AltaGas (ALA) AI Stock Analysis

• Market Cap: $11.51B
• Dividend Yield: 3.28%
• Average Volume (3M): 652.68K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.70
• Revenue Growth: 2.27%
• EPS Growth: -9.19%
• Country: CA
• Employees: 3,045
• Sector: Energy
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 1.14
• Shares Outstanding: 299,180,200
• 10 Day Avg. Volume: 481,342
• 30 Day Avg. Volume: 652,679
• PEG Ratio: 0.23
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.68
• 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: $42.61
• Price Target Upside: 10.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: C$41.00 ▲(6.58%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 diversified model comprising three key segments. In the Midstream segment, the company earns money by processing, transporting, and storing natural gas and natural gas liquids (NGLs). This involves fee-based contracts, where AltaGas charges fees for these services, providing stable cash flows. In the Utilities segment, revenue is derived from the distribution of natural gas to residential, commercial, and industrial customers through regulated utility operations, primarily in Canada and the United States. These operations are subject to regulation, which ensures a steady income stream through set rates approved by regulatory bodies. Finally, in the Power segment, AltaGas makes money by generating and selling electricity. The company owns and operates renewable power assets, including hydroelectric and wind power facilities, and sells the generated power through power purchase agreements and on the wholesale market. Strategic partnerships and long-term contracts with utility companies and other energy firms play a significant role in stabilizing and enhancing AltaGas's revenue streams.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.89B	12.45B	13.00B	14.09B	10.57B	5.59B
	Gross Profit
3.16B	3.25B	2.88B	2.95B	2.87B	2.41B
	EBIT
1.26B	1.09B	1.39B	1.03B	711.00M	746.00M
	EBITDA
1.67B	1.62B	1.70B	1.48B	1.41B	1.34B
	Net Income Common Stockholders
581.00M	596.00M	673.00M	399.00M	283.00M	552.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
197.00M	85.00M	95.00M	53.00M	63.00M	32.00M
	Total Assets
26.16B	26.09B	23.47B	23.96B	21.59B	21.53B
	Total Debt
10.40B	10.57B	9.88B	10.17B	8.71B	8.64B
	Net Debt
10.20B	10.48B	9.78B	10.12B	8.64B	8.61B
	Total Liabilities
16.69B	17.05B	15.61B	16.35B	13.99B	13.87B
	Stockholders Equity
9.09B	8.75B	7.71B	7.46B	6.95B	7.04B
Cash Flow		Free Cash Flow
146.00M	149.00M	178.00M	-419.00M	-76.00M	-70.00M
	Operating Cash Flow
1.61B	1.54B	1.12B	539.00M	738.00M	773.00M
	Investing Cash Flow
-1.39B	-1.38B	-199.00M	-997.00M	-483.00M	-1.21B
	Financing Cash Flow
-129.00M	-175.00M	-882.00M	435.00M	-245.00M	392.00M

AltaGas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 38.47 is above the 20-day moving average (MA) of 38.18, above the 50-day MA of 38.43, and above the 200-day MA of 35.19, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.42 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
Sector *	68 Neutral	$15.28B	10.01	6.42%	5.16%	4.47%	-73.86%
ALA	67 Neutral	$11.51B	20.41	6.56%	3.28%	2.27%	-9.19%
GBNXF		$2.87B	24.45	17.23%	4.99%	―	―
NUVSF		$2.26B	8.60	16.78%	―	―	―
KEY	76 Outperform	C$10.14B	18.58	19.55%	4.70%	8.00%	52.89%
PKI	67 Neutral	C$6.73B	34.31	6.21%	3.73%	-9.79%	-49.13%
SPB	65 Neutral	C$1.85B	36.97	2.90%	2.23%	5.71%	320.62%

AltaGas Corporate Events

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.

AltaGas to Announce Q1 2025 Results and Hold Shareholder Meeting

AltaGas Ltd. announced it will release its first quarter 2025 financial results on May 1, 2025, followed by a conference call and webcast to discuss the results and other corporate developments. The company will also hold its Annual and Special Meeting of Shareholders on the same day, providing shareholders with the opportunity to vote virtually or in advance. This announcement underscores AltaGas’ commitment to transparency and stakeholder engagement, potentially impacting its market perception and shareholder relations.