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AltaGas poised for steady growth with 8% EBITDA rise in 2024 but stock valued at 17-25x cash flow limits upside

Analyst Insights
31 May 2026
Seeking Alpha
View Source
Neutral
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AltaGas is expected to achieve steady growth driven by its U.S. natural gas assets and strategic stake in the Mountain Valley Pipeline. The company forecasts an 8% increase in normalized EBITDA and a 6% rise in earnings per share for 2024. However, the stock currently trades at a high valuation of 17 to 25 times forward free cash flow, which limits near-term upside potential. While the dividend yield remains below 3% even after a recent increase, total returns will depend on the success of multi-billion-dollar growth investments and future free cash flow expansion. Common shares are rated as a hold, whereas Series G preferred shares offer an attractive fixed-income yield of 4.65%.

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