AltaGasTSX:ALA -0.06%77 Gross Margin % is 22.57% as of Mar. 2026, which is 36% below its 10-year median of 35.15. GuruFocus rates TSX:ALA with a GF Score™ of 77/100 and a GF Value™ of C$33.05 (Significantly Overvalued). The stock has 15 warning signs investors should review. Among 872 Oil & Gas companies, AltaGas ranks better than 51.15% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. AltaGas's Gross Profit for the
three
months ended in Mar. 2026 was C$896 Mil. AltaGas's Revenue for the
three
months ended in Mar. 2026 was C$3,970 Mil. Therefore, AltaGas's Gross Margin % for the quarter that ended in Mar. 2026 was 22.57%.
Warning Sign:
AltaGas Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.7%.
The historical rank and industry rank for AltaGas's Gross Margin % or its related term are showing as below:
TSX:ALA'
s Gross Margin % Range Over the Past 10 Years
Min: 20.93 Med: 35.15 Max: 53.8
Current: 26.59
During the past 13 years, the highestGross Margin % of AltaGas was 53.80%. The lowest was 20.93%. And the median was 35.15%.
TSX:ALA's Gross Margin % is ranked better than 51.15% of 872
companies
in the Oil & Gas industry
Industry Median: 25.535
vs TSX:ALA: 26.59
AltaGas had a gross margin of 22.57% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AltaGas was -5.70% per year.
AltaGas (TSX:ALA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AltaGas had a gross margin of 22.57% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AltaGas Gross Margin % Related Terms
AltaGas Gross Margin % Historical Data
* Premium members only.
The historical data trend for AltaGas's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:ALA vs WMB, EPD, KMI: Gross Margin % Comparison
For the Oil & Gas Midstream subindustry, AltaGas's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AltaGas Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, AltaGas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AltaGas's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AltaGas (TSX:ALA) has a Gross Margin % of 22.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AltaGas and its competitors. This is 36% below median its historical median of 35.15. Over the past decade, AltaGas' Gross Margin % has ranged from 20.93 to 53.80. According to the industry distribution chart, AltaGas ranks #426 out of 872 companies in the Oil & Gas industry, placing it in the top 48.9%.
Is AltaGas' Gross Margin % too high?
AltaGas' current Gross Margin % of 22.57% is 36% below median its 10-year median of 35.15. Over the past 10 years, this metric has ranged from a low of 20.93 to a high of 53.80. The Oil & Gas industry median Gross Margin % is 25.54. AltaGas' value of 22.57% is 11.6% below this industry median. Based on the distribution chart, AltaGas ranks #426 out of 872 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, AltaGas has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AltaGas' Gross Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, AltaGas ranks #426 out of 872 companies for Gross Margin %. This puts AltaGas in the upper half of its industry. The industry median Gross Margin % is 25.54. AltaGas' value of 22.57% is 11.6% below this benchmark. Historically, AltaGas' own Gross Margin % has ranged from 20.93 to 53.80 over the past decade. While the company's 10-year median is 35.15 vs. the industry median of 25.54, AltaGas has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.54, based on 872 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AltaGas's current Gross Margin % of 22.57% is 11.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on AltaGas and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AltaGas's current Gross Margin % is 22.57%, which is 36% below median its own 10-year median of 35.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AltaGas stock overvalued right now?
Based on GuruFocus' analysis, AltaGas (TSX:ALA) is currently considered Significantly Overvalued. The stock's GF Value™ is C$33.05, compared to a current price of C$54.31 — trading 64.3% above its estimated fair value. The current Gross Margin % is 22.57%, which is 36% below median its 10-year median of 35.15 and 11.6% below the Oil & Gas industry median of 25.54. AltaGas' overall GF Score™ is 77/100 with 15 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For AltaGas (TSX:ALA), the current Gross Margin % is 22.57% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AltaGas (TSX:ALA) Overvalued in 2026?
Based on GuruFocus' analysis, AltaGas stock appears to be overvalued.
The current stock price of C$54.31 is trading 64.3% above its estimated GF Value™ of C$33.05.
GuruFocus considers AltaGas to be Significantly Overvalued.
Key valuation signals for TSX:ALA:
Gross Margin %: 22.57% (36% below median its 10-year median of 35.15)
GF Value™: C$33.05 vs. price of C$54.31 (64.3% above fair value)
Industry Position: 11.6% below the Oil & Gas median (#426 of 872)
No single metric tells the full story. See the TSX:ALA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AltaGas Ltd is a North American energy infrastructure company that connects customers and markets to energy sources. AltaGas has three reporting segments: Utilities, Midstream, and Corporate/Other. The majority of its revenue is generated from the Midstream segment, which operates a North American energy platform that moves natural gas and LPGs from the wellhead to markets. It exports propane and butane to Asia through its LPG terminals, and runs natural gas gathering, processing, fractionation, liquids handling, and storage infrastructure. The segment also includes its natural gas and natural gas liquids (NGLs) marketing business, domestic logistics, trucking and rail terminals, and liquid and natural gas storage capability. Geographically, the firm derives its key revenue from the U.S.
77GF Score
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