AltaGas (ALA) AI Stock Analysis

• Market Cap: $12.50B
• Dividend Yield: 2.93%
• Average Volume (3M): 610.29K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.62
• Revenue Growth: -1.95%
• EPS Growth: 78.65%
• Country: CA
• Employees: 3,045
• Sector: Energy
• Sector Strength: 48
• Industry: Regulated Gas
• EPS (TTM): 0.27
• Shares Outstanding: 299,191,900
• 10 Day Avg. Volume: 558,614
• 30 Day Avg. Volume: 610,289
• PEG Ratio: -1.18
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 66.69
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 11.69
• 1Y Price Target: $44.55
• Price Target Upside: 7.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: C$46.00 ▲(11.46% Upside)

AltaGas's overall stock score of 73 reflects a strong earnings call performance and positive technical indicators, which are the most significant factors. The company's financial performance shows operational efficiency but is challenged by declining revenue and cash flow. The valuation is fair, supporting a stable investment outlook. Positive sentiment from strategic advancements and project progress further enhances the score.

Positive Factors

Financial Performance

AltaGas has delivered strong Q4 results, exceeding guidance for the sixth consecutive year.

Market Reaction

The market reacted positively to AltaGas's results, with shares rising 3.5% likely due to enthusiasm about a potential sale and positive data center commentary.

Negative Factors

Debt Management

AltaGas maintains a focus on debt reduction driven by self-funded organic growth and attractive relative valuation.

Earnings Protection

AltaGas is highly hedged on global LPG exports and frac spreads, protecting earnings and EBITDA downside.

AltaGas Business Overview & Revenue Model

Company Description

AltaGas Ltd. is a North American energy infrastructure company based in Calgary, Alberta. The company operates in three primary segments: Gas, Power, and Utilities. AltaGas is involved in the gathering, processing, storage, and transportation of natural gas, as well as the generation and distribution of electricity. It also provides utility services such as natural gas and electricity distribution to residential, commercial, and industrial customers. With a focus on sustainable energy solutions, AltaGas is committed to delivering reliable energy products while minimizing its environmental impact.

How the Company Makes Money

AltaGas generates revenue through multiple key streams. The Gas segment earns income by providing natural gas gathering, processing, and transmission services, as well as through the sale of processed natural gas. The Power segment contributes revenue from electricity generation and wholesale power sales, particularly from its renewable energy assets. The Utilities segment derives income from regulated rates for the distribution of natural gas and electricity to end-users. Additionally, AltaGas benefits from long-term contracts and strategic partnerships with other energy companies, which provide stable cash flows and enhance its market position. Factors such as regulatory frameworks, commodity prices, and operational efficiencies also significantly influence the company's earnings.

AltaGas Financial Statement Overview

Summary

AltaGas shows strong financial performance with consistent revenue growth, a stable balance sheet, and positive cash flow. The income statement reflects robust gross profit margins and stable net profit margins. The balance sheet indicates reasonable leverage, and the cash flow analysis shows healthy cash conversion despite some volatility.

Income Statement

AltaGas exhibits strong income statement performance with consistent revenue growth, though recent periods show a slight decline. Gross profit margins are robust, and the company maintains healthy EBIT and EBITDA margins. The net profit margin is stable, reflecting good cost control despite competitive pressures.

Balance Sheet

The balance sheet reveals a solid equity base with a moderate debt-to-equity ratio, indicating reasonable leverage. Return on equity is decent, showing effective use of equity capital, while the equity ratio suggests a stable asset base with sufficient shareholder equity.

Cash Flow

Cash flow analysis indicates positive free cash flow growth, although fluctuations in operating cash flow and capital expenditures are observed. The operating cash flow to net income ratio is healthy, showing efficient cash conversion from profits, albeit slight volatility in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.87B	12.45B	13.00B	14.09B	10.57B	5.59B
Gross Profit	3.47B	3.25B	2.88B	2.95B	2.87B	2.41B
EBITDA	1.94B	1.68B	1.70B	1.48B	1.41B	1.34B
Net Income	799.00M	596.00M	673.00M	399.00M	283.00M	552.00M
Balance Sheet
Total Assets	25.27B	26.09B	23.47B	23.96B	21.59B	21.53B
Cash, Cash Equivalents and Short-Term Investments	320.00M	85.00M	95.00M	53.00M	63.00M	32.00M
Total Debt	10.28B	10.57B	9.88B	10.17B	8.71B	8.64B
Total Liabilities	16.20B	17.05B	15.61B	16.35B	13.99B	13.87B
Stockholders Equity	8.62B	8.75B	7.71B	7.46B	6.95B	7.04B
Cash Flow
Free Cash Flow	8.00M	149.00M	178.00M	-419.00M	-76.00M	-70.00M
Operating Cash Flow	1.52B	1.54B	1.12B	539.00M	738.00M	773.00M
Investing Cash Flow	-1.45B	-1.38B	-199.00M	-997.00M	-483.00M	-1.21B
Financing Cash Flow	198.00M	-175.00M	-882.00M	435.00M	-245.00M	392.00M

AltaGas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALA, the sentiment is Positive. The current price of 41.27 is above the 20-day moving average (MA) of 40.52, above the 50-day MA of 39.25, and above the 200-day MA of 36.24, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 62.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALA.

AltaGas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	78 Outperform	C$9.93B	18.72	18.92%	4.80%	1.57%	55.82%
NVA	74 Outperform	$2.80B	8.27	14.64%	―	-9.78%	5.12%
ALA	73 Outperform	$12.50B	15.99	9.15%	2.93%	-1.95%	78.65%
PKI	70 Outperform	C$6.65B	22.30	9.44%	3.74%	-10.91%	-21.14%
GEI	68 Neutral	$4.15B	26.02	17.22%	6.60%	-14.27%	-11.69%
SPB	64 Neutral	C$1.55B	31.56	2.90%	4.57%	5.71%	320.62%
Sector *	56 Neutral	C$4.16B	2.25	16.25%	5.63%	6.44%	-50.90%

AltaGas Corporate Events

AltaGas Reports Strong Q2 2025 Results with Record LPG Exports

AltaGas reported strong financial results for the second quarter of 2025, with a significant increase in earnings and EBITDA driven by robust performance in its Midstream and Utilities segments. The company achieved record LPG export volumes and secured long-term agreements with major partners, enhancing its global export capabilities and strengthening its market position. These developments indicate a positive impact on AltaGas’ operations and industry positioning, with potential benefits for stakeholders through increased capacity and strategic partnerships.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

BASF and AltaGas Forge Long-Term Butane Supply Agreement

BASF and AltaGas have signed a long-term agreement for the supply of butane, set to commence in 2027, through the Ridley Island Energy Export Facility in British Columbia. This partnership will diversify BASF’s cracker feedstock portfolio, enhancing its supply chain resilience and supporting its growth in Asia. For AltaGas, the agreement de-risks its export platform by adding BASF as a high-quality counterparty, reinforcing the strategic value of its west coast LPG export operations.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas to Announce Q2 2025 Financial Results

AltaGas Ltd. announced that it will release its second quarter 2025 financial results on August 1, 2025, before the market opens. A conference call and webcast will follow to discuss the results and other corporate developments, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas Secures Expanded LPG Export Agreement with Keyera

AltaGas has announced a new long-term tolling agreement with Keyera Corp., which will see an additional 12,500 barrels per day of liquified petroleum gases flow through AltaGas’ west coast export facilities starting in 2028. This agreement, which builds on a previous contract, increases Keyera’s total LPG export capacity to 25,000 barrels per day, aimed at accessing premium markets in Asia. The deal underscores AltaGas’ strategic focus on market diversification and leveraging its global exports platform to mitigate tariff impacts and connect Canadian energy products to high-value global markets. Construction on the Ridley Island Energy Export Facility is progressing, with significant milestones achieved, further de-risking the project execution.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.