ScoreWhy is AltaGas Ltd. ?
1
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)
2
The company is Net-Debt Free
- The company is Net-Debt Free
- 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)
3
Healthy long term growth as Net Sales has grown by an annual rate of 13.61% and Operating profit at 10.99%
4
With a growth in Operating Profit of 47.7%, the company declared Very Positive results in Mar 26
- DIVIDEND PER SHARE(HY) Highest at CAD 6.87
- INTEREST COVERAGE RATIO(Q) Highest at 629.41
- DIVIDEND PAYOUT RATIO(Y) Highest at 70.73%
5
With ROE of 7.90%, it has a fair valuation with a 1.88 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 40.84%, its profits have risen by 7.6% ; the PEG ratio of the company is 7.9
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to AltaGas Ltd. should be less than 10%
- Overall Portfolio exposure to Gas should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is AltaGas Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
AltaGas Ltd.
40.84%
4.11
18.10%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.61%
EBIT Growth (5y)
10.99%
EBIT to Interest (avg)
2.65
Debt to EBITDA (avg)
6.37
Net Debt to Equity (avg)
1.06
Sales to Capital Employed (avg)
0.69
Tax Ratio
18.98%
Dividend Payout Ratio
50.74%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
5.57%
ROE (avg)
7.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
1.88
EV to EBIT
22.30
EV to EBITDA
15.54
EV to Capital Employed
1.42
EV to Sales
2.09
PEG Ratio
7.94
Dividend Yield
NA
ROCE (Latest)
6.38%
ROE (Latest)
7.90%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at CAD 6.87
INTEREST COVERAGE RATIO(Q)
Highest at 629.41
DIVIDEND PAYOUT RATIO(Y)
Highest at 70.73%
RAW MATERIAL COST(Y)
Fallen by -0.69% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 18.99 times
NET SALES(Q)
Highest at CAD 4,319 MM
OPERATING PROFIT(Q)
Highest at CAD 749 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.34 %
PRE-TAX PROFIT(Q)
Highest at CAD 547 MM
NET PROFIT(Q)
Highest at CAD 403.66 MM
-3What is not working for the Company
ROCE(HY)
Lowest at 5.71%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.87 times
Here's what is working for AltaGas Ltd.
Interest Coverage Ratio
Highest at 629.41
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At CAD 547 MM has Grown at 172.82%
over average net sales of the previous four periods of CAD 200.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CAD MM)
Net Profit
At CAD 403.66 MM has Grown at 148.91%
over average net sales of the previous four periods of CAD 162.17 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CAD MM)
Dividend per share
Highest at CAD 6.87 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Net Sales
Highest at CAD 4,319 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Net Sales
At CAD 4,319 MM has Grown at 38.06%
over average net sales of the previous four periods of CAD 3,128.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Operating Profit
Highest at CAD 749 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 17.34 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 547 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 403.66 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Inventory Turnover Ratio
Highest at 18.99 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 70.73%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.69% (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.
Debtors Turnover Ratio
Lowest at 6.87 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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