NasdaqGS:LNT

Stock Analysis Report

Executive Summary

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the Midwest region of the United States.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Alliant Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

LNT

-1.5%

US Electric Utilities

1.0%

US Market


1 Year Return

24.6%

LNT

19.5%

US Electric Utilities

6.7%

US Market

Return vs Industry: LNT exceeded the US Electric Utilities industry which returned 19.5% over the past year.

Return vs Market: LNT exceeded the US Market which returned 6.7% over the past year.


Share holder returns

LNTIndustryMarket
7 Day-1.4%-1.5%1.0%
30 Day2.7%1.8%-1.8%
90 Day6.2%5.1%-1.8%
1 Year28.5%24.6%23.5%19.5%9.1%6.7%
3 Year56.6%42.5%44.9%30.4%46.1%36.6%
5 Year110.6%79.0%75.0%45.0%66.9%48.6%

Price Volatility Vs. Market

How volatile is Alliant Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: LNT ($53.03) is trading above our estimate of fair value ($43.13)

Significantly Undervalued: LNT is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: LNT is poor value based on its PE Ratio (24.5x) compared to the Electric Utilities industry average (23.5x).

PE vs Market: LNT is poor value based on its PE Ratio (24.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: LNT is poor value based on its PEG Ratio (3.3x)


Price Based on Value of Assets

PB vs Industry: LNT is overvalued based on its PB Ratio (2.7x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: LNT's forecast earnings growth (7.5% per year) is above the savings rate (2.7%).

Earnings vs Market: LNT's earnings (7.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: LNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: LNT's revenue (5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LNT's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: LNT's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Alliant Energy performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LNT's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: LNT's earnings growth over the past year (5.5%) is below its 5-year average (7% per year).

Earnings vs Industry: LNT earnings growth over the past year (5.5%) exceeded the Electric Utilities industry 4.2%.


Return on Equity

High ROE: LNT's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: LNT has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: LNT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Alliant Energy's financial position?


Financial Position Analysis

Short Term Liabilities: LNT's short term assets ($1.0B) do not cover its short term liabilities ($1.9B)

Long Term Liabilities: LNT's short term assets (1.0B) do not cover its long term liabilities (9.3B)


Debt to Equity History and Analysis

Debt Level: LNT's debt to equity ratio (133.4%) is considered high

Reducing Debt: LNT's debt to equity ratio has increased from 103% to 133.4% over the past 5 years.

Debt Coverage: LNT's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: LNT's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: LNT has a high level of physical assets or inventory.

Debt Coverage by Assets: LNT's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

2.84%

Expected Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years2.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: LNT's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: LNT's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: LNT's dividends per share have been stable in the past 10 years.

Growing Dividend: LNT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.9%), LNT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LNT's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

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

0.8yrs

Average management tenure


CEO

John Larsen (55yo)

0.3yrs

Tenure

US$2,452,950

Compensation

Mr. John O. Larsen has been the President at Alliant Energy Corporation since January 1, 2018 and has been its Chairman and Chief Executive Officer since July 1, 2019 and also serves as its Chief Operating ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.8yrs

Average Tenure

55yo

Average Age

Experienced Management: LNT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

Experienced Board: LNT's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: LNT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$50,00005 Sep 19
David de Leon
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares940.82
Max PriceUS$53.15
SellUS$261,43730 Aug 19
James Gallegos
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,000
Max PriceUS$52.29

Ownership Breakdown


Management Team

  • Jim Gallegos (58yo)

    Senior VP

    • Tenure: 8.9yrs
    • Compensation: US$1.79m
  • Kevin Burke (59yo)

    President of Alliant Energy Transportation

    • Tenure: 7.8yrs
  • John Larsen (55yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$2.45m
  • Terry Kouba (59yo)

    Senior Vice President

    • Tenure: 0.8yrs
  • Robert Durian (48yo)

    Senior VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$1.84m
  • Ben Bilitz (44yo)

    Chief Accounting Officer & Controller

    • Tenure: 2.8yrs
  • Barbara Tormaschy (54yo)

    VP & Treasurer

    • Tenure: 0.7yrs
  • David de Leon (56yo)

    Senior Vice President

    • Tenure: 0.8yrs
  • Sue Gille

    Manager of Investor Relations

    • Tenure: 0yrs
  • Aimee Davis (46yo)

    Vice President of Communications & Marketing

    • Tenure: 0.8yrs

Board Members

  • Patrick Allen (55yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$225.00k
  • Tom O’Toole (61yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$237.50k
  • Singleton McAllister (66yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$227.97k
  • John Larsen (55yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$2.45m
  • Dean Oestreich (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$275.12k
  • Susan Whiting (62yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$240.00k
  • Roger Newport (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$117.50k
  • Carol Sanders (51yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$249.62k
  • Jill Evanko (41yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Alliant Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alliant Energy Corporation
  • Ticker: LNT
  • Exchange: NasdaqGS
  • Founded: 1917
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$12.595b
  • Shares outstanding: 237.52m
  • Website: https://www.alliantenergy.com

Number of Employees


Location

  • Alliant Energy Corporation
  • 4902 North Biltmore Lane
  • Madison
  • Wisconsin
  • 53718
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
AY1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0HCTLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969

Biography

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the Midwest region of the United States. It operates through three segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:14
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)