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

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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.

21.27%

2.28

17.77%

S&P/TSX 60

19.1%

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)

18.96%

EBIT Growth (5y)

31.58%

EBIT to Interest (avg)

2.65

Debt to EBITDA (avg)

6.37

Net Debt to Equity (avg)

1.06

Sales to Capital Employed (avg)

0.75

Tax Ratio

18.98%

Dividend Payout Ratio

61.11%

Pledged Shares

Institutional Holding

0.11%

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

1.46

EV to EBIT

20.08

EV to EBITDA

13.78

EV to Capital Employed

1.22

EV to Sales

1.74

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

6.08%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,521 MM

ROCE(HY)

Highest at 9.46%

DIVIDEND PER SHARE(HY)

Highest at CAD 9.15

RAW MATERIAL COST(Y)

Fallen by -15.92% (YoY

CASH AND EQV(HY)

Highest at CAD 521 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.95%

-8What is not working for the Company

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

Here's what is working for AltaGas Ltd.

Operating Cash Flow

Highest at CAD 1,521 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 9.15 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Cash and Eqv

Highest at CAD 521 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.95%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -15.92% (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 84 MM has Fallen at -56.36%

over average net sales of the previous four periods of CAD 192.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 79.48 MM has Fallen at -51.86%

over average net sales of the previous four periods of CAD 165.1 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

Lowest at CAD 2,713 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 2,713 MM has Fallen at -15.26%

over average net sales of the previous four periods of CAD 3,201.5 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)