tiprankstipranks
Trending News
More News >
Alliant Energy (LNT)
NASDAQ:LNT

Alliant Energy (LNT) AI Stock Analysis

Compare
462 Followers

Top Page

LN

Alliant Energy

(NASDAQ:LNT)

74Outperform
Alliant Energy shows strong financial performance with steady revenue and profit growth. The strategic focus on data centers and renewable energy investments supports future growth, although moderate leverage and potential legislative risks require attention. Technical indicators suggest stability but caution with slight bearish momentum. The valuation is fair, supported by a reasonable P/E ratio and a good dividend yield.
Positive Factors
Capital Expenditure
The company increased its expected capital expenditure to include peak data center demand, leading to a forecasted capex of $11.5 billion.
Earnings
LNT reported Q1 EPS of $0.83, surpassing the consensus estimate of $0.70, primarily driven by new rates at IPL and WPL.
Growth Potential
Alliant Energy has a growing customer pipeline, with significant additions expected to support future growth.
Negative Factors
Financing Costs
The loss of transferability under the Inflation Reduction Act may force the company to revert to tax equity, potentially increasing financing costs.
Regulatory Concerns
Concerns about the potential impacts of an IRA repeal on financial metrics and the possible need for alternative financing tools.

Alliant Energy (LNT) vs. S&P 500 (SPY)

Alliant Energy Business Overview & Revenue Model

Company DescriptionAlliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. As of December 31, 2021, IPL supplied electric and natural gas service to approximately 500,000 and 225,000 retail customers respectively; and WPL supplied electric and natural gas service to approximately 485,000 and 200,000 retail customers, respectively. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, and packaging and food industries. In addition, the company owns and operates a short-line rail freight service in Iowa; a barge, rail, and truck freight terminal on the Mississippi River; and a rail-served warehouse in Iowa, as well as offers freight brokerage services. Further, it holds interests in a 347 megawatt (MW) natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a 225 MW wind farm located in Oklahoma. The company was incorporated in 1981 and is headquartered in Madison, Wisconsin.
How the Company Makes MoneyAlliant Energy makes money primarily through the generation, distribution, and sale of electricity and natural gas to its customer base. The company's revenue streams stem from the regulated utility operations, which entail charging customers for energy usage based on tariffs approved by state regulatory commissions. These tariffs are designed to ensure the company can cover its operational costs, maintain infrastructure, and earn a reasonable return on investment. Additionally, Alliant Energy benefits from various state and federal incentives for renewable energy projects, which can provide supplementary income and reduce operational costs. Investments in renewable energy projects also help in diversifying revenue streams and mitigating risks associated with traditional energy sources.

Alliant Energy Financial Statement Overview

Summary
Alliant Energy demonstrates solid revenue growth, robust profit margins, and effective cash flow management. The moderate leverage is a potential risk area but is counterbalanced by consistent profitability and cash generation.
Income Statement
82
Very Positive
Alliant Energy demonstrates solid revenue growth with a TTM (Trailing-Twelve-Months) increase to $4.079 billion from $3.981 billion in 2024, reflecting a stable growth trend. The gross profit margin is robust at 45.0%, and the net profit margin stands at 18.3%, indicating effective cost management and profitability. However, EBIT and EBITDA margins have slightly decreased, suggesting potential operational cost pressures.
Balance Sheet
78
Positive
The company's debt-to-equity ratio is 1.50, which indicates moderate leverage compared to industry norms. The return on equity is healthy at 10.5%, showcasing effective utilization of shareholders' funds. However, the equity ratio is lower at 31.0%, suggesting a high reliance on debt financing. The balance sheet remains stable but could benefit from reduced leverage.
Cash Flow
76
Positive
Alliant Energy shows strong operating cash flow coverage with a ratio of 1.49 against net income, indicating solid cash generation from operations. Free cash flow growth is negative, reflecting high capital expenditures, but the free cash flow to net income ratio is positive at 1.49, highlighting sufficient cash available to support dividend payments and debt servicing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.08B3.98B4.03B4.21B3.67B3.42B
Gross Profit
1.84B1.78B1.73B1.71B1.56B1.46B
EBIT
921.00M886.00M943.00M928.00M795.00M740.00M
EBITDA
1.85B1.80B1.75B1.57B1.44B1.33B
Net Income Common Stockholders
745.00M690.00M703.00M686.00M674.00M624.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
32.00M81.00M62.00M20.00M39.00M54.00M
Total Assets
21.25B22.71B21.24B20.16B18.55B17.71B
Total Debt
9.67B10.41B9.70B8.72B7.88B7.17B
Net Debt
9.63B10.32B9.64B8.70B7.84B7.11B
Total Liabilities
14.43B15.71B14.46B13.89B12.56B11.82B
Stockholders Equity
6.82B7.00B6.78B6.28B5.99B5.69B
Cash FlowFree Cash Flow
1.11B1.17B-987.00M-998.00M-587.00M-865.00M
Operating Cash Flow
1.11B1.17B867.00M486.00M582.00M501.00M
Investing Cash Flow
-1.60B-1.55B-1.40B-933.00M-728.00M-951.00M
Financing Cash Flow
479.00M398.00M573.00M431.00M130.00M488.00M

Alliant Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.48
Price Trends
50DMA
61.45
Positive
100DMA
60.48
Positive
200DMA
59.37
Positive
Market Momentum
MACD
0.07
Negative
RSI
57.49
Neutral
STOCH
70.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNT, the sentiment is Positive. The current price of 62.48 is above the 20-day moving average (MA) of 60.84, above the 50-day MA of 61.45, and above the 200-day MA of 59.37, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNT.

Alliant Energy Risk Analysis

Alliant Energy disclosed 22 risk factors in its most recent earnings report. Alliant Energy reported the most risks in the โ€œProductionโ€ category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Alliant Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LNLNT
74
Outperform
$16.05B21.2910.71%3.16%2.46%5.66%
CMCMS
71
Outperform
$21.38B20.9812.53%2.92%5.87%3.59%
EIEIX
71
Outperform
$22.56B8.1717.93%5.58%5.36%209.92%
FEFE
70
Neutral
$24.63B22.588.69%3.98%7.92%1.54%
PNPNW
68
Neutral
$10.95B17.989.08%3.87%10.69%12.37%
64
Neutral
$15.40B17.318.95%3.91%5.53%23.00%
63
Neutral
$8.53B10.184.66%4.38%3.77%-12.97%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LNT
Alliant Energy
62.48
12.41
24.79%
CMS
CMS Energy
71.47
10.62
17.45%
EIX
Edison International
58.63
-14.07
-19.35%
FE
FirstEnergy
42.68
4.25
11.06%
PNW
Pinnacle West Capital
91.74
16.84
22.48%
EVRG
Evergy
66.93
13.55
25.38%

Alliant Energy Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 2.24%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to fiscal 2025 with significant growth in demand and strategic planning, particularly in data centers and capital expenditures. However, there are concerns about weather impacts and potential legislative changes affecting future costs.
Q1-2025 Updates
Positive Updates
Strong Start to Fiscal 2025
First quarter 2025 earnings of $0.83 per share, up from $0.62 per share in the first quarter of 2024, despite warmer-than-normal temperatures impacting sales.
Significant Growth in Demand
Fully executed energy service agreements (ESAs) totaling 2.1 gigawatts of demand, representing a greater than 30% increase in peak demand.
Updated Capital Expenditure Plan
CapEx plan for 2025 through 2028 increased by approximately $600 million, translating into a 2024 to 2028 forecasted investment CAGR of nearly 11%.
Data Center Agreements
Continued momentum with data center agreements, including an additional 800 megawatts of demand, contributing to economic development.
Safe Harboring Strategy
100% of the renewable and energy storage CapEx in the plan is safe harbored through 2028, mitigating risks related to policy changes.
Negative Updates
Impact of Warmer Temperatures
Warmer-than-normal temperatures decreased electric and gas margins by 3ยข per share in the first quarter of 2025.
Potential Legislative Risks
Concerns about the potential repeal or scaling back of the Inflation Reduction Act, which could increase costs for customers.
Higher Depreciation and Financing Expenses
Partially offsetting positive earnings drivers were higher depreciation and financing expenses.
Company Guidance
During the Alliant Energy Corporation's First Quarter 2025 Earnings Conference Call, the company reaffirmed its 2025 earnings guidance range of $3.15 to $3.25 per share, following a strong start to the year with first-quarter earnings of $0.83 per share, up from $0.62 in the same quarter of 2024. Alliant Energy outlined its capital expenditure plans, highlighting a 26% increase from 18 months ago, translating to a projected investment CAGR of nearly 11% from 2024 to 2028. The updated CapEx plan includes substantial investments in new natural gas resources and renewable energy, with an additional $600 million added since the November 2024 update. The company emphasized its commitment to fostering economic development, announcing energy service agreements with data centers totaling 2.1 gigawatts, representing a 30% increase in peak demand. Alliant Energy also detailed its financing strategy, which includes $1.4 billion in new common equity issuances by 2028, with a significant portion of its tax credits safe harbored to minimize exposure to legislative changes.

Alliant Energy Corporate Events

Private Placements and Financing
Alliant Energy Completes $575M Convertible Notes Sale
Neutral
May 15, 2025

On May 15, 2025, Alliant Energy Corporation completed the sale of $575 million in Convertible Senior Notes due 2028, including a $75 million option for additional notes. This strategic financial move is aimed at refinancing debt and supporting corporate purposes, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (LNT) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Alliant Energy stock, see the LNT Stock Forecast page.

Spark’s Take on LNT Stock

According to Spark, TipRanks’ AI Analyst, LNT is a Neutral.

Alliant Energy presents a stable financial outlook with strong profitability and improving cash flows. Technical indicators suggest short-term bearish trends, but the valuation remains attractive with a fair P/E ratio and solid dividend yield. The recent earnings call highlighted strategic growth initiatives but also noted potential risks such as legislative changes and climate impacts. Overall, the company is positioned well but faces challenges that require strategic attention.

To see Spark’s full report on LNT stock, click here.

Private Placements and Financing
Alliant Energy Enters $1.3 Billion Stock Distribution Deal
Neutral
May 9, 2025

On May 9, 2025, Alliant Energy Corporation entered into a distribution agreement with several financial institutions to sell up to $1.3 billion of its common stock. The proceeds from these sales are intended for general corporate purposes, including debt management and capital expenditures, potentially impacting the company’s financial flexibility and market positioning.

Spark’s Take on LNT Stock

According to Spark, TipRanks’ AI Analyst, LNT is a Outperform.

Alliant Energy’s stock is supported by strong earnings growth and a stable financial base, despite revenue challenges and increased leverage. The company benefits from focused renewable energy strategies and economic development, balanced by fair valuation metrics.

To see Spark’s full report on LNT stock, click here.

Executive/Board Changes
Alliant Energy Announces Leadership Transition with New Chair
Neutral
Mar 10, 2025

On March 7, 2025, John O. Larsen announced his retirement as Chairman of the Board and member of the Boards of Alliant Energy and its subsidiaries, effective after the 2025 Annual Meeting of Shareowners. Patrick E. Allen, a board member since 2011, has been designated to succeed Larsen as Board Chair, signaling a leadership transition within the company.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.