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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Alliant Energy Corporation (XNAS:LNT) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
LNT
Name:
ALLIANT ENERGY CORPORATION (XNAS:LNT)
Sector:
251.00M
Industry:
Utilities�Regulated Electric
CEO:
Mr. John Larsen
Total Employees:
3,313
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -3.92% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ALLIANT ENERGY CORPORATION(LNT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND UTILITIES�REGULATED ELECTRIC INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
61.49
One Month Price Target:
$61.65
Six Month Price Target :
$62.44
Likely Price in One Year's Time:
Ticker:
$63.4
Likely Trading Range Today Under (Normal Volatility)
$61.33
Price Upper limit ($) :
$61.7
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$59.28
This week:
$56.54
This month :
$51.6
Other Primary facts
Market Cap:
15.35B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
250.93M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
10.11%
-9.62%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$71.75
$67.04
$51.23
$55.94
Medium risk (<10%) entry points
Buy Call
Sell Call
$65.50
Buy Put:
Sell Put:
$64.49
$57.47
$58.49
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
LNT
Sharpe Ratio:
1.60%
Comparison:
LNT, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 36.55% higher than the industry
& is -29.81% lower than the market/S&P 500 average
Average Returns/Yield of
LNT
Daily returns:
0.04%
Weekly returns:
0.19%
Monthly returns:
0.74%
Yearly returns:
7.85%
Comparison of returns:
Average annual returns/yield (last 3 years) is 13.66% above industry average
Classification:
LNT, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.81
Statistical test of Returns:
LNT has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.77%
Weekly Volatility:
3.96%
Monthly Volatility:
7.92%
Yearly Volatility:
27.42%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.41%
Volatility in last five trading days has been -20.12% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.60%
Weekly VaR:
-8.04%
Monthly VaR:
-16.09%
How Much Can the price of
LNT
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-14%
Worst case (decline):
-55.74%
This translates to price declining to:
$53.00
This translates to price declining to:
$27.22
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
LNT is a 13.56% riskier investment compared to the market/S&P 500 & is -2.71% less risky than Nasdaq(IXIC)
Risk (measured by volatility) is -12.78% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
LNT
Beta in relation to market/S&P 500--0.46
Expected beta in 1 year's time:
0.543
Expected beta in 3 year's time:
0.768
Unlevered (debt free) Beta:
0.202
Beta in relation to Nasdaq (XNAS):
0.41
Beta in relation to all global stocks::
0.618
Beta Comparison & Analysis
Beta of competitors/peers::
0.87
Beta is -46.91% lower than peers
Average Industry Beta:
0.5
Beta is -7.55% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
4.35%
Sustainable growth rate is 24.67% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.026
Alpha is 104.31% above industry average alpha yield
Alpha is 166% higher than market/& is unsustainably high
Analysis of Cost of Capital of
LNT
Equity cost of capital:
0.063
Equity cost of capital is -3.93% below industry mean WACC
Unlevered (without debt) cost of capital:
2.76%
Before-tax cost of debt:
3.53%
After-tax cost of debt:
2.79%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.79%
WACC is -8.25% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$15.29
Revenue growth rate per share of (3Y):
2.54
Annual revenue growth rate is 155.45% above the industry average
EPS:
$2.71
Expected Annual growth rate of EPS (3Y):
-1.59%
Expected future EPS growth rate is -74.26% lower than the Utilities�Regulated Electric industry
Free cash flow (FCF) per share:
$2.68
Balance sheet equity growth per share: 20.52%
Equity growth rate per share is 249.68% higher than the industry
Debt per share
$29.42
EBITDA per share
$6.36
Valuation Analysis Today of
LNT
P/E Ratio:
22.2
P/E Ratio of Competitors/Peers:
51.38
P/E ratio is -56.80% lower than main peers & is -19.82% lower than the industry
Stock price/value with industry average P/E ratio: $75.04
LNT is -18.05% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $70.80
Present value of the expected future dividends only: $38.63
P/S (Price to Sales ratio):
4.02
Price to sales ratio is 38.56% above the industry mean
P/B (Price to book value ratio):
2.54
Price to free cash flow: 22.94
-
Net income growth rate (3Y):
20.48%
Net income growth rate is -795.39% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 15.46%
Dividend yeild: 2.70%
Previous Dividend: $0.43
Previous adjusted dividend: $0.43
Previous Dividend: $1.66
Expected next dividend best case: $0.45
Expected next dividend worst case: $0.41
Average dividend payment (long-term): $0.39
Average dividend increase/decrease (growth rate) % per period: 1.93%
Expected next dividend payment date: 15/08/2022
Expected next dividend record date: 28/07/2022
Expected next dividend declaration date: 13/07/2022
Previous dividend payment date: 16/05/2022
Previous dividend record date: 29/04/2022
Previous dividend declaration date: 14/04/2022
Dividend History:
2022-04-28--$0.43
2021-10-29--$0.40
2021-04-29--$0.40
2022-01-28--$0.43
2021-07-29--$0.40
2021-01-28--$0.40
Dividend growth rate is -293.01% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
121.49%
Net debt to equity ratio:
130.41%
Debt to assets ratio:
39.19%
Net debt to assets ratio:
42.07%
Debt-to-asset ratio is -37.65% below industry average
Ability to repay debt:
Interest coverage ratio:
5.66
Interest coverage ratio is 119.67% more than industry average
Looking forward:
Debt growth rate:
10.01%
Annual debt growth is -78% lower than industry average debt growth rate
Debt repayment rate in last quarter: 3.90%
Analysis of Key Statistics
Correlation of price movement with the market:
0.593
Statistical significance of correlation:
LNT has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.597
Stock price is -0.66% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.597
Correlation of price movement with Nasdaq (^IXIC):
0.039
Covariance of price movement with the market:
0.04
Kurtosis
6.733
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.07
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
LNT
Gross Profit Margin Ratio:
168%
Operating Profit Margin Ratio:
22.03%
Operating profit margin is 89.33% higher than the industry
Net Profit Margin Ratio:
168%
Effective Tax Rate:
-5.81%
Effective tax rate is -128.86% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
11.39%
Return on equity (ROE) is 25.27% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.67%
Return on assets (ROA) is 58.86% higher than the industry
Financial Leverage:
1.6x
Current Ratio:
0.72
Current ratio is -70.00% below industry average
Cash Conversion Cycle (days):
-0.1
Cash conversion cycle is -100.06% below industry average
The remaining useful life of property plant & equipment is: 9.0 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
1.2M
Each employee generates -58% less revenue than industry average revenue per employee
EBITDA generated per employee:
481.4K
Each employee generates -59% less EBITDA than industry average revenue per employee
Profit generated per employee:
208.9K
Each employee generates -49% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
75.8K
Each employee generates -330% less free cash flow than industry average revenue per employee
Assets/Capital per employee
5.4M
Each employee generates -330% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
LNT
NEW FORTRESS ENERGY INC. (XNAS:NFE)
ATLANTICA SUSTAINABLE INFRASTRUCTURE PLC (XNAS:AY)
MGE ENERGY, INC. (XNAS:MGEE)
RENEW ENERGY GLOBAL PLC (XNAS:RNW)
MIDDLESEX WATER COMPANY (XNAS:MSEX)
Fluence Energy Inc (XNAS:FLNC)
THE YORK WATER COMPANY (XNAS:YORW)
ARTESIAN RESOURCES CORPORATION (XNAS:ARTNA)
SPKE
Current Analyst Ratings
Strong buy�8%
Buy�0%
Hold�21%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
3.84B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.23B
1.61B
-
-
-
-
764.00M
764.00M
-
282.00M
659.00M
1.60B
845.00M
692.00M
654.00M
- 38000.00K
692.00M
Statement of Cash Flow
Date:
Period:
166.00M
Differed Income Tax :
18.00M
Stock Based Compensation :
-
Change in Working Capital :
- 119000.00K
Accounts Receivables:
- 161000.00K
Other Working Capital:
- 2000.00K
Other Non-Cash Items:
- 6000.00K
Net Cash Provided by Operating Activities:
251.00M
Investments in PP&E:
-
Net Acquisitions:
- 330000.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
67.00M
-
67.00M
481.00M
185.00M
359.00M
1.09B
15.19B
-
-
533.00M
-
2.02B
17.75B
-
18.84B
383.00M
609.00M
-
-
529.00M
1.52B
7.38B
1.90B
11.24B
-
12.76B
3.00M
3.34B
-
-
March 31, 2022 at 6:00:00 AM
2.99B
6.08B
18.84B
-
7.99B
7.9B
-
107.00M
- 223000.00K
- 300000.00K
-
-
- 107000.00K
410.00M
3.00M
-
31.00M
71.00M
40.00M
251.00M
-
251.00M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
LNT
2023
2024
2025
2026
2027
$63.72
$91.44
$94.28
$97.20
$100.22