AltaGas Ltd. (ALA.TO) stock analysis

In our weekly check, AltaGas Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About AltaGas Ltd.

AltaGas Ltd. is an Utilities company (Regulated Gas) based in Canada, listed on TSX as ALA.TO.

What our checks show for ALA.TO

Red flags

• Net debt is 6.7x a year of EBITDA (debt/equity 1.13). That limits room in a downturn and raises refinancing risk.
• Revenue fell 1.4% a year over the last 3 years.
• The net margin is only 4.6%: little room if costs rise.
• Free cash flow is negative (-3% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 82% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 2.6 times: a weak year could make the payments hard.
• Return on capital (ROCE) is only 5.1%.

Strengths

• The net margin rose by 1.9 points over 5 years, to 4.6%.
• Operating cash flow is 2.07x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.5% a year over the next years.
• Earnings per share grew 11.5% a year over the last 3 years.
• A large company: market value $12.34 billion.
• The price moves calmly: 19.4% annual volatility.

Next earnings report: 2026-10-29

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Questions

What grade does AltaGas Ltd. (ALA.TO) have?

In our weekly check, AltaGas Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ALA.TO stock?

This week's biggest flags for AltaGas Ltd.: High debt, Weak revenue growth, Thin margins. In total 9 of 25 checks show a warning or a red flag.

What does AltaGas Ltd. do?

AltaGas Ltd. is an Utilities company (Regulated Gas) based in Canada, listed on TSX as ALA.TO.

When does AltaGas Ltd. report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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