ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
TSX:ACO-X - CA0467894006 - Common Stock
49.01 CAD
+0.01 (+0.02%)
Taking everything into account, ACO-X scores 5 out of 10 in our fundamental rating. ACO-X was compared to 21 industry peers in the Multi-Utilities industry. ACO-X has an average financial health and profitability rating. ACO-X has a correct valuation and a medium growth rate. ACO-X also has an excellent dividend rating. These ratings would make ACO-X suitable for dividend investing!
1. Profitability
1.1 Basic Checks
ACO-X had positive earnings in the past year.
ACO-X had a positive operating cash flow in the past year.
In the past 5 years ACO-X has always been profitable.
ACO-X had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACO-X has a Return On Assets (1.64%) which is in line with its industry peers.
ACO-X has a better Return On Equity (9.28%) than 100.00% of its industry peers.
ACO-X's Return On Invested Capital of 3.71% is fine compared to the rest of the industry. ACO-X outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACO-X is in line with the industry average of 3.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROIC | 3.71% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
ACO-X has a Profit Margin of 8.65%. This is comparable to the rest of the industry: ACO-X outperforms 47.62% of its industry peers.
ACO-X's Profit Margin has declined in the last couple of years.
ACO-X has a Operating Margin of 24.24%. This is in the lower half of the industry: ACO-X underperforms 71.43% of its industry peers.
ACO-X's Operating Margin has declined in the last couple of years.
The Gross Margin of ACO-X (75.61%) is comparable to the rest of the industry.
ACO-X's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACO-X is destroying value.
Compared to 1 year ago, ACO-X has about the same amount of shares outstanding.
The number of shares outstanding for ACO-X has been reduced compared to 5 years ago.
The debt/assets ratio for ACO-X is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that ACO-X is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, ACO-X belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of ACO-X is 33.61, which is on the high side as it means it would take ACO-X, 33.61 years of fcf income to pay off all of its debts.
ACO-X has a Debt to FCF ratio of 33.61. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
ACO-X has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
ACO-X's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. ACO-X is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.73
WACC5.06%
2.3 Liquidity
ACO-X has a Current Ratio of 1.61. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ACO-X (1.61) is better than 100.00% of its industry peers.
A Quick Ratio of 1.45 indicates that ACO-X should not have too much problems paying its short term obligations.
ACO-X has a Quick ratio of 1.45. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
ACO-X shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
ACO-X shows a small growth in Revenue. In the last year, the Revenue has grown by 7.64%.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
3.2 Future
The Earnings Per Share is expected to grow by 4.23% on average over the next years.
ACO-X is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.06 indicates a reasonable valuation of ACO-X.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-X is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.02, ACO-X is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.56, the valuation of ACO-X can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACO-X indicates a somewhat cheap valuation: ACO-X is cheaper than 61.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ACO-X to the average of the S&P500 Index (22.66), we can say ACO-X is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACO-X indicates a somewhat cheap valuation: ACO-X is cheaper than 76.19% of the companies listed in the same industry.
ACO-X's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACO-X is cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.47
PEG (5Y)1.81
EPS Next 2Y3.99%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, ACO-X is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.97, ACO-X's dividend is way lower than its industry peers. On top of this 95.24% of the companies listed in the same industry pay a better dividend than ACO-X!
ACO-X's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 3.93%.
ACO-X has paid a dividend for at least 10 years, which is a reliable track record.
ACO-X has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
ACO-X pays out 50.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACO-X is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.8%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
TSX:ACO-X (9/8/2025, 7:00:00 PM)
49.01
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.52%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap5.52B
Analysts78.67
Price Target56.83 (15.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP50.8%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)2.9%
Min EPS beat(4)-3.78%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)4.35%
Revenue beat(2)0
Avg Revenue beat(2)-9.2%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.59%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.35%
Revenue beat(12)1
Avg Revenue beat(12)-9.18%
Revenue beat(16)2
Avg Revenue beat(16)-8.91%
PT rev (1m)-0.26%
PT rev (3m)-0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.01%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.56 | ||
| P/S | 1.09 | ||
| P/FCF | 15.19 | ||
| P/OCF | 2.35 | ||
| P/B | 1.17 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)4.43
EY9.04%
EPS(NY)4.64
Fwd EY9.47%
FCF(TTM)3.23
FCFY6.58%
OCF(TTM)20.87
OCFY42.59%
SpS45.1
BVpS42.03
TBVpS30.11
PEG (NY)1.47
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.03% | ||
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% | ||
| FCFM | 7.15% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
ROICexc(3y)4.06%
ROICexc(5y)3.97%
ROICexgc(3y)4.27%
ROICexgc(5y)4.16%
ROCE(3y)5.04%
ROCE(5y)4.9%
ROICexcg growth 3Y1.58%
ROICexcg growth 5Y-6.25%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-6.55%
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 238.99% | ||
| Cap/Sales | 39.13% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 113.97% | ||
| Profit Quality | 82.69% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.76 |
F-Score6
WACC5.06%
ROIC/WACC0.73
Cap/Depr(3y)212.07%
Cap/Depr(5y)195.52%
Cap/Sales(3y)33.77%
Cap/Sales(5y)31.75%
Profit Quality(3y)134.57%
Profit Quality(5y)187.54%
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y15.06%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-5.22%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y13.97%
OCF growth 3Y5.63%
OCF growth 5Y7.34%