Stock Analysis & Valuation Alliant Energy Corporation (0HCT.L)

• Previous Close: £65.24
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	29.20	-55
Intrinsic value (DCF)	25.49	-61
Graham-Dodd Method	9.10	-86
Graham Formula	14.30	-78

Strategic Investment Analysis

Company Overview

Alliant Energy Corporation (LSE: 0HCT.L) is a leading US-based utility holding company providing regulated electricity and natural gas services across Iowa and Wisconsin. Operating through its subsidiaries, Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), Alliant Energy serves nearly 1 million electric and 425,000 natural gas retail customers, catering to industries such as agriculture, manufacturing, and food processing. The company also engages in freight logistics, owning rail and barge terminals, and holds interests in renewable energy projects, including a 225 MW wind farm in Oklahoma. With a strong commitment to sustainability, Alliant Energy is transitioning toward cleaner energy sources while maintaining reliable service. Headquartered in Madison, Wisconsin, the company boasts a market capitalization of approximately $15.7 billion, reflecting its stable position in the utilities sector. Its diversified operations and regulated revenue streams make it a resilient player in the essential services industry.

Investment Summary

Alliant Energy presents a stable investment opportunity within the defensive utilities sector, supported by regulated revenue streams and a consistent dividend yield (currently $1.975 per share). The company’s low beta (0.577) indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, high total debt ($10.6 billion) and significant capital expenditures ($2.25 billion) could pressure cash flows, particularly as the company transitions to renewable energy. The regulated nature of its operations provides earnings stability but limits growth potential. Investors should weigh its reliable dividend against exposure to regulatory risks and energy transition costs.

Competitive Analysis

Alliant Energy operates in a highly regulated and geographically concentrated market, giving it a competitive moat in its service territories (Iowa and Wisconsin). Its vertically integrated model—combining generation, distribution, and ancillary logistics services—enhances operational efficiency. However, the company faces competition from regional peers and renewable energy providers pushing for grid decentralization. Alliant’s investment in wind energy (e.g., its Oklahoma wind farm) aligns with industry trends but lags behind larger utilities with more aggressive renewable portfolios. Its freight logistics segment adds diversification but is marginal compared to core utility operations. Regulatory frameworks in its states provide pricing stability but also limit margin expansion. Competitors with broader geographic footprints or stronger renewable pipelines may outperform in growth-oriented markets, but Alliant’s focus on reliability and customer retention strengthens its defensive positioning.

Major Competitors

• WEC Energy Group (WEC): WEC Energy, another Wisconsin-based utility, overlaps with Alliant in service areas but has a larger renewable energy portfolio and a stronger balance sheet. Its higher market cap and broader Midwest presence give it scale advantages, though Alliant’s freight logistics operations provide unique diversification.
• Alliant Energy Corporation (LNT): Note: This is the same company as 0HCT.L but traded on NASDAQ. The dual listing does not imply competition but highlights liquidity differences between exchanges.
• NextEra Energy (NEE): NextEra dominates the renewable energy space with its massive wind and solar assets, overshadowing Alliant’s smaller-scale projects. However, NextEra’s unregulated operations introduce higher risk, while Alliant’s regulated model offers stability.
• Duke Energy (DUK): Duke’s multi-state footprint and nuclear/renewable mix provide economies of scale, but its exposure to Southeast regulatory environments differs from Alliant’s Midwest focus. Duke’s higher dividend yield may attract income investors.
• Xcel Energy (XEL): Xcel’s aggressive carbon-reduction targets and broader geographic reach (eight states) contrast with Alliant’s regional focus. Xcel’s larger renewable investments position it better for energy transition trends, though Alliant’s localized operations ensure steady demand.