Alliant Energy Corporation (LNT)
NEUTRALFundamental
58
Price
$68.50
Market Cap
$17.60B
Part 1 · What the company is worth
Overview
Alliant Energy owns two regulated utilities, Interstate Power and Light in Iowa and Wisconsin Power and Light in Wisconsin, that generate and deliver electricity and distribute natural gas to homes and businesses in the Midwest. It builds and operates power plants, transmission lines and gas pipelines within a territory where state regulators, not competitors, set the prices it can charge and the returns it can earn.
How it makes money
Customers pay metered rates for electricity and gas that regulators approve in advance through rate cases, designed to let Alliant recover its costs and earn a set return on the capital it invests in plants and wires. Growth therefore comes mainly from adding new rate base — power plants, grid upgrades, renewable projects — rather than from selling more volume to existing customers, whose usage regulators actively try to keep efficient.
Revenue by segment
Generation, transmission and retail sale of electricity to roughly a million customers across Iowa and Wisconsin.
Distribution and transportation of natural gas to roughly 435,000 residential and business customers.
Smaller regulated and non-utility activities that fall outside the core electric and gas businesses.
Competitive moat
Scale · NarrowBuilding a second set of power plants and wires to compete for the same customers would be prohibitively expensive, so Alliant effectively holds a monopoly within its service territory. That advantage is narrow rather than wide because regulators, not the market, decide how much profit the company is allowed to keep on the capital it deploys.
What drives demand
DefensiveHouseholds and businesses need electricity and gas regardless of the economic cycle, so volumes are stable and driven mainly by weather rather than by consumer spending or industrial activity. The main swing factor is temperature: a mild winter or summer reduces heating and cooling demand and can dent a given year's results.
Key risks
- Outcome of rate cases — Earnings growth depends on state regulators approving rate increases that let Alliant recover its investments and earn its allowed return; a less favorable or delayed decision slows growth directly.
- Large, ongoing capital spending — The company has a multi-year plan of heavy investment in renewable generation and grid upgrades; higher interest rates or construction cost inflation raise the price of that program and pressure returns.
- Weather dependence — Unusually mild seasons reduce heating and cooling demand and can lower revenue in a given period, independent of the underlying customer base.
- Environmental and climate regulation — Evolving rules on emissions and the pace of the shift away from fossil generation create uncertainty about future compliance costs and the value of existing plants.
The case for
Buyers argue that a regulated monopoly with a clear, multi-year investment plan in renewables and grid modernization offers predictable earnings growth as new capital enters the rate base, with limited exposure to economic downturns.
The case against
Sellers fear that regulators will push back on the size or pace of rate increases needed to fund the capital plan, and that persistently higher interest rates raise financing costs faster than allowed returns can adjust.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$4.42B
Trailing 12 months (through 3/31/2026)
Net Income
$821M
Trailing 12 months (through 3/31/2026)
Free Cash Flow
-
Total Equity
$7.33B
Total Liabilities
$17.66B
Current Ratio
0.69
Interest Coverage
1.90
Debt/EBITDA
6.56
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$51.46
Current Price
$68.50
Margin of Safety
-33.1%
Fair Value Range
$33.45 - $69.47
Estimation Methods
Valuation Metrics
P/E Ratio
21.52
ROE
11.0%
P/B Ratio
2.38
P/FCF
-
Gross Margin
85.8%
ROIC
3.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
3.5%
WACC
6.1%
ROIC − WACC
-2.6 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (16)
- EPS shows upward trend
- Price CAGR 6.00%
- Gross Margin 85.8%
- P/B Ratio 2.38
- Debt/Equity ratio
- Operating Margin 23.0%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 11.0%
- Revenue Growth 5Y 5.1%
- Analyst Consensus 63% Buy
- Earnings Quality (OCF/NI) 1.57
- Share Dilution 0.6%
- Net Margin Trend 18.6% vs 18.3%
- Piotroski F-Score 7/9
Failed (8)
- EPS CAGR 1.09%
- ROIC 3.5%
- Current Ratio
- Debt/EBITDA
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg 1.2%
- PEG Ratio 4.86
Unavailable (4)
- P/FCF NaN
- Dividend Payout NaN%
- Positive Free Cash Flow
- CapEx intensity
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Ms. Lisa M. Barton | President, CEO & Director | 59 |
| Mr. Robert J. Durian CPA | Executive VP & CFO | 54 |
| Mr. Rajagopalan Sundararajan | Executive VP & Chief Strategy Officer | 50 |
| Mr. Antonio P. Smyth | Executive Vice President of Power Generation & Gas Strategy | 48 |
| Mr. Dylan M. Syse | Chief Accounting Officer & Controller | 39 |
| Ms. Melissa A. Kehoe | Vice President of Strategic Financial Planning & Investor Relations | 40 |
| Ms. Amy L. Cralam | VP & General Counsel | - |
| Ms. Aimee L. Davis | Vice President of Marketing, Communications & Customer Operations | 52 |
| Ms. Amy E. Best | Senior VP & Chief Human Resources Officer | - |
| Ms. Mayuri N. Farlinger | President of Iowa Energy & VP of Energy Delivery | 42 |
Audit Risk
5
Board Risk
1
Compensation Risk
1
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for LNT, sourced from Markets Gazette.