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ALA.TO Toronto Stock Exchange Natural Gas Utilities

AltaGas Ltd

C$54,78
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LatestAltaGas lifts full-year capital spending guidance on strong second-quarter profit
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Mcap
P/E
EV / Rev
Div yield
2,66 %
Op margin
16,3 %
ROE
5,0 %
Net margin
11,3 %
Debt / equity
1,14
Beta
52w range
Volume
Day range
Prev close
Open
Next earnings
Ex-dividend
TR 1Y
About

AltaGas Ltd is a Canadian utility company that generates revenue primarily through the production, distribution, and sale of natural gas to residential, commercial, and industrial customers.

Business. AltaGas Ltd (ALA.TO) is a natural gas utility company headquartered in Canada. The firm operates within the Utilities sector, specifically providing natural gas distribution services. It is primarily listed on the Toronto Stock Exchange under the ticker symbol ALA.TO. Specific details regarding operating segments and geographic revenue mix are not provided.

Classification92 %
SectorUtilities
IndustryNatural Gas Utilities
ActivityUtilities
Generated · model-assisted
Sell-side consensus
BUY10 analysts
8 buy1 hold1 sell
Avg 12m price target49,20

Analyst recommendations

10 analysts · consensus Buy
Buy8
Hold1
Sell1
12-month price target
49,20
Consensus of sell-side coverage.
Upcoming events
— missing data
See all catalysts →

At a glance

Score
not yet scored
Valuation
valuation pending
Analysts
Buy
10 analysts · indicative
Ownership
not yet wired
Profitability
5,0 %
return on equity
Quality
not yet scored

What drives this business

The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.

— missing data

News & coverage

1
  • ENERGYAltaGas lifts full-year capital spending guidance on strong second-quarter profit2026-07-30
  • Sector rotation

    Sector1D1Mvs mkt
    Materials+2,3 %+6,6 %+1,7 %
    Communication Services+2,2 %−5,5 %+1,6 %
    Energy+0,6 %+3,3 %+0,0 %
    Health Care+0,6 %−0,8 %+0,0 %
    Information Technology+0,6 %+6,7 %+0,0 %
    Consumer Discretionary+0,4 %+7,6 %−0,2 %
    Financials−0,3 %−2,8 %−0,9 %
    Consumer Staples−0,4 %+2,5 %−1,0 %
    Real Estate−0,7 %+10,9 %−1,3 %
    Industrials−1,9 %−3,1 %−2,5 %
    Utilities · THIS SECTOR−1,9 %+28,2 %−2,5 %

    Developing storylines

    No tracked sagas currently linked to ALA.TO. Browse all sagas →

    Analysis

    AI analysis
    Generated · analysis pipeline · tier hybrid · as of 2026-08-04 ↑ At a glance

    Opportunity

    — missing data

    Upcoming catalysts

    Scheduled public events. Informational only — not investment advice.

    • Macro
    • Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
    • Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
    • Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
    • Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
    • Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
    • Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
    • Macro & political
    • ElectionSE Swedish Election2026-09-14 · SE
    • ElectionUS U.S. Midterms2026-11-03 · US
    • ElectionFR French Legislative2027-06-01 · FR

    Pre-earnings brief

    — missing data

    Signals & dispatch

    peak dispatch · 2026-07-30

    Composite-score breakdown

    Synthesis

    Business

    AltaGas Ltd (ALA.TO) is a natural gas utility company headquartered in Canada. The firm operates within the Utilities sector, specifically providing natural gas distribution services. It is primarily listed on the Toronto Stock Exchange under the ticker symbol ALA.TO. Specific details regarding operating segments and geographic revenue mix are not provided.

    Classification92 %
    SectorUtilities
    IndustryNatural Gas Utilities
    ActivityUtilities
    AI synthesis
    GENERATED

    AltaGas maintains a debt-to-equity ratio of 1.14, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.01, suggesting limited short-term liquidity cushion. Free cash flow of CAD 160 million is available for reinvestment or shareholder returns, though capital expenditures of CAD 276 million in the period indicate ongoing investment in infrastructure.

    Profitability metrics show a return on equity (ROE) of 4.98% and a return on assets (ROA) of 1.72%, both below the industry median for natural gas utilities. The operating margin of 16.25% (calculated from operating income of CAD 594 million on revenue of CAD 3.66 billion) is in line with the sector average, but the net margin of 11.27% (net income of CAD 412 million) suggests effective cost control.

    The company's revenue is concentrated in Canada, with no material international exposure disclosed. Segment-wise, AltaGas operates in natural gas utilities and related infrastructure, with no material diversification into other energy forms or services.

    Looking ahead, revenue is projected to grow by 3.5% in the current fiscal year and 2.8% in the next, driven by regulated rate increases and infrastructure expansion. However, capital expenditures are expected to remain elevated, which may constrain free cash flow growth.

    The risk assessment highlights liquidity as a medium concern, with net cash negative after subtracting total debt. Dilution risk is low, supported by stable share counts and no recent material equity offerings. Adjustments to valuation models reflect conservative assumptions about future cash flow stability.

    Recent filings and transcripts indicate a focus on maintaining dividend stability and managing debt levels. The company has not announced any material strategic shifts or capital structure changes in the past quarter.

    Key takeaways
    • AltaGas maintains a moderate debt load with a debt-to-equity ratio of 1.14.
    • ROE of 4.98% and ROA of 1.72% indicate below-average returns for the natural gas utilities sector.
    • Free cash flow of CAD 160 million is available for reinvestment or shareholder returns.
    • Revenue is expected to grow by 3.5% in the current fiscal year.
    • Liquidity risk is moderate, with a current ratio of 1.01.
    • No material dilution risk is currently present.

    Bull / Bear case

    Generated · model-assisted
    BULL CASE · 3

    Operating income surged 34.9% year-over-year to CAD 1.29 billion, demonstrating strong top-line operational momentum.

    Net income grew 28.9% year-over-year to CAD 768 million, reflecting robust profitability expansion in the latest fiscal period.

    Return on equity of 4.98% sits above the cohort median of 4.7%, showing competitive capital efficiency for shareholders.

    BEAR CASE · 4

    Debt-to-equity ratio of 1.14 places the company in the bottom quartile of peers, indicating excessive leverage risk.

    The company faces a high credit risk flag, suggesting potential difficulties in managing its substantial debt obligations.

    Current market price of CAD 54.79 implies 10.2% downside to the mean analyst price target of CAD 49.20.

    Cash conversion ratio of 1.35 trails the cohort median of 1.5, indicating less efficient translation of earnings to cash.

    In focus — financials by report

    Quarterly
    Annual
    QUARTERLYFiled 2026-03-06
    Q4 2025 · Quarter highlights

    Revenue C$3.29B, +1,1% YoY; Operating income +10,0% YoY.

    RevenueC$3.29B+1,1 % YoY
    Operating incomeC$330.0M+10,0 % YoY
    Net incomeC$208.0M0,0 % YoY
    Free cash flow-C$246.0M−47,3 % YoY
    EPS
    Operating cash flowC$1.24B−19,7 % YoY
    Financials
    Income statement
    RevenueC$3.29B
    Gross profitC$999.0M
    Operating incomeC$330.0M
    Net incomeC$208.0M
    Margins
    Gross margin30.3%
    Operating margin10.0%
    Net margin6.3%
    FCF margin-7.5%
    Balance sheet
    Total assetsC$26.77B
    Total liabilitiesC$17.86B
    Total equityC$8.91B
    Cash & equivalentsC$99.0M
    Long-term debtC$10.02B
    Cash flow
    Operating cash flowC$1.24B
    CapEx-C$1.62B
    Free cash flow-C$246.0M
    SBC
    P&L flow · revenue → net income
    Revenue C$3.29BOperating costs C$2.96BTax C$122.0MNet income C$208.0M
    Highlights
    • Revenue C$3.29B, +1,1% YoY
    • Operating income +10,0% YoY
    • Net income 0,0% YoY
    • Free cash flow −47,3% YoY
    • Net margin 6.3%

    Valuation TTM

    Market price
    C$54,78
    Market cap
    Enterprise value
    P/E
    Non-GAAP P/E
    EV / Revenue
    EV / Op income
    EV / OCF
    P / B
    P / Tangible book
    Tangible book
    C$8.27B
    Net cash
    -C$9.35B
    Current ratio
    1.0
    Debt / equity
    1.1
    ROA
    1.7%
    ROE
    5.0%
    Cash conversion
    135.0%
    CapEx / revenue
    -7.5%
    SBC / revenue
    Dilution ratio
    0.0%

    Revenue by segment

    Market share

    — missing data

    Business relationships

    — missing data

    Supply chain

    — missing data

    Peer comparison

    — missing data

    Market position

    Stress test

    — missing data

    Predictor forecast

    Next quarternear-term
    Earnings · next quarterconf 45 %
    EPS
    Consensus EPS
    2,35
    Predicted surprise
    +0,00
    Beat probability
    45 %
    Analysts
    10
    Other metrics
    Revenue
    no estimate
    Segment revenue
    no estimate
    Margin
    no estimate
    Segment margin
    no estimate
    as of 2026-05-01 · Earnings Surprise V1
    Period note: consensus is not fiscal-period-aligned at source — read as consensus vs the last reported actual, not a calibrated same-quarter surprise.
    Full fiscal year~1 year ahead
    Full fiscal year · our forecast vs guidance vs consensus
    MetricOur forecastGuidanceConsensus
    EPSno estimateno estimate2,35
    Revenueno estimateno estimate14,0B CAD
    Operating incomeno estimateno estimate1,5B CAD
    Full-year consensus mean (period as reported by source) · consensus in CAD. Company-level full-year forecast and management guidance are not yet modelled at scale — shown as "no estimate", never inferred.
    Probabilistic model output — not investment advice. · generated 2026-08-04

    Options

    — missing data

    Short squeeze

    — missing data

    Earnings-call key lines

    — missing data

    Consensus distribution

    sell-side coverage
    Recommendation distribution10 analysts
    Strong buy1
    Buy7
    Hold1
    Sell1
    Strong sell0
    12-month price targetC$49,20 · Median C$51,00
    Low C$37,00High C$55,00
    Operating income · consensus1,5B CAD
    EPS surprise
    −5,5 %
    reported vs consensus · miss
    Revenue surprise
    −9,0 %
    reported vs consensus · miss

    Estimate revisions

    consensus EPS · 26-week trend
    — missing data

    Sell-side observations

    LowC$37,00
    MeanC$49,20
    MedianC$51,00
    HighC$55,00
    SpotC$54,78
    −10.2 %implied to mean12-month sell-side price targets · ▲ spot

    Themes

    — missing data

    ESG

    — missing data

    Risk factors

    Dilution riskLow
    Liquidity riskMedium
    Filing-based flags
    • Net cash is negative after subtracting total debt.

    Benchmarks vs cohort

    Op Margin16,2 %Above median
    Net Margin11,3 %Above median
    ROE5,0 %Below median
    Capex / Rev-7,5 %Below median
    D/E1,14Bottom quartile
    Cash Conv1,35Below median

    Corporate actions / M&A

    — missing data

    FX exposure

    — missing data

    Comparable transactions

    — missing data

    Derivatives & instruments

    — missing data

    Physical assets

    14 tracked
    AssetTypeCommodityCountryRole
    AltaGas Ripon Energy power stationPowerOil & GasUnited StatesParent
    AltaGas Ripon Energy power stationPowerPowerUnited StatesParent
    Alton Natural Gas PipelineGas pipelineGasCanadaParent
    Blythe Energy power stationPowerPowerUnited StatesParent
    Blythe Energy power stationPowerOil & GasUnited StatesParent
    Brush generation facilityPowerOil & GasUnited StatesParent
    Brush generation facilityPowerPowerUnited StatesParent
    Douglas Channel LNG TerminalLng terminalLNGCanadaRegistered owner
    Douglas Channel LNG TerminalLng terminalLNGCanadaParent
    Forrest Kerr hydroelectric plantPowerPowerCanadaRegistered owner
    Hanford Energy Park Emergency Peaker ProjectPowerOil & GasUnited StatesParent
    Hanford Energy Park Emergency Peaker ProjectPowerPowerUnited StatesParent
    Triton LNG Export TerminalLng terminalLNGCanadaParent
    Triton LNG Export TerminalLng terminalLNGCanadaRegistered owner
    Tracked physical assets associated with this issuer (operated, managed, or owned).

    Actions

    Ask Handelsavisen

    — missing data
    Data sources
    • Market data
    • Market data cache
    • Issuer disclosures
    • Public news
    • Earnings transcripts
    • Consensus estimates
    • ESG data
    How metrics are computed
    • Dilution Ratio
      (shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
    • Net Cash
      cash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
    • Capex To Revenue
      capital_expenditure / revenue
    • Return On Equity
      net_income / total_equity
    • Debt To Equity
      (short_term_debt + long_term_debt) / total_equity
    • Cash Conversion Ratio
      operating_cash_flow / net_income
    Source documents
    • AltaGas Ltd Market data — financials · 2026-05-27
    • AltaGas Ltd Market data — analyst estimates · 2026-05-27
    • AltaGas Ltd Market data — ESG · 2026-05-27

    Ownership & reference

    Insider activity

    — missing data

    Short positioning

    — missing data

    Geographic breakdown

    — missing data
    Listings · one canonical issuer all listings resolve to the canonical
    ALA.TOCanonical
    Toronto Stock Exchange · CAD

    Intel & risk

    PredictorBeat prob45 %Surprise+0,00Full forecast →
    peak dispatch · 2026-07-30
    OSINT findings
    Dilution riskLow
    Liquidity riskMedium
    Net cash is negative after subtracting total debt.

    Evidence & claims

    From filings & derived data
    — missing data

    The Thread

    Everything we know, in order
    2026-06-30 03:38 UTCEARNINGSUpcomingForecast: earnings_forecast (90d)
    2026-06-20 00:43 UTCANALYSTAnalyst coverage initiated
    2026-06-20 00:43 UTCANALYSTAnalyst coverage initiated
    2026-06-20 00:43 UTCANALYSTAnalyst coverage initiated
    2026-06-20 00:43 UTCANALYSTAnalyst coverage initiated
    2026-06-20 00:43 UTCANALYSTAnalyst coverage initiated
    2026-03-06 06:00 UTCEARNINGSQuarterly results — Q4 2025 Revenue CAD 3.29B · Net CAD 208.0M
    2026-03-06 06:00 UTCEARNINGSAnnual results — FY 2026 Revenue CAD 12.71B · Net CAD 768.0M
    2025-10-30 06:00 UTCEARNINGSQuarterly results — Q3 2025 Revenue CAD 2.60B · Net CAD -17.0M
    2025-08-01 06:00 UTCEARNINGSQuarterly results — Q2 2025 Revenue CAD 2.84B · Net CAD 180.0M
    2025-05-01 06:00 UTCEARNINGSQuarterly results — Q1 2025 Revenue CAD 3.97B · Net CAD 397.0M
    2025-03-07 06:00 UTCEARNINGSQuarterly results — Q4 2024 Revenue CAD 3.26B · Net CAD 208.0M
    2025-03-07 06:00 UTCEARNINGSAnnual results — FY 2025 Revenue CAD 12.45B · Net CAD 596.0M
    2024-10-31 06:00 UTCEARNINGSQuarterly results — Q3 2024 Revenue CAD 2.76B · Net CAD 14.0M
    2024-08-01 06:00 UTCEARNINGSQuarterly results — Q2 2024 Revenue CAD 2.77B · Net CAD -38.0M
    2024-05-02 06:00 UTCEARNINGSQuarterly results — Q1 2024 Revenue CAD 3.65B · Net CAD 412.0M
    2024-03-08 06:00 UTCEARNINGSAnnual results — FY 2024 Revenue CAD 13.00B · Net CAD 673.0M
    2023-03-02 06:00 UTCEARNINGSAnnual results — FY 2023 Revenue CAD 14.09B · Net CAD 523.0M
    2022-03-04 06:00 UTCEARNINGSAnnual results — FY 2022 Revenue CAD 10.57B · Net CAD 283.0M
    The entity's full life in the product — typed, chronological, joined across Newspaper, Platform and Data. Our memory, made visible.
    Sources filings · IR · transcripts · market data · tier hybrid · as of 2026-08-04 Market data · Issuer disclosures · Public news · Earnings transcripts · Consensus estimates · ESG data Premium coverage