ALA:CA:TSX-AltaGas Ltd (CAD)

COMMON STOCK | Utilities—Regulated Gas | TSX

Last Closing Price

CAD 16.79

Change

+0.39 (+2.38)%

Market Cap

CAD 4.58B

Volume

0.70M

Average Target Price

CAD 19.46 (+15.91%)
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 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; natural gas and NGL marketing; and gas retail marketing activities. This segment owns approximately 1.4 billion cubic feet per day (Bcf/d) of natural gas extraction processing capacity and holds interests in 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 provision of energy storage and retail power marketing, and ancillary services in Alberta, California, and Colorado. It has 710 megawatt of operational gross capacity from natural gas-fired, biomass, solar, and distributed energy. This segment serves residential, commercial, and industrial users. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada. Address: 355 - 4th Avenue SW, Calgary, AB, Canada, T2P 0J1

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-28 )

Largest Industry Peers for Utilities—Regulated Gas

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

+0.13 (+1.10%)

CAD2.09B 59.30 8.48
ACI:CA TriSummit Utilities Inc

N/A

CAD1.00B 23.92 16.00

ETFs Containing ALA:CA

Symbol Name Weight Mer Price(Change) Market Cap
DXM:CA CI First Asset Morningsta.. 0.00 % 0.60 %

N/A

CAD9.99M
HOG:CA Horizons Pipelines & .. 0.00 % 0.55 %

+0.08 (+1.30%)

CAD0.01B
XUT:CA iShares S&P/TSX Cappe.. 0.00 % 0.55 %

+0.38 (+1.37%)

CAD0.20B
PINC:CA Purpose Multi-Asset Incom.. 0.00 % 0.99 %

+0.25 (+1.47%)

CAD0.16B
FCCD:CA Fidelity Canadian High Di.. 0.00 % 0.40 %

+0.28 (+1.33%)

CAD0.12B

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 -15.12% 50% F 31% F
Dividend Return 2.43% 100% A+ 78% C+
Total Return -12.69% 50% F 33% F
Trailing 12 Months  
Capital Gain -13.68% 50% F 30% F
Dividend Return 3.70% 100% A+ 86% B
Total Return -9.97% 50% F 34% F
Trailing 5 Years  
Capital Gain -48.94% 50% F 20% F
Dividend Return 25.90% 50% F 80% B-
Total Return -23.03% 50% F 25% F
Average Annual (5 Year Horizon)  
Capital Gain -11.62% N/A N/A 11% F
Dividend Return 6.53% N/A N/A 91% A-
Total Return -5.09% N/A N/A 15% F
Risk Return Profile  
Volatility (Standard Deviation) 21.03% N/A N/A 39% F
Risk Adjusted Return -24.23% N/A N/A 21% F
Market Capitalization 4.58B 100% A+ 89% 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 11.46 100% A+ 67% D+
Price/Book Ratio 0.68 100% A+ 75% C
Price / Cash Flow Ratio 7.39 50% F 49% F
EV/EBITDA 10.59 50% F 50% F
Management Effectiveness  
Return on Equity 6.19% 100% A+ 64% D
Return on Invested Capital 0.87% 50% F 39% F
Return on Assets 2.36% 50% F 62% D-
Debt to Equity Ratio 82.16% 100% A+ 34% F
Technical Ratios  
Short Ratio 12.26 50% F 7% F
Short Percent N/A N/A N/A N/A N/A
Beta 1.66 50% F 20% 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.

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.

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.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

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.

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.

What to not like:
Overpriced on cashflow basis

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

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.