3 months Premium FREE
No credit card. No commitment.
AltaGas Ltd
🇨🇦 ALA.TO · Toronto · CA0213611001
Utilities
CAD 52.41 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
30.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 52.41 ÷ 1.69 = 30.9
TTM period through: 2026-03-31
Forward P/E (estimated): 21.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.8
Net Debt/EBITDA (TTM)
6.2x
Latest quarter: 22.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 22.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
5.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.56%
TTM: 2.44%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.56%
Trailing Yield (TTM, last 12 months): 2.44%
Payout Ratio (Fwd)
79.1%
TTM: 51.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 79.1%
Payout (TTM): 51.8%
Cash Flow Payout (TTM): 34.4%
FCF Coverage (TTM): -1.19x
Growth Streak
6 yrs
Consec. increases
Div. Growth (5Y)
5.5%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly² | — | 16 Jun 2027 | — | CAD | 0.334 |
| Forecast* | Quarterly² | — | 16 Mar 2027 | — | CAD | 0.334 |
| Forecast* | Quarterly² | — | 16 Dec 2026 | — | CAD | 0.315 |
| Forecast* | Quarterly² | — | 16 Sep 2026 | — | CAD | 0.315 |
| Paid | Quarterly² | — | 16 Jun 2026 | — | CAD | 0.334 |
| Paid | Quarterly² | — | 16 Mar 2026 | 31 Mar 2026 | CAD | 0.334 |
| Paid | Quarterly² | — | 16 Dec 2025 | 31 Dec 2025 | CAD | 0.315 |
| Paid | Quarterly² | — | 16 Sep 2025 | 29 Sep 2025 | CAD | 0.315 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
² Type not provided by EODHD — inferred from historical payment data.
📊 What Changed From Last Analysis?
Downgraded from WATCH to BELOW THRESHOLD: Reassessment of structural risks (fossil fuel transition mandates at Washington Gas and active legal threats to Prince Rupert exclusivity) indicates a definitive strategy mismatch, capping long-term dividend visibility while valuation and yield (2.4%) remain uncompelling.
Summary
AltaGas combines a regulated natural gas utility with midstream export operations, but intensifying structural risks make it an unsuitable fit for conservative, long-term dividend strategies. Regulatory pressures to phase out natural gas in its core U.S. utility markets and active legal challenges to its Prince Rupert export exclusivity create substantial execution and transition risks. With a low 2.4% yield and these looming strategic headwinds, new investors should seek clearer opportunities, while existing shareholders should weigh these structural threats against the currently stable cash flow coverage.
Sector Context
AltaGas is a diversified North American energy infrastructure company operating two primary segments: a regulated natural gas utility business (mainly Washington Gas Light) and a midstream energy business focusing on natural gas processing and LPG exports. While utilities generally offer stable cash flows suitable for dividends, pure-play fossil fuel infrastructure faces increasing regulatory transition risks in progressive jurisdictions.
Temporary Opportunity Identified
Recent quarterly net losses were primarily driven by non-operating and accounting factors, including unrealized losses on risk management contracts and the absence of a prior-year one-time pension settlement gain.
📊 Strategy Analysis
- • P/FFO of 13.4x sits comfortably within the 12-15x fair value range for utility and infrastructure assets, indicating core operating cash flows are reasonably priced despite elevated GAAP P/E.
- • The current dividend is well-supported in the near term with a conservative Cash Flow Payout of 34.4%, demonstrating strong ongoing cash generation before capital expenditures.
⚠ What to Watch
- • Intensifying structural regulatory risks in the U.S. utility segment (Washington Gas Light), where aggressive decarbonization mandates and electrification building codes are capping rate-base growth and increasing stranded-asset risk.
- • The Ridley Island Energy Export Facility's business model relies on an exclusivity agreement that faces active legal challenges from Trigon Pacific Terminals and a formal withdrawal of First Nation support, threatening its long-term viability.
- • Current trailing dividend yield of 2.44% falls strictly below the 3% minimum threshold required for new positions in this income-focused strategy.
- • Elevated leverage with Net Debt/EBITDA at 6.17x exceeds conservative utility thresholds, reducing balance sheet flexibility amid ongoing infrastructure investments.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.