Investment Thesis
Alliant Energy faces significant financial distress with a critical liquidity crisis (current ratio 0.69x), weak interest coverage of 1.8x, and minimal free cash flow of $26M. Combined with elevated leverage (1.48x D/E), zero revenue and earnings growth, and poor returns on equity (3%), the company presents substantial downside risk despite stable operating margins.
Strengths
- Strong operating margin of 21% demonstrates efficient utility operations
- Stable operating cash flow of $368M provides consistent core business liquidity generation
- Profitable operations with 18.9% net margin generating $224M annual net income
Risks
- Critical liquidity crisis: current ratio of 0.69x indicates insufficient current assets to cover short-term obligations and presents refinancing risk
- Weak interest coverage of 1.8x combined with $11B long-term debt creates acute vulnerability to rate increases or operational deterioration
- Minimal free cash flow of $26M (2.2% FCF margin) severely constrains financial flexibility for debt reduction, capital investments, or shareholder distributions
Key Metrics to Watch
- Current ratio trajectory - critical need for improvement above 1.0x to resolve liquidity stress
- Interest coverage ratio and debt refinancing terms - must strengthen above 2.5x for stability
- Free cash flow margin and operating cash flow sustainability relative to capital expenditure obligations
Financial Metrics
Revenue
1.2B
Net Income
224.0M
EPS (Diluted)
$0.87
Free Cash Flow
26.0M
Total Assets
24.8B
Cash
115.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
21.0%
Net Margin
18.9%
ROE
3.0%
ROA
0.9%
FCF Margin
2.2%
Balance Sheet & Liquidity
Current Ratio
0.69x
Quick Ratio
0.69x
Debt/Equity
1.48x
Debt/Assets
0.0%
Interest Coverage
1.75x
Long-term Debt
11.0B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T18:11:39.828131 |
Data as of: 2026-03-31 |
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