# AltaGas Ltd. (ALA.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Gas Utilities. Price C$52.54, market value C$16.4 billion.

## Valuation
- **P/E (trailing): 26.5×** (5-yr avg 17.5×, 3-yr avg 14.8×). AltaGas Ltd. trades at 26.5× trailing earnings, well above its own five-year average of 17.5×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 18.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.66**. A PEG of 0.66 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 1.8×**. The shares trade at 1.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.3×**. Enterprise value is 14.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -2.7%** (5-yr avg -1.4%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 3.8%**. The inverse of the P/E: 3.8% of the price is earned each year.

## Profitability
- **Gross margin: 25.5%**. AltaGas Ltd. keeps 25.5% of revenue after the direct cost of what it sells.
- **Operating margin: 10.7%**. 10.7% of revenue is left after running the business.
- **Net margin: 6.1%**. 6.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.6%**. 8.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 5.6%**. Return on all capital, debt included, is 5.6%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.4%**. Each dollar of assets produces 2.4% of profit.

## Growth
- **Revenue growth (1 yr): 0.8%** (3-yr -4.5%/yr, 5-yr 17.3%/yr). Revenue grew 0.8% over the last year, against 17.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 27.8%** (3-yr 20.7%/yr, 5-yr 7.3%/yr). Earnings per share rose 27.8%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.18**. Debt is 1.18 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 5.6×**. It would take 5.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 3.2×**. Operating profit covers interest 3.2× over, a safe margin.
- **Current ratio: 0.82** (quick 0.64). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.62**. A Z-score of 1.62 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.54%** (C$1.30 per share, trailing). AltaGas Ltd. yields 2.54%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 52%**. 52% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 5.5%/yr** (1-yr 5.7%). The dividend has grown 5.5% a year over five years.

## Analyst view
- **Analyst consensus: buy** (11 analysts). 11 analysts cover AltaGas Ltd.; the consensus is buy, with an average price target of C$60.18 (+15% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 30.9%** (YTD 27.2%, 3-mo -5.2%). The shares are up 30.9% over twelve months including dividends.
- **From 52-week high: -8.7%** (33.2% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): -0.23** (volatility 19%). Beta of -0.23 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALA.TO · Page: https://foliofundamentals.com/stocks/ala.to

Not investment advice.