AltaGas Ltd. (ALA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian Utilities Ltd.

CF Energy Corp.

AltaGas Ltd.

Brookfield Infrastructure Corp.

Why is AltaGas Ltd. ?

Poor Management Efficiency with a low ROCE of 5.57%

The company has been able to generate a Return on Capital Employed (avg) of 5.57% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 5.57% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 18.96% and Operating profit at 31.58%

Flat results in Jun 25

PRE-TAX PROFIT(Q) At CAD 84 MM has Fallen at -56.36%
NET PROFIT(Q) At CAD 79.48 MM has Fallen at -51.86%
NET SALES(Q) Lowest at CAD 2,713 MM

With ROE of 7.85%, it has a fair valuation with a 1.42 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.83%, its profits have fallen by -2.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AltaGas Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

AltaGas Ltd.

27.54%

2.28

17.77%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.59%

EBIT Growth (5y)

13.60%

EBIT to Interest (avg)

2.65

Debt to EBITDA (avg)

6.37

Net Debt to Equity (avg)

1.06

Sales to Capital Employed (avg)

0.71

Tax Ratio

18.98%

Dividend Payout Ratio

50.74%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

5.57%

ROE (avg)

7.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.68

EV to EBIT

22.16

EV to EBITDA

15.13

EV to Capital Employed

1.32

EV to Sales

1.99

PEG Ratio

Dividend Yield

ROCE (Latest)

5.96%

ROE (Latest)

7.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,534 MM

ROCE(HY)

Highest at 9.29%

DIVIDEND PER SHARE(HY)

Highest at CAD 9.28

RAW MATERIAL COST(Y)

Fallen by -16.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 9.28 times

-11What is not working for the Company

NET PROFIT(Q)

At CAD 28 MM has Fallen at -83.23%

NET SALES(Q)

Lowest at CAD 2,638 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 11 MM

EPS(Q)

Lowest at CAD -0.08

Here's what is working for AltaGas Ltd.

Operating Cash Flow

Highest at CAD 1,534 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 9.28 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Debtors Turnover Ratio

Highest at 9.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for AltaGas Ltd.

Pre-Tax Profit

At CAD 11 MM has Fallen at -94.48%

over average net sales of the previous four periods of CAD 199.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 28 MM has Fallen at -83.23%

over average net sales of the previous four periods of CAD 166.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 2,638 MM has Fallen at -16.61%

over average net sales of the previous four periods of CAD 3,163.5 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Net Sales

Lowest at CAD 2,638 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

Lowest at CAD 11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)