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Alliant Energy (LNT)
NASDAQ:LNT
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Alliant Energy
(NASDAQ:LNT)72Outperform
Positive Factors
Financial Performance
Management reaffirmed its guidance of $3.15-3.25, indicating confidence in future performance.
Growth Opportunities
The company reached an agreement in principle for a data center in WI, which is expected to increase load growth opportunities.
Negative Factors
Credit Metrics
Increased capital spending puts pressure on the company's long-term FFO to debt metrics.
Interest Rates
Rising interest rates are a headwind.
Valuation
Shares are at a ~9% premium, leading to a Market Perform rating despite positive developments.
Alliant Energy (LNT) vs. S&P 500 (SPY)
Market Cap
$16.04B
Dividend Yield3.12%
Average Volume (3M)2.02M
Price to Earnings (P/E)23.3
Beta (1Y)0.33
Revenue Growth-1.12%
EPS Growth-3.22%
CountryUS
Employees3,281
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)2.69
Shares Outstanding256,692,380
10 Day Avg. Volume2,507,345
30 Day Avg. Volume2,021,978
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.03
Price to Cash Flow (P/CF)15.80
P/FCF Ratio9.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.57Price Target Upside3.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Alliant Energy Business Overview & Revenue Model
Company DescriptionAlliant Energy Corporation (LNT) is a public utility holding company that operates in the energy sector, primarily focused on providing electric and natural gas services. The company serves residential, commercial, and industrial customers across several U.S. states, including Iowa and Wisconsin. Alliant Energy is committed to delivering safe, reliable, and sustainable energy solutions while investing in renewable energy sources like wind and solar to enhance its service offerings and decrease its carbon footprint.
How the Company Makes MoneyAlliant Energy makes money primarily through the generation, distribution, and sale of electricity and natural gas to its customer base. The company's revenue streams stem from the regulated utility operations, which entail charging customers for energy usage based on tariffs approved by state regulatory commissions. These tariffs are designed to ensure the company can cover its operational costs, maintain infrastructure, and earn a reasonable return on investment. Additionally, Alliant Energy benefits from various state and federal incentives for renewable energy projects, which can provide supplementary income and reduce operational costs. Investments in renewable energy projects also help in diversifying revenue streams and mitigating risks associated with traditional energy sources.
Alliant Energy Financial Statement Overview
Summary
Alliant Energy demonstrates stable financial performance with strong profitability metrics and effective cash flow management. Despite a plateau in revenue growth, the company maintains solid operating margins. The balance sheet indicates manageable debt levels, though increasing leverage requires monitoring. Overall, profitability and cash flows are stable, although revenue growth challenges remain.Income Statement
The income statement reflects moderate stability with consistent revenue figures over the years. The Gross Profit Margin and Net Profit Margin are fairly strong, showcasing operational efficiency. However, there is a noticeable decline in Total Revenue from 2022 to 2024, indicating potential market challenges or operational constraints. The EBIT and EBITDA Margins remain healthy, pointing towards effective cost management.72
Positive
Balance Sheet
The balance sheet displays a solid equity base, but there are concerns with the negative Total Assets reported in 2024, likely due to an error. The Debt-to-Equity Ratio has increased over the years, indicating higher leverage which could pose financial risk. Despite this, Return on Equity remains robust, reflecting profitability for shareholders. The Equity Ratio is healthy, suggesting a strong asset base against liabilities.65
Positive
Cash Flow
Cash flow analysis reveals positive operating cash flow trends, illustrating operational cash generation capability. The Free Cash Flow has improved significantly in 2024, turning positive after several negative years, which is a positive sign for future investments and debt repayment. However, the high variability in free cash flow growth rates suggests fluctuating investment demands or financing activities.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.96B | 3.98B | 4.03B | 4.21B | 3.67B | 3.42B | Gross Profit |
| 1.65B | 3.98B | 1.73B | 1.71B | 1.56B | 1.46B | EBIT |
| 881.00M | 886.00M | 943.00M | 928.00M | 795.00M | 740.00M | EBITDA |
| 1.64B | 1.80B | 1.75B | 1.57B | 1.44B | 1.33B | Net Income Common Stockholders |
| 695.00M | 690.00M | 703.00M | 686.00M | 674.00M | 624.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.30M | 81.00M | 62.00M | 20.00M | 39.00M | 54.00M | Total Assets |
| 16.70B | 22.71B | 21.24B | 20.16B | 18.55B | 17.71B | Total Debt |
| 6.53B | 10.41B | 9.70B | 8.72B | 7.88B | 7.17B | Net Debt |
| 6.51B | 10.32B | 9.64B | 8.70B | 7.84B | 7.11B | Total Liabilities |
| 11.30B | 15.71B | 14.46B | 13.89B | 12.56B | 11.82B | Stockholders Equity |
| 5.21B | 200.00M | 6.78B | 6.28B | 5.99B | 5.69B |
| Cash Flow | Free Cash Flow | ||||
| -216.00M | 1.17B | -987.00M | -998.00M | -587.00M | -865.00M | Operating Cash Flow |
| 675.00M | 1.17B | 867.00M | 486.00M | 582.00M | 501.00M | Investing Cash Flow |
| -908.00M | -1.55B | -1.40B | -933.00M | -728.00M | -951.00M | Financing Cash Flow |
| 237.00M | 398.00M | 573.00M | 431.00M | 130.00M | 488.00M |
Alliant Energy Technical Analysis
Positive
62.49
Price Trends
60.08
Positive
60.04
Positive
57.10
Positive
Market Momentum
1.03
Positive
52.87
Neutral
18.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNT, the sentiment is Positive. The current price of 62.49 is above the 20-day moving average (MA) of 62.44, above the 50-day MA of 60.08, and above the 200-day MA of 57.10, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNT.
Alliant Energy Risk Analysis
Alliant Energy disclosed 21 risk factors in its most recent earnings report. Alliant Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alliant Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.41B | 21.52 | 12.72% | 2.86% | 0.71% | 11.07% | |
77 Outperform | $27.05B | 19.29 | 12.32% | 3.15% | -1.13% | 0.16% | |
74 Outperform | $32.98B | 21.51 | 12.64% | 3.18% | -3.30% | 14.40% | |
72 Outperform | $16.04B | 23.26 | 10.01% | 3.12% | -1.12% | -3.22% | |
71 Outperform | $18.13B | 23.84 | 8.95% | 2.79% | -0.91% | 2.11% | |
69 Neutral | $38.87B | 19.68 | 10.43% | 3.24% | -5.25% | 7.11% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
LNT
Alliant Energy
62.49
14.61
30.51%
CMS
CMS Energy
73.08
14.48
24.71%
DTE
DTE Energy
131.68
22.69
20.82%
NI
Nisource
38.50
12.30
46.95%
WEC
WEC Energy Group
106.84
27.68
34.97%
XEL
Xcel Energy
68.00
17.05
33.46%
Alliant Energy Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.41% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance in 2024, with significant growth in earnings per share and continued dividend increases. The company also made substantial progress in renewable energy investments and economic development initiatives. However, the negative impacts of warmer temperatures and higher expenses were noted. Overall, the positive achievements outweighed the challenges.Highlights
Strong Financial Performance
Alliant Energy reported ongoing earnings of $3.04 per share for 2024, up from $2.82 per share in 2023, contributing to a compounded annual earnings growth rate of over 6% in the past decade.
Dividend Increase
2024 marked the 21st consecutive year of dividend increases for Alliant Energy.
Renewable Energy Expansion
Successfully commissioned 1.5 gigawatts of solar energy investments, adding to the existing 1.8 gigawatt wind generation fleet, enhancing leadership in regulated owned renewables.
Economic Development Success
Secured commitments with signed agreements for up to 1.9 gigawatts of data center load at the Big Cedar site in Cedar Rapids, Iowa.
Improved Cash Flows
2024 cash flows from operations increased by approximately $300 million or 35%, compared to 2023.
Cost Reduction Initiatives
Achieved $30 million less in O&M expenses compared to 2023, and completed a 5% workforce reduction for future cost savings.
Lowlights
Temperature Impacts on Earnings
Warmer winter temperatures in 2024 negatively impacted electric and gas margins, decreasing earnings by approximately $0.15 per share.
Higher Depreciation and Financing Expenses
Ongoing earnings were partially offset by higher depreciation and financing expenses related to capital investments.
Company Guidance
During Alliant Energy's Year End 2024 Earnings Conference Call, the company provided guidance for 2025, affirming an earnings guidance range of $3.15 to $3.25 per share. The company emphasized its ongoing commitment to a 5% to 7% earnings growth rate target based on ongoing 2024 earnings of $3.04 per share. Key strategic priorities include economic development and the expansion of renewable energy capacity, with the successful commissioning of 1.5 gigawatts of solar energy investments and a focus on data center load commitments. The company highlighted its ability to earn its authorized return on equity through new tax credits, energy margins, and capacity revenues, along with stable electric base rates through Iowa's approved electric rate review. Additionally, Alliant Energy is focusing on cost-effective investments, having reduced 2024 O&M expenses by approximately $30 million compared to 2023, while also achieving a 35% increase in cash flows from operations. The company plans to update its capital expenditure and financing plans in the first quarter of 2025 to reflect new growth opportunities, including economic development initiatives in Wisconsin and Iowa.Alliant Energy Corporate Events
Executive/Board Changes
Alliant Energy Appoints New Chief Accounting Officer
Neutral
Feb 11, 2025
On February 7, 2025, the Boards of Alliant Energy Corporation, Interstate Power and Light Company, and Wisconsin Power and Light Company announced the appointment of Dylan Syse as Chief Accounting Officer and Controller, effective March 2, 2025. Syse, who has been with the company since 2013, will replace the current Chief Accounting Officer, Benjamin Bilitz, who will transition to the role of Treasurer.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.