AltaGas (ALA) AI Stock Analysis

• Market Cap: $12.32B
• Dividend Yield: 2.92%
• Average Volume (3M): 798.23K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.45
• Revenue Growth: -0.68%
• EPS Growth: 49.61%
• Country: CA
• Employees: 3,045
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): 0.04
• Shares Outstanding: 299,191,900
• 10 Day Avg. Volume: 1,126,360
• 30 Day Avg. Volume: 798,233
• 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: 1.97
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 12.79
• 1Y Price Target: $46.92
• Price Target Upside: 10.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.23
• Revenue Forecast (FY): $12.95B

• Rating: 63 Neutral
• Price Target: C$43.00 ▲(1.11% Upside)

AltaGas's overall stock score is driven by a positive earnings call and fair valuation, which are offset by mixed financial performance and bearish technical indicators. The company's strategic investments and growth projects provide a positive outlook, but challenges in revenue and cash flow need to be addressed to improve financial health.

Positive Factors

New Growth Projects

The announcement of new growth projects indicates AltaGas's commitment to expanding its capacity and enhancing its market position, which is crucial for long-term growth and competitiveness.

Operational Efficiency

Strong operational performance, as indicated by the increase in EBITDA, reflects AltaGas's ability to manage costs and improve profitability, which is vital for sustainable growth.

Regulatory Advancements

Positive regulatory developments and cost reductions enhance AltaGas's operational stability and profitability, supporting long-term financial health and shareholder value.

Negative Factors

Revenue Decline

The decline in revenue growth poses a challenge to AltaGas's ability to maintain its market position and could impact future profitability if not addressed.

Cash Flow Constraints

Limited cash flow generation restricts AltaGas's ability to invest in growth opportunities and may affect its financial flexibility and resilience.

Facility Outages

Unplanned facility outages can disrupt operations and negatively impact volumes, highlighting potential risks in operational reliability and efficiency.

AltaGas Business Overview & Revenue Model

Company Description

AltaGas Ltd. operates as an energy infrastructure company in North America. The company operates through Utilities and Midstream segments. The Utilities segment owns and operates rate-regulated natural gas distribution and storage utilities in Maryland, Virginia, Delaware, Pennsylvania, Ohio, and the District of Columbia serving approximately 1.7 million customers. This segment also provides interstate natural gas transportation and storage services. The Midstream segment engages in the natural gas gathering and extraction with 1.2 billion cubic feet per day (Bcf/d) of extraction processing capacity and approximately 1.2 Bcf/d of raw field gas processing capacity; natural gas gathering and extraction business; fractionation and liquids handling business; and natural gas and natural gas liquids marketing activities. It also engages in LPG exports and distribution, logistics, trucking and rail terminals, and liquid storage businesses. In addition, the company operates gas-fired power generation and distribution assets with a generating capacity of 578 MW of power in California and Colorado. It serves residential, commercial, and industrial customers primarily in the Western Canada Sedimentary Basin. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.

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 presents a mixed financial picture. While operational efficiency is evident through healthy EBIT and EBITDA margins, declining revenue and free cash flow growth pose challenges. The balance sheet remains stable with manageable leverage, but cash flow constraints could impact future investments and growth opportunities. The company should focus on reversing revenue declines and improving cash flow generation to enhance financial health.

Income Statement

AltaGas shows a mixed performance in its income statement. The gross profit margin is relatively stable, but the net profit margin is modest at 6.21% TTM, indicating room for improvement in profitability. Revenue growth has been negative recently, with a decline of 16.3% TTM, which is concerning. However, the EBIT and EBITDA margins are healthy, suggesting efficient operations.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 1.19 TTM, indicating a balanced leverage level for the industry. Return on equity is decent at 9.27% TTM, showing effective use of equity. The equity ratio is stable, suggesting a solid asset base.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -94.52% TTM. The operating cash flow to net income ratio is below 1, indicating potential issues in cash generation relative to earnings. The free cash flow to net income ratio is low, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.65B	12.45B	12.89B	14.39B	10.63B	5.64B
Gross Profit	2.88B	2.76B	2.26B	2.81B	2.46B	2.02B
EBITDA	1.90B	1.62B	1.70B	1.48B	1.41B	1.34B
Net Income	799.00M	596.00M	673.00M	523.00M	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: 42.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 42.53 is above the 20-day moving average (MA) of 41.98, above the 50-day MA of 41.99, and above the 200-day MA of 38.82, indicating a bullish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 59.36 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
NVA	74 Outperform	$3.49B	10.42	14.64%	―	-9.78%	5.12%
KEY	72 Outperform	C$9.28B	17.49	18.92%	5.13%	1.57%	55.82%
SPB	68 Neutral	C$1.77B	21.11	6.30%	2.25%	6.01%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ALA	63 Neutral	$12.32B	16.49	9.01%	2.92%	-0.68%	49.61%
PKI	60 Neutral	C$6.96B	20.68	10.45%	3.59%	-4.80%	39.16%
GEI	59 Neutral	C$3.78B	25.06	16.47%	7.32%	-12.18%	-29.17%

AltaGas Corporate Events

AltaGas Ltd. Reports Q3 2025 Results and Growth Plans

AltaGas Ltd. is a North American infrastructure company that operates in the utilities and midstream sectors, providing energy solutions through its diversified portfolio. The company recently announced its third-quarter 2025 financial results, highlighting several strategic developments and investment decisions aimed at bolstering its growth trajectory.

AltaGas Reports Q3 2025 Results and Announces New Growth Projects

AltaGas reported a decline in its third quarter 2025 financial results, with a decrease in normalized EPS and EBITDA compared to the previous year, primarily due to the absence of certain pension plan settlements. However, the Midstream segment showed a 13% increase in normalized EBITDA driven by stronger export volumes and improved performance at its natural gas storage asset. The company announced positive final investment decisions on several growth projects, including the Ridley Island Energy Export Facility Optimization and the Keweenaw Connector Pipeline, aimed at enhancing throughput capacity and gas delivery, respectively. These projects are expected to bolster AltaGas’ operational capabilities and market position in the coming years.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas to Announce Q3 2025 Financial Results

AltaGas Ltd. announced it will release its third quarter 2025 financial results on October 30, 2025, before the market opens. The company will also hold a conference call and webcast on the same day to discuss the financial results and other corporate developments, indicating its commitment to transparency and stakeholder engagement.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas Appoints Industry Veteran Bill Bullock to Board of Directors

AltaGas Ltd. has appointed Bill Bullock as a new Independent Director, effective October 1, 2025. With nearly four decades of experience in the energy sector, Bullock brings extensive expertise in global operations and various energy markets. His appointment is expected to enhance the company’s strategic focus and value creation for shareholders.

The most recent analyst rating on (TSE:ALA) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas Closes $200 Million Hybrid Note Offering for Financial Efficiency

AltaGas announced the closing of its $200 million hybrid note offering, which will be used to redeem or repurchase its outstanding preferred shares. This strategic financial move is expected to result in approximately $30 million in cash savings over five years due to lower taxes and financing charges, enhancing the company’s financial efficiency and benefiting stakeholders.

The most recent analyst rating on (TSE:ALA) stock is a Hold with a C$44.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas Announces $200 Million Hybrid Note Offering

AltaGas Ltd. announced a $200 million offering of 5.375% Fixed-to-Fixed Rate Junior Subordinated Notes, Series 4, due in 2055. The proceeds from this offering will be used to redeem or repurchase existing preferred shares, enhancing the company’s financial structure and potentially impacting its market positioning positively.

The most recent analyst rating on (TSE:ALA) stock is a Hold with a C$44.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.

AltaGas to Redeem All Outstanding Preferred Shares

AltaGas Ltd., a company listed on the Toronto Stock Exchange, has announced its intention to redeem all outstanding Series A and Series B preferred shares by September 30, 2025. This redemption will involve a total payout of $200 million, with a final dividend payment scheduled for September 29, 2025. The move is part of AltaGas’s strategic financial management, potentially impacting its capital structure and shareholder value.

The most recent analyst rating on (TSE:ALA) stock is a Hold with a C$45.00 price target. To see the full list of analyst forecasts on AltaGas stock, see the TSE:ALA Stock Forecast page.