AltaGas (ALA) AI Stock Analysis

• Market Cap: $12.30B
• Dividend Yield: 3.07%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.38
• 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: 299,486,180
• 10 Day Avg. Volume: 1,511,243
• 30 Day Avg. Volume: 1,067,708
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $47.30
• Price Target Upside: 15.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $13.01B

• Rating: 64 Neutral
• Price Target: C$44.00 ▲(7.11% Upside)

AltaGas's overall stock score is driven by a positive earnings call and reasonable valuation. The company's strategic investments and growth projects enhance its future potential. However, challenges in financial performance, particularly in revenue growth and leverage, and neutral technical indicators slightly offset these strengths.

Positive Factors

Strategic Investments

The announcement of new growth projects reflects AltaGas's commitment to expanding its infrastructure and capacity, which can enhance long-term revenue potential and market position.

Operational Performance

Strong operational performance, as evidenced by significant EBITDA growth, indicates efficient management and the ability to capitalize on market opportunities, supporting sustainable profitability.

Regulatory Advancements

Positive regulatory developments can lead to improved cost structures and enhanced profitability, providing a stable environment for future growth and investment.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting long-term financial performance and strategic goals.

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in volatile markets, potentially affecting the company's ability to invest in growth opportunities.

Cash Generation Efficiency

Limited cash flow relative to net income suggests challenges in converting earnings into cash, which could constrain investment capacity and operational agility.

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 primarily through its three segments: Gas, Power, and Utilities. In the Gas segment, the company earns income from the gathering, processing, and transportation of natural gas, along with fee-based contracts, which provide a stable revenue stream. The Power segment contributes through the sale of electricity generated from its power plants, including both renewable and conventional energy sources. In the Utilities segment, AltaGas earns revenues by providing utility services to customers, which typically include regulated returns on invested capital. Key partnerships with other energy producers and utility companies enhance its operational capabilities and market reach. Additionally, the company benefits from long-term contracts and regulatory frameworks that support predictable cash flows.

AltaGas Financial Statement Overview

Summary

AltaGas shows mixed financial performance. While EBIT and EBITDA margins are healthy, indicating operational efficiency, the company faces challenges with declining revenue and free cash flow growth. The balance sheet is stable with manageable leverage, but cash flow constraints could impact future investments.

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	12.50B	12.45B	12.89B	14.39B	10.63B	5.64B
Gross Profit	2.92B	2.76B	2.26B	2.81B	2.46B	2.02B
EBITDA	1.87B	1.62B	1.70B	1.48B	1.41B	1.34B
Net Income	768.00M	596.00M	673.00M	523.00M	283.00M	552.00M
Balance Sheet
Total Assets	25.97B	26.09B	23.47B	23.96B	21.59B	21.53B
Cash, Cash Equivalents and Short-Term Investments	120.00M	85.00M	95.00M	53.00M	63.00M	32.00M
Total Debt	10.77B	10.57B	9.88B	10.17B	8.71B	8.64B
Total Liabilities	16.88B	17.05B	15.61B	16.35B	13.99B	13.87B
Stockholders Equity	8.52B	8.75B	7.71B	7.46B	6.95B	7.04B
Cash Flow
Free Cash Flow	9.00M	149.00M	178.00M	-419.00M	-76.00M	-70.00M
Operating Cash Flow	1.53B	1.54B	1.12B	539.00M	738.00M	773.00M
Investing Cash Flow	-1.42B	-1.38B	-199.00M	-997.00M	-483.00M	-1.21B
Financing Cash Flow	-766.00M	-175.00M	-882.00M	435.00M	-245.00M	392.00M

AltaGas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.08
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 41.08 is below the 20-day moving average (MA) of 41.85, below the 50-day MA of 41.97, and above the 200-day MA of 39.81, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALA.

AltaGas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEI	68 Neutral	C$4.15B	27.48	16.47%	6.72%	-12.18%	-29.17%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PSK	65 Neutral	C$6.23B	28.72	8.16%	3.85%	-1.59%	0.09%
ALA	64 Neutral	$12.30B	16.45	9.01%	3.07%	-0.68%	49.61%
KEY	64 Neutral	C$9.92B	23.01	15.28%	4.90%	-4.09%	-3.57%
SPB	54 Neutral	C$1.58B	79.46	2.49%	2.54%	6.58%	9.33%
BIPC	54 Neutral	C$8.39B	-42.22	―	4.57%	3.29%	76.89%

AltaGas Corporate Events

AltaGas Announces Dividend Increase and 2026 Strategic Guidance

AltaGas announced a six percent increase in its common share dividend and provided its 2026 guidance, highlighting an 8 percent growth in normalized EBITDA and a 6 percent growth in normalized EPS. The company plans a $1.6 billion capital program for 2026, with significant investments in utilities and midstream projects, aiming to enhance operational efficiency and expand its service offerings. AltaGas remains committed to maintaining a strong investment-grade balance sheet, with positive credit outlooks from Fitch and S&P, reflecting its stable utility cash flows and strategic growth initiatives.

AltaGas Activates Contingency Plan Amid Labour Disruption at RIPET

AltaGas has activated its contingency plan to maintain uninterrupted operations at the Ridley Island Propane Export Terminal amid a pending labour strike by the International Longshore and Warehouse Union Local 523B. The company has implemented measures to ensure consistent export operations and expects minimal financial impact, reiterating its 2025 full-year guidance. RIPET is crucial for Canadian propane exports to Asia, enhancing energy security and market diversification, and AltaGas’s actions aim to sustain Canada-Asia trading relations.

AltaGas Completes $500 Million Note Offering to Strengthen Financial Position

AltaGas Ltd. has successfully closed a $500 million issuance of senior unsecured medium-term notes with a 3.025 percent coupon rate, maturing in 2027. The proceeds will be used to repay existing debts, fund working capital, and support general corporate purposes, potentially strengthening AltaGas’s financial position and operational flexibility.

AltaGas Secures $460 Million Financing, Retains MVP Ownership for Growth

AltaGas Ltd. has successfully closed a $460 million equity financing deal, which will be used to reduce leverage and fund future growth projects. The company has decided to retain its ownership in the Mountain Valley Pipeline (MVP) as a long-term investment, which is expected to enhance shareholder value through strong project-level returns and improved credit metrics. This strategic decision has led to positive credit rating outlooks from S&P and Fitch, reflecting AltaGas’ improved financial position and growth prospects.

AltaGas Announces $500 Million Medium-Term Note Offering

AltaGas Ltd. has announced a $500 million issuance of senior unsecured medium-term notes with a 3.025 percent coupon rate, maturing in November 2027. The proceeds will be used to repay existing debt, fund working capital, and support general corporate purposes, potentially strengthening the company’s financial position and operational flexibility.

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.

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.

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.