AltaGas Ltd
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.
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10 analysts · consensus BuyAt a glance
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- 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
Signals & dispatch
Composite-score breakdown
Synthesis
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.
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.
- 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-assistedOperating 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.
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
Revenue C$3.29B, +1,1% YoY; Operating income +10,0% YoY.
- ▍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%
Revenue C$2.60B, −5,8% YoY; Operating income +215,8% YoY.
- ▍Revenue C$2.60B, −5,8% YoY
- ▍Operating income +215,8% YoY
- ▍Net income −221,4% YoY
- ▍Free cash flow −11,9% YoY
- ▍Net margin -0.7%
Revenue C$2.84B, +2,5% YoY; Operating income +702,6% YoY.
- ▍Revenue C$2.84B, +2,5% YoY
- ▍Operating income +702,6% YoY
- ▍Net income +573,7% YoY
- ▍Free cash flow +51,9% YoY
- ▍Net margin 6.3%
Revenue C$3.97B, +8,6% YoY; Operating income −0,2% YoY.
- ▍Revenue C$3.97B, +8,6% YoY
- ▍Operating income −0,2% YoY
- ▍Net income −3,6% YoY
- ▍Free cash flow −54,4% YoY
- ▍Net margin 10.0%
Revenue C$3.26B; Operating income C$300.0M.
- ▍Revenue C$3.26B
- ▍Operating income C$300.0M
- ▍Net margin 6.4%
Revenue C$2.76B; Operating income C$19.0M.
- ▍Revenue C$2.76B
- ▍Operating income C$19.0M
- ▍Net margin 0.5%
Revenue C$2.77B; Operating income C$38.0M.
- ▍Revenue C$2.77B
- ▍Operating income C$38.0M
- ▍Net margin -1.4%
Revenue C$3.65B; Operating income C$594.0M.
- ▍Revenue C$3.65B
- ▍Operating income C$594.0M
- ▍Net margin 11.3%
Revenue C$12.71B, +2,1% YoY; Operating income +34,9% YoY.
- ▍Revenue C$12.71B, +2,1% YoY
- ▍Operating income +34,9% YoY
- ▍Net income +28,9% YoY
- ▍Free cash flow −6,5% YoY
- ▍Net margin 6.0%
Revenue C$12.45B, −4,2% YoY; Operating income −18,6% YoY.
- ▍Revenue C$12.45B, −4,2% YoY
- ▍Operating income −18,6% YoY
- ▍Net income −11,4% YoY
- ▍Free cash flow −279,8% YoY
- ▍Net margin 4.8%
Revenue C$13.00B, −7,7% YoY; Operating income +25,9% YoY.
- ▍Revenue C$13.00B, −7,7% YoY
- ▍Operating income +25,9% YoY
- ▍Net income +28,7% YoY
- ▍Free cash flow +43,5% YoY
- ▍Net margin 5.2%
Revenue C$14.09B, +33,2% YoY; Operating income +3,2% YoY.
- ▍Revenue C$14.09B, +33,2% YoY
- ▍Operating income +3,2% YoY
- ▍Net income +84,8% YoY
- ▍Free cash flow +29,7% YoY
- ▍Net margin 3.7%
Valuation TTM
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 2,35 |
| Revenue | —no estimate | —no estimate | 14,0B CAD |
| Operating income | —no estimate | —no estimate | 1,5B CAD |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Physical assets
14 tracked| Asset | Type | Commodity | Country | Role |
|---|---|---|---|---|
| AltaGas Ripon Energy power station | Power | Oil & Gas | United States | Parent |
| AltaGas Ripon Energy power station | Power | Power | United States | Parent |
| Alton Natural Gas Pipeline | Gas pipeline | Gas | Canada | Parent |
| Blythe Energy power station | Power | Power | United States | Parent |
| Blythe Energy power station | Power | Oil & Gas | United States | Parent |
| Brush generation facility | Power | Oil & Gas | United States | Parent |
| Brush generation facility | Power | Power | United States | Parent |
| Douglas Channel LNG Terminal | Lng terminal | LNG | Canada | Registered owner |
| Douglas Channel LNG Terminal | Lng terminal | LNG | Canada | Parent |
| Forrest Kerr hydroelectric plant | Power | Power | Canada | Registered owner |
| Hanford Energy Park Emergency Peaker Project | Power | Oil & Gas | United States | Parent |
| Hanford Energy Park Emergency Peaker Project | Power | Power | United States | Parent |
| Triton LNG Export Terminal | Lng terminal | LNG | Canada | Parent |
| Triton LNG Export Terminal | Lng terminal | LNG | Canada | Registered owner |
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- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Capex To Revenuecapital_expenditure / revenue
- Return On Equitynet_income / total_equity
- Debt To Equity(short_term_debt + long_term_debt) / total_equity
- Cash Conversion Ratiooperating_cash_flow / net_income
- 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