ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
TSX:ACO-X - Toronto Stock Exchange - CA0467894006 - Common Stock - Currency: CAD
ACO-X gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-X get a neutral evaluation. Nothing too spectacular is happening here. ACO-X has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACO-X had positive earnings in the past year.
In the past year ACO-X had a positive cash flow from operations.
In the past 5 years ACO-X has always been profitable.
In the past 5 years ACO-X always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.61%, ACO-X perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
ACO-X has a Return On Equity of 9.28%. This is amongst the best in the industry. ACO-X outperforms 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.69%, ACO-X is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
ACO-X had an Average Return On Invested Capital over the past 3 years of 3.92%. This is in line with the industry average of 3.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 9.28% | ||
| ROIC | 3.69% |
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
With a Profit Margin value of 8.70%, ACO-X perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Profit Margin of ACO-X has declined.
The Operating Margin of ACO-X (24.30%) is comparable to the rest of the industry.
ACO-X's Operating Margin has declined in the last couple of years.
ACO-X has a Gross Margin (76.51%) which is in line with its industry peers.
ACO-X's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 8.7% | ||
| GM | 76.51% |
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
ACO-X has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ACO-X has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACO-X has less shares outstanding
The debt/assets ratio for ACO-X is higher compared to a year ago.
2.2 Solvency
ACO-X has an Altman-Z score of 0.75. This is a bad value and indicates that ACO-X is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.75, ACO-X belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
The Debt to FCF ratio of ACO-X is 30.48, which is on the high side as it means it would take ACO-X, 30.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 30.48, ACO-X belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
ACO-X has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
ACO-X has a Debt to Equity ratio of 2.56. This is comparable to the rest of the industry: ACO-X outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 30.48 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.74
WACC4.95%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ACO-X should not have too much problems paying its short term obligations.
The Current ratio of ACO-X (1.38) is better than 95.45% of its industry peers.
A Quick Ratio of 1.28 indicates that ACO-X should not have too much problems paying its short term obligations.
The Quick ratio of ACO-X (1.28) is better than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.28 |
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 12.30%, which is quite good.
Measured over the past 5 years, ACO-X shows a small growth in Earnings Per Share. The EPS has been growing by 6.10% on average per year.
The Revenue has been growing slightly by 4.24% in the past year.
Measured over the past years, ACO-X shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)12.3%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%15.04%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%13.84%
3.2 Future
Based on estimates for the next years, ACO-X will show a small growth in Earnings Per Share. The EPS will grow by 2.86% on average per year.
Based on estimates for the next years, ACO-X will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue Next Year4.55%
Revenue Next 2Y3.67%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ACO-X is valuated reasonably with a Price/Earnings ratio of 11.95.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-X is on the same level as its industry peers.
ACO-X's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
A Price/Forward Earnings ratio of 11.57 indicates a reasonable valuation of ACO-X.
ACO-X's Price/Forward Earnings ratio is in line with the industry average.
ACO-X is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.57 |
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 72.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACO-X is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACO-X does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.58
PEG (5Y)1.96
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
ACO-X has a Yearly Dividend Yield of 4.02%, which is a nice return.
With a Dividend Yield of 4.02, ACO-X pays less dividend than the industry average, which is at 5.20. 90.91% 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 | 4.02% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 3.93%.
ACO-X has been paying a dividend for at least 10 years, so it has a reliable track record.
ACO-X has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
51.16% of the earnings are spent on dividend by ACO-X. This is a bit on the high side, but may be sustainable.
The dividend of ACO-X is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.16%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
TSX:ACO-X (5/1/2025, 7:00:00 PM)
51.27
-0.56 (-1.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.02%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.76B
Analysts80
Price Target55.25 (7.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP51.16%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)3.12%
Max EPS beat(2)10.76%
EPS beat(4)4
Avg EPS beat(4)5.25%
Min EPS beat(4)1.44%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.95%
EPS beat(12)10
Avg EPS beat(12)4.95%
EPS beat(16)13
Avg EPS beat(16)5.53%
Revenue beat(2)0
Avg Revenue beat(2)-11.97%
Min Revenue beat(2)-18.52%
Max Revenue beat(2)-5.42%
Revenue beat(4)0
Avg Revenue beat(4)-12.18%
Min Revenue beat(4)-18.95%
Max Revenue beat(4)-5.42%
Revenue beat(8)0
Avg Revenue beat(8)-12.84%
Revenue beat(12)1
Avg Revenue beat(12)-9.75%
Revenue beat(16)2
Avg Revenue beat(16)-8.99%
PT rev (1m)0.93%
PT rev (3m)6.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.9%
EPS NY rev (1m)0%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.17 | ||
| P/FCF | 14.66 | ||
| P/OCF | 2.62 | ||
| P/B | 1.24 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)4.29
EY8.37%
EPS(NY)4.43
Fwd EY8.65%
FCF(TTM)3.5
FCFY6.82%
OCF(TTM)19.54
OCFY38.12%
SpS43.96
BVpS41.21
TBVpS29.46
PEG (NY)3.58
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 9.28% | ||
| ROCE | 4.77% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.79% | ||
| ROICexgc | 4% | ||
| OM | 24.3% | ||
| PM (TTM) | 8.7% | ||
| GM | 76.51% | ||
| FCFM | 7.95% |
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-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 30.48 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 222.44% | ||
| Cap/Sales | 36.5% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 109.2% | ||
| Profit Quality | 91.4% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 0.75 |
F-Score4
WACC4.95%
ROIC/WACC0.74
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)12.3%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%15.04%
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue 1Y (TTM)4.24%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%13.84%
Revenue Next Year4.55%
Revenue Next 2Y3.67%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
EBIT growth 1Y1.69%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.91%
EBIT Next 3Y79.63%
EBIT Next 5YN/A
FCF growth 1Y-1.75%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y11.81%
OCF growth 3Y5.63%
OCF growth 5Y7.34%