ALA:CA:TSX-AltaGas Ltd (CAD)

COMMON STOCK | Utilities-Regulated Gas | TSX

Last Closing Price

CAD 23.70

Change

+0.08 (+0.34)%

Market Cap

CAD 6.61B

Volume

0.89M

Average Target Price

CAD 24.48 (+3.30%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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 natural gas distribution utilities in Michigan, Alaska, the District of Columbia, Maryland, and Virginia; and two regulated natural gas storage utilities in the United States serving approximately 1.7 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; and natural gas and NGL marketing activities. This segment owns approximately 1.5 billion cubic feet per day of natural gas capacity. The company also holds interest in a regulated pipeline in the Marcellus/Utica gas formation in the northeastern United States; and engages in LPG exports and distribution, domestic terminals, wellsite fluids and fuels, and trucking and liquids handling businesses. It serves residential, commercial, and industrial customers primarily in the Western Canada Sedimentary Basin. Additionally, the company operates two natural gas-fired plants with 577 MW of generating capacity in California and Colorado; and energy storage assets in Alberta, Canada, as well as nine states and the district of Columbia in the United States. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-05-13 )

Largest Industry Peers for Utilities-Regulated Gas

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
ALA-PG:CA AltaGas Ltd

-0.02 (-0.09%)

CAD8.12B 17.31 N/A
ALA-PE:CA AltaGas Ltd

+0.06 (+0.25%)

CAD7.38B 18.89 N/A
ALA-PK:CA AltaGas Ltd

+0.13 (+0.51%)

CAD6.91B 19.91 N/A
ALA-PU:CA AltaGas Ltd

+0.04 (+0.17%)

CAD5.26B 22.14 N/A
SPB:CA Superior Plus Corp

-0.46 (-3.02%)

CAD2.68B 35.62 8.34
ACI:CA TriSummit Utilities Inc

N/A

CAD1.00B 23.92 16.00
ALA-PH:CA AltaGas Ltd

-0.03 (-0.15%)

N/A 15.96 N/A

ETFs Containing ALA:CA

Symbol Name Weight Mer Price(Change) Market Cap
HOG:CA Horizons Pipelines & Ener.. 0.00 % 0.55 %

-0.01 (-0.12%)

CAD0.02B
XUT:CA iShares S&P/TSX Capped Ut.. 0.00 % 0.55 %

+0.01 (+0.03%)

CAD0.27B
PINC:CA Purpose Multi-Asset Incom.. 0.00 % 1.02 %

+0.01 (+0.05%)

CAD0.11B

Market Performance

  Market Performance vs.
Industry/Classification (Utilities-Regulated Gas)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 26.60% 100% A+ 82% B-
Dividend Return 1.78% 50% F 84% B
Total Return 28.38% 100% A+ 83% B
Trailing 12 Months  
Capital Gain 52.61% 50% F 67% D+
Dividend Return 6.29% 50% F 83% B
Total Return 58.90% 50% F 68% D+
Trailing 5 Years  
Capital Gain -19.99% 50% F 21% F
Dividend Return 26.80% 50% F 88% B+
Total Return 6.82% 50% F 29% F
Average Annual (5 Year Horizon)  
Capital Gain -10.36% 50% F 9% F
Dividend Return 6.22% 100% A+ 95% A
Total Return -4.14% 50% F 13% F
Risk Return Profile  
Volatility (Standard Deviation) 25.08% 50% F 37% F
Risk Adjusted Return -16.52% 50% F 14% F
Market Capitalization 6.61B 50% F 84% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Utilities-Regulated Gas)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 18.44 71% C- 36% F
Price/Book Ratio 1.10 100% A+ 74% C
Price / Cash Flow Ratio 8.55 67% D+ 45% F
EV/EBITDA 12.95 50% F 46% F
Management Effectiveness  
Return on Equity 5.62% 14% F 51% F
Return on Invested Capital 3.27% 14% F 51% F
Return on Assets 2.74% 14% F 61% D-
Debt to Equity Ratio 108.19% 29% F 27% F
Technical Ratios  
Short Ratio 8.52 71% C- 13% F
Short Percent N/A N/A N/A N/A N/A
Beta 1.64 14% F 19% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.