ALA:CA:TSX-AltaGas Ltd (CAD)

COMMON STOCK | Utilities—Regulated Gas | TSX

Last Closing Price

CAD 11.93

Change

0.00 (0.00)%

Market Cap

CAD 3.33B

Volume

0.91M

Average Target Price

CAD 21.73 (+82.17%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-04-05 )

Largest Industry Peers for Utilities—Regulated Gas

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
SPB:CA Superior Plus Corp

N/A

CAD1.38B 9.83 N/A
ACI:CA TriSummit Utilities Inc

N/A

CAD1.00B 23.01 N/A

ETFs Containing ALA:CA

Symbol Name Weight Mer Price(Change) Market Cap
HOG:CA Horizons Pipelines & Ener.. 9.62 % 0.55 %

N/A

CAD9.73M
FCCD:CA Fidelity Canadian High Di.. 5.15 % 0.00 %

N/A

CAD0.13B
XUT:CA iShares S&P/TSX Capped Ut.. 4.66 % 0.55 %

N/A

CAD0.16B
MKC:CA Mackenzie Maximum Diversi.. 2.59 % 0.59 %

N/A

CAD0.35B
MCSM:CA Manulife Multifactor Cana.. 1.93 % 0.68 %

N/A

CAD5.07M

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 -39.69% 33% F 23% F
Dividend Return 0.40% 33% F 51% F
Total Return -39.28% 33% F 23% F
Trailing 12 Months  
Capital Gain -33.35% 33% F 33% F
Dividend Return 4.47% 67% D+ 91% A-
Total Return -28.88% 33% F 36% F
Trailing 5 Years  
Capital Gain -72.14% 50% F 19% F
Dividend Return 21.17% 50% F 76% C
Total Return -50.97% 50% F 25% F
Average Annual (5 Year Horizon)  
Capital Gain -11.57% 22% F 9% F
Dividend Return 6.70% 89% B+ 93% A
Total Return -4.88% 22% F 14% F
Risk Return Profile  
Volatility (Standard Deviation) 21.17% 44% F 43% F
Risk Adjusted Return -23.05% 22% F 11% F
Market Capitalization 3.33B 100% A+ 88% B+
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%

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 4.18 100% A+ 87% B+
Price/Book Ratio N/A N/A N/A N/A N/A
Price / Cash Flow Ratio 5.41 67% D+ 54% F
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 11.20% 67% D+ 72% C-
Return on Invested Capital 4.29% 33% F 48% F
Return on Assets 1.62% 33% F 49% F
Debt to Equity Ratio 99.72% 100% A+ 31% F
Technical Ratios  
Short Ratio 5.04 33% F 18% F
Short Percent N/A N/A N/A N/A N/A
Beta 0.97 67% D+ 43% 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:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

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 earnings

The stock is trading low compared to its peers on a price to earning 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.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total 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.

What to not like:
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 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.