AltaGas (ALA) AI Stock Analysis

• Market Cap: $12.22B
• Dividend Yield: 3.03%
• Average Volume (3M): 582.80K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.65
• Revenue Growth: 2.27%
• EPS Growth: -9.19%
• Country: CA
• Employees: 3,045
• Sector: Energy
• Sector Strength: 45
• Industry: Regulated Gas
• EPS (TTM): 1.14
• Shares Outstanding: 299,180,200
• 10 Day Avg. Volume: 682,119
• 30 Day Avg. Volume: 582,802
• PEG Ratio: -5.76
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 82.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $44.00
• Price Target Upside: 8.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: C$41.00 ▲(1.56%Upside)

AltaGas' overall score is supported by strong financial performance and positive corporate events. Technical analysis suggests a cautious stance, with the valuation indicating fair pricing. The earnings call reflected strong operational performance but highlighted some financial challenges and market uncertainties.

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.

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 a combination of regulated and non-regulated business activities. In the Utilities sector, the company earns income by distributing natural gas to customers and charging them for the consumption based on approved tariffs and rates set by regulatory bodies. This provides a stable and predictable revenue stream. In the Midstream sector, AltaGas makes money by processing natural gas to extract valuable NGLs, transporting gas and NGLs through pipelines, and marketing them to various wholesale and retail customers. Additionally, AltaGas engages in crude oil export activities, which includes using its infrastructure to connect Canadian oil producers with international markets. The company's earnings are bolstered by strategic partnerships with other energy firms, long-term contracts, and its diversified asset base that spans multiple regions.

AltaGas Financial Statement Overview

Summary

AltaGas demonstrates strong financial performance with consistent revenue growth, stable profit margins, and robust cash flow generation. The balance sheet is solid with manageable leverage, supporting ongoing financial obligations and growth investments.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.45B	13.00B	14.09B	10.57B	5.59B
Gross Profit	3.25B	2.88B	2.95B	2.87B	2.41B
EBITDA	1.62B	1.70B	1.48B	1.41B	1.34B
Net Income	596.00M	673.00M	399.00M	283.00M	552.00M
Balance Sheet
Total Assets	26.09B	23.47B	23.96B	21.59B	21.53B
Cash, Cash Equivalents and Short-Term Investments	85.00M	95.00M	53.00M	63.00M	32.00M
Total Debt	10.57B	9.88B	10.17B	8.71B	8.64B
Total Liabilities	17.05B	15.61B	16.35B	13.99B	13.87B
Stockholders Equity	8.75B	7.71B	7.46B	6.95B	7.04B
Cash Flow
Free Cash Flow	149.00M	178.00M	-419.00M	-76.00M	-70.00M
Operating Cash Flow	1.54B	1.12B	539.00M	738.00M	773.00M
Investing Cash Flow	-1.38B	-199.00M	-997.00M	-483.00M	-1.21B
Financing Cash Flow	-175.00M	-882.00M	435.00M	-245.00M	392.00M

AltaGas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 40.37 is above the 20-day moving average (MA) of 39.15, above the 50-day MA of 38.39, and above the 200-day MA of 35.78, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, 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	67 Neutral	$12.22B	21.68	6.56%	3.03%	2.27%	-9.19%
Sector *	52 Neutral	C$2.95B	-1.51	-3.48%	6.73%	2.89%	-49.51%
GBNXF	―	$2.97B	25.30	17.23%	0.30%	―	―
NUVSF	―	$2.04B	7.52	16.78%	―	―	―
KEY	78 Outperform	C$10.13B	18.54	19.55%	4.76%	8.00%	52.89%
PKI	72 Outperform	C$6.74B	34.34	6.21%	3.72%	-9.79%	-49.13%
SPB	64 Neutral	C$1.67B	33.81	2.90%	0.55%	5.71%	320.62%

AltaGas Corporate Events

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.

AltaGas Confirms Board of Directors Election Results

AltaGas Ltd. announced the successful election of its board of directors during the 2025 Annual and Special Meeting of Shareholders. All management-recommended nominees were elected, indicating strong shareholder support and stability in the company’s governance, which is crucial for maintaining its strategic direction and growth in the energy infrastructure sector.

AltaGas Reports Strong Q1 2025 Results and Exceeds Export Targets

AltaGas Ltd. reported strong financial results for the first quarter of 2025, with a notable increase in normalized EBITDA driven by robust performance in its Utilities segment. The company achieved record global export volumes of LPGs to Asia and continued to secure long-term contracts, surpassing its 2027 tolling target. Despite a decrease in Midstream segment earnings due to lower export margins and the absence of one-time items from the previous year, AltaGas maintained a positive outlook for long-term growth.