AltaGas (ALA) AI Stock Analysis

• Market Cap: $12.35B
• Dividend Yield: 2.95%
• Average Volume (3M): 625.32K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.60
• Revenue Growth: -1.95%
• EPS Growth: 78.65%
• Country: CA
• Employees: 3,045
• Sector: Energy
• Sector Strength: 67
• Industry: Regulated Gas
• EPS (TTM): 0.27
• Shares Outstanding: 299,191,900
• 10 Day Avg. Volume: 798,175
• 30 Day Avg. Volume: 625,320
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 11.69
• 1Y Price Target: $44.62
• Price Target Upside: 7.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: C$44.00 ▲(6.13% Upside)

AltaGas's overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and earnings call insights. The strong earnings call performance and fair valuation are significant positives, while mixed financial performance and neutral technical indicators present challenges. The company's strategic focus on growth and operational efficiency supports its long-term potential.

Positive Factors

Financial Performance

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

Growth Strategy

Organic and dividend growth for AltaGas remains robust, with cash flows becoming more secure over time.

Negative Factors

Debt Management

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

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.

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 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.

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	12.87B	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: 41.46
• 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 41.46 is above the 20-day moving average (MA) of 41.41, above the 50-day MA of 40.45, and above the 200-day MA of 37.06, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.67 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
ALA	66 Neutral	$12.35B	15.80	9.15%	2.95%	-1.95%	78.65%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
GBNXF	―	$3.08B	27.08	17.22%	6.35%	―	―
NUVSF	―	$2.09B	8.48	14.64%	―	―	―
KEY	73 Outperform	C$10.13B	19.09	18.92%	4.69%	1.57%	55.82%
SPB	66 Neutral	C$1.67B	19.91	6.30%	4.19%	6.01%	―
PKI	65 Neutral	C$6.75B	22.54	9.44%	3.67%	-10.91%	-21.14%

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.