Alliant Energy Corp (LNT) stock analysis

P/E below its 5-year median

Alliant Energy's P/E of 20.5 is below its own 5-year median of 21.2.

P/E above the industry

Alliant Energy's P/E of 20.5 is above the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

Alliant Energy's EV/EBITDA of 16.4 is above its 5-year median of 15.2.

P/B above the industry

Alliant Energy's price-to-book of 2.45 is above the Combination Electric and Gas, and Other Utility median of 1.74.

Trading above fair value

The share price of $73.62 is above our fair value estimate of $64.51.

Margin of safety under 20%

The price is 14.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 14.2% over the last twelve months, against a 5-year average of 5.4% a year.

Growing faster than the industry

Revenue grew 5.4% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance raised

Alliant Energy raised its 2026 ongoing earnings per share guidance outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 85.8% over the last twelve months, against 85.4% a year earlier.

Return on equity under 15%

Return on equity was 12.4% over the last twelve months and averaged 11.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Alliant Energy's return on equity of 12.4% is above the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 5.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 20.7% over the last twelve months, against a 5-year average of 17.6%.

Net margin above the industry

Alliant Energy's net margin of 20.7% is above the Combination Electric and Gas, and Other Utility median of 12.7%.

High debt

Debt is 156% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 126% five years ago to 156%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 9.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.8 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.51 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.13; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Alliant Energy paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Alliant Energy yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 58.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.