017-03-31 2,371 518 132
2016-12-31 2,201 456 155
2016-09-30 2,100 412 63
2016-06-30 2,049 397 37
2016-03-31 2,054 436 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AltaGas's earnings are expected to grow significantly at over 20% yearly.
  • AltaGas's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AQ3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from AltaGas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AQ3 Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.41 1.41 1.41 1.00
2020-12-31 1.17 1.29 0.94 5.00
2019-12-31 0.96 1.01 0.86 5.00
DB:AQ3 Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 -2.25
2018-09-30 -3.47
2018-06-30 0.32
2018-03-31 0.27
2017-12-31 0.18
2017-09-30 0.47
2017-06-30 0.65
2017-03-31 0.81
2016-12-31 0.99
2016-09-30 0.42
2016-06-30 0.25
2016-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AltaGas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Gas Utilities industry
X
Future performance checks
We assess AltaGas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AltaGas has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AltaGas performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AltaGas's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AltaGas does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare AltaGas's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare AltaGas's 1-year growth to the Europe Gas Utilities industry average as it is not currently profitable.
Earnings and Revenue History
AltaGas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AltaGas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AQ3 Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,256.70 -501.70 865.10
2018-09-30 3,336.90 -686.80 674.20
2018-06-30 2,796.90 56.80 519.10
2018-03-31 2,725.90 47.30 513.90
2017-12-31 2,556.20 30.30 506.50
2017-09-30 2,484.90 78.90 503.70
2017-06-30 2,475.80 107.90 500.40
2017-03-31 2,370.70 131.90 496.40
2016-12-31 2,201.10 155.40 502.30
2016-09-30 2,099.70 63.30 491.00
2016-06-30 2,048.90 36.90 511.50
2016-03-31 2,054.00 -1.00 504.30
2015-12-31 2,183.40 9.90 491.90
2015-09-30 2,271.60 74.40 486.50
2015-06-30 2,274.30 71.00 464.90
2015-03-31 2,302.80 121.90 453.80
2014-12-31 2,401.20 95.60 450.60
2014-09-30 2,324.21 138.68 453.88
2014-06-30 2,268.14 165.33 448.13
2014-03-31 2,261.08 172.38 444.65
2013-12-31 2,052.20 181.50 430.50
2013-09-30 2,003.45 154.97 411.64
2013-06-30 1,899.35 119.75 387.64
2013-03-31 1,687.65 109.60 349.21
2012-12-31 1,427.62 101.85 323.01
2012-09-30 1,166.06 106.72 288.05
2012-06-30 1,195.20 109.78 269.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if AltaGas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if AltaGas has efficiently used its assets last year compared to the Europe Gas Utilities industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if AltaGas improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess AltaGas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AltaGas has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AltaGas's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AltaGas's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AltaGas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AltaGas's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of AltaGas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AltaGas Company Filings, last reported 3 months ago.

DB:AQ3 Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,640.20 10,167.00 101.60
2018-09-30 7,063.00 10,435.80 14.10
2018-06-30 5,544.70 3,463.10 783.80
2018-03-31 4,747.90 3,687.40 100.10
2017-12-31 4,639.20 3,672.20 27.30
2017-09-30 4,674.30 3,653.90 25.10
2017-06-30 4,795.40 3,654.20 156.10
2017-03-31 4,875.80 3,492.50 32.40
2016-12-31 4,615.40 3,879.00 19.00
2016-09-30 4,547.60 3,792.40 4.90
2016-06-30 4,502.40 3,757.60 77.40
2016-03-31 4,095.40 3,828.40 8.50
2015-12-31 4,202.90 4,150.60 293.40
2015-09-30 4,017.80 3,374.10 409.90
2015-06-30 3,642.70 3,315.30 289.60
2015-03-31 3,723.90 3,344.30 340.70
2014-12-31 3,574.20 3,318.60 421.00
2014-09-30 3,541.94 3,274.90 462.15
2014-06-30 2,854.47 3,242.09 27.88
2014-03-31 2,894.84 3,274.73 78.24
2013-12-31 2,829.50 3,246.20 44.80
2013-09-30 2,475.11 3,044.03 60.54
2013-06-30 2,481.70 3,031.71 95.53
2013-03-31 2,044.91 2,761.80 24.49
2012-12-31 1,999.80 2,702.33 11.83
2012-09-30 1,988.21 2,586.37 58.43
2012-06-30 1,595.63 1,496.61 2.38
  • AltaGas's level of debt (133.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (114.7% vs 133.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • AltaGas is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess AltaGas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. AltaGas has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.36%
Current annual income from AltaGas dividends. Estimated to be 5.39% next year.
If you bought €2,000 of AltaGas shares you are expected to receive €107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AltaGas's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • AltaGas's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Upcoming dividend payment

Purchase AltaGas before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AQ3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AQ3 Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.96 1.00
2022-12-31 0.96 1.00
2021-12-31 0.96 3.00
2020-12-31 0.97 12.00
2019-12-31 0.96 14.00
DB:AQ3 Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-04-10 0.960 5.271
2019-02-11 0.960 5.605
2018-12-13 0.960 6.923
2018-10-10 2.190 13.301
2018-09-10 2.190 10.033
2018-08-01 2.190 8.782
2018-07-10 2.190 8.018
2018-06-11 2.190 8.235
2018-04-10 2.190 8.705
2018-03-01 2.190 9.141
2018-02-12 2.190 8.363
2018-01-10 2.190 7.835
2017-12-11 2.190 7.587
2017-10-10 2.100 7.214
2017-09-11 2.100 7.427
2017-07-10 2.100 7.398
2017-06-12 2.100 7.040
2017-04-26 2.100 6.863
2017-04-10 2.100 6.787
2017-02-10 2.100 6.773
2017-01-10 2.100 6.600
2016-12-12 2.100 6.151
2016-10-11 2.100 6.395
2016-09-12 2.100 6.309
2016-07-21 2.100 6.206
2016-07-11 1.980 6.332
2016-06-10 1.980 6.396
2016-04-11 1.980 6.467
2016-02-11 1.980 6.074
2016-01-11 1.980 6.550
2015-12-10 1.980 6.522
2015-09-22 1.980 6.004
2015-09-10 1.920 5.556
2015-07-30 1.920 5.590
2015-07-10 1.920 5.204
2015-06-10 1.920 4.982
2015-04-30 1.920 4.820
2015-04-10 1.770 4.267
2015-02-10 1.770 4.068
2015-01-12 1.770 4.157
2014-12-10 1.770 4.391
2014-10-10 1.770 3.990
2014-09-10 1.770 3.662
2014-07-31 1.770 3.478
2014-07-10 1.770 3.617
2014-06-10 1.770 3.604
2014-05-05 1.770 3.621
2014-04-10 1.530 3.252
2014-02-10 1.530 3.488
2014-01-10 1.530 3.725
2013-12-10 1.530 3.803
2013-10-10 1.530 4.020
2013-09-10 1.530 4.246
2013-08-01 1.530 4.233
2013-07-10 1.500 4.092
2013-06-10 1.500 4.013
2013-04-25 1.500 3.883
2013-04-10 1.440 4.012
2013-02-28 1.440 4.071
2013-02-11 1.440 4.138
2013-01-10 1.440 4.153
2012-12-10 1.440 4.298
2012-11-01 1.440 4.278
2012-10-10 1.440 4.288
2012-09-10 1.440 4.350
2012-07-26 1.380 4.439
2012-07-10 1.380 4.655
2012-06-11 1.380 4.815
2012-04-26 1.380 4.618
2012-04-10 1.380 4.537
2012-03-08 1.380 4.412
2012-02-10 1.380 4.570
2012-01-10 1.380 4.593
2011-10-27 1.380 4.495
2011-10-11 1.320 4.663
2011-09-12 1.320 4.848
2011-07-28 1.320 5.033
2011-07-11 1.320 4.959
2011-05-05 1.320 5.222
2011-02-24 1.320 5.207
2010-10-28 1.320 6.104
2010-06-11 1.320 6.603
2010-04-29 2.160 12.426
2010-04-12 2.160 11.768
2010-02-26 2.160 11.691
2010-02-11 2.160 11.608
2010-01-12 2.160 11.614
2009-12-11 2.160 11.571
2009-11-05 2.160 11.822
2009-10-13 2.160 11.785
2009-09-11 2.160 12.477
2009-08-05 2.160 12.877
2009-07-13 2.160 13.391
2009-06-15 2.100 12.925
2009-05-07 2.160 13.160
2009-04-22 2.160 14.449

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of AltaGas's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess AltaGas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AltaGas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. AltaGas has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AltaGas's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Randy Crawford
COMPENSATION CA$4,925,555
AGE 55
TENURE AS CEO 0.3 years
CEO Bio

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, 2018. Mr. Crawford is President of AltaGas Ltd since 2018. He serves as the President of EQM Gathering Opco, LLC and EQT Gathering, LLC. He is a Director of Washington Gas Light Company since December 14, 2018. Mr. Crawford serves as Chief Operating Officer of Eqt Midstream Services, Llc. Mr. Crawford served as an Executive Vice President of EQT Midstream Services, LLC, General Partner of EQT Midstream Partners, LP from December 2012 to February 28, 2017. He served as Senior Vice President of EQT Corporation from January 2008 to February 28, 2017 and served as its President of Midstream & Commercial from January 2008 to February 28, 2017. He served as Vice President of EQT Corporation from February 2004 to February 2007. He is responsible for executing the growth strategy for EQT's natural gas midstream, distribution and production marketing companies operating in the rapidly growing Marcellus Shale natural gas supply region. He has deep business, senior management and technical industry experience. He served as the President of Midstream & Distribution of EQT from January 2008 to April 2010, President of Equitable Utilities from February 2004 to December 2007 and President of Equitable Gas from January 2003 to January 2004. He served as Senior Vice President of Equitable Gas Company from December 27, 1999 to November 2000 and Executive Vice President from November 16, 2000 to December 2002. He held various financial and regulatory management positions with Consolidated Natural Gas Company in Pittsburgh and started his career with Price Waterhouse LLC Utility Services Practice. He also serves as the Director at EQT Midstream Finance Corporation. He has been a Director of American Gas Association since January 2010. He served as a Director of EQT Midstream Services, LLC from January 2012 to January 17, 2017.

CEO Compensation
  • Insufficient data for Randy to compare compensation growth.
  • Randy's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the AltaGas management team in years:

2.3
Average Tenure
58
Average Age
  • The tenure for the AltaGas management team is about average.
Management Team

Randy Crawford

TITLE
President
COMPENSATION
CA$5M
AGE
55
TENURE
0.3 yrs

David Cornhill

TITLE
Founder & Director
COMPENSATION
CA$3M
AGE
64

Tim Watson

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
TENURE
3.4 yrs

John O’Brien

TITLE
Executive VP of Government & Regulatory Affairs - ASUS and EVP of Strategy & Public Affairs - WG
COMPENSATION
CA$2M
AGE
58

Adrian Chapman

TITLE
President & CEO of Washington Gas Light and President U.S. Utilities - ASUS
COMPENSATION
CA$6M
AGE
61

Corine Renne Bushfield

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
CA$2M
AGE
43
TENURE
2.3 yrs

Jess Nieukerk

TITLE
Senior Director of Investor Relations

Brad Grant

TITLE
Executive VP of Strategy & Corporate Development and Chief Legal Officer
COMPENSATION
CA$1M
TENURE
3.9 yrs

Kent Stout

TITLE
Senior Vice President of Organizational Development
COMPENSATION
CA$991K
TENURE
2.3 yrs

Randy Toone

TITLE
Executive VP & President of Midstream
COMPENSATION
CA$634K
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the AltaGas board of directors in years:

11.3
Average Tenure
64
Average Age
  • The average tenure for the AltaGas board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Pentti Karkkainen

TITLE
Chairman of the Board
COMPENSATION
CA$92K
AGE
63

Randy Crawford

TITLE
President
COMPENSATION
CA$5M
AGE
55
TENURE
0.3 yrs

David Cornhill

TITLE
Founder & Director
COMPENSATION
CA$3M
AGE
64
TENURE
25 yrs

Daryl Gilbert

TITLE
Independent Director
COMPENSATION
CA$176K
AGE
66
TENURE
18.9 yrs

Bob Hodgins

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
67
TENURE
14.1 yrs

M. McCrank

TITLE
Independent Director
COMPENSATION
CA$236K
AGE
74
TENURE
11.3 yrs

Phil Knoll

TITLE
Independent Director
COMPENSATION
CA$2M
AGE
63
TENURE
3.4 yrs

Al Edgeworth

TITLE
Independent Director
COMPENSATION
CA$176K
AGE
67
TENURE
14.1 yrs

Kay Best

TITLE
Independent Director
COMPENSATION
CA$171K
AGE
64
TENURE
7.4 yrs

Victoria Calvert

TITLE
Independent Director
COMPENSATION
CA$171K
AGE
62
TENURE
3.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AltaGas insiders in the past 3 months, but not in substantial volumes.
Show me more companies with insider buying in the Gas Utilities industry
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
01. Apr 19 Buy Pentti Karkkainen Individual 01. Apr 19 01. Apr 19 3,000 €11.70 €35,090
07. Jan 19 Buy Phillip Knoll Individual 21. Dec 18 21. Dec 18 1,700 €8.31 €14,131
28. Dec 18 Buy Phillip Knoll Individual 24. Dec 18 24. Dec 18 1,000 €7.79 €7,787
25. Dec 18 Buy Allan Edgeworth Individual 21. Dec 18 21. Dec 18 5,000 €8.44 €42,048
21. Dec 18 Buy Phillip Knoll Individual 17. Dec 18 19. Dec 18 6,500 €9.35 €59,337
18. Dec 18 Buy Pentti Karkkainen Individual 17. Dec 18 17. Dec 18 7,000 €9.22 €64,550
12. Oct 18 Sell Jared Green Individual 09. Oct 18 09. Oct 18 -22,750 €14.13 €-321,365
25. Sep 18 Buy Phillip Knoll Individual 25. Sep 18 25. Sep 18 2,500 €13.73 €34,327
24. Sep 18 Buy Terry McCallister Individual 21. Sep 18 21. Sep 18 44,000 €14.23 €625,997
20. Sep 18 Buy Robert Hodgins Individual 20. Sep 18 20. Sep 18 2,350 €14.29 €33,530
X
Management checks
We assess AltaGas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. AltaGas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: AltaGas Ltd.
AQ3
Exchange: DB
Founded: 1994
CA$3,281,077,520
275,876,687
Website: http://www.altagas.ca
Address: AltaGas Ltd.
355 - 4th Avenue SW,
Suite 1700,
Calgary,
Alberta, T2P 0J1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ALA Common Shares The Toronto Stock Exchange CA CAD 22. Jul 1999
OTCPK ATGF.F Common Shares Pink Sheets LLC US USD 22. Jul 1999
DB AQ3 Common Shares Deutsche Boerse AG DE EUR 22. Jul 1999
TSX ALA.PRU PFD SHS SER C The Toronto Stock Exchange CA USD 07. Jun 2012
TSX ALA.PRE RED PFDSHS SER E The Toronto Stock Exchange CA CAD 13. Dec 2013
TSX ALA.PRG PFD SHS SER G The Toronto Stock Exchange CA CAD 04. Jul 2014
TSX ALA.PRK PFD SER K 5% The Toronto Stock Exchange CA CAD 22. Feb 2017
OTCPK ALTG.F PFD SHS SER C Pink Sheets LLC US USD 07. Jun 2012
Number of employees
Current staff
Staff numbers
2,881
AltaGas employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 21:24
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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