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.
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's Return On Assets of 1.58% is in line compared to the rest of the industry. ACO-X outperforms 50.00% of its industry peers.
ACO-X's Return On Equity of 9.03% is amongst the best of the industry. ACO-X outperforms 100.00% of its industry peers.
With a Return On Invested Capital value of 3.57%, ACO-X perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACO-X is in line with the industry average of 3.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.03% | ||
| ROIC | 3.57% |
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 8.49%, ACO-X perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ACO-X's Profit Margin has declined in the last couple of years.
ACO-X has a Operating Margin of 23.56%. This is in the lower half of the industry: ACO-X underperforms 72.73% of its industry peers.
ACO-X's Operating Margin has declined in the last couple of years.
ACO-X's Gross Margin of 76.00% is in line compared to the rest of the industry. ACO-X outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of ACO-X has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.56% | ||
| PM (TTM) | 8.49% | ||
| GM | 76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-X is destroying value.
ACO-X has about the same amout of shares outstanding than it did 1 year ago.
ACO-X has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACO-X has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, 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 0.74, ACO-X belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Debt to FCF ratio of ACO-X is 25.02, which is on the high side as it means it would take ACO-X, 25.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.02, ACO-X belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-X has dependencies on debt 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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.72
WACC4.99%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ACO-X should not have too much problems paying its short term obligations.
ACO-X has a better Current ratio (1.34) than 100.00% of its industry peers.
A Quick Ratio of 1.24 indicates that ACO-X should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.24, ACO-X belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 |
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 11.96%, 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.
ACO-X shows a small growth in Revenue. In the last year, the Revenue has grown by 6.84%.
ACO-X shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)11.96%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%8.33%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.57%
3.2 Future
ACO-X is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.86% yearly.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y3.52%
Revenue Next 3Y3.42%
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
Based on the Price/Earnings ratio of 11.84, the valuation of ACO-X can be described as reasonable.
ACO-X's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. ACO-X is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.31, which indicates a very decent valuation of ACO-X.
Based on the Price/Forward Earnings ratio, ACO-X is valued a bit cheaper than 63.64% of the companies in the same industry.
ACO-X is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
ACO-X's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACO-X is cheaper than 68.18% of the companies in the same industry.
63.64% of the companies in the same industry are more expensive than ACO-X, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.55
PEG (5Y)1.94
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, ACO-X has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.86, ACO-X pays less dividend than the industry average, which is at 4.98. 95.45% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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
ACO-X pays out 51.99% of its income as dividend. 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.
DP51.99%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
TSX:ACO-X (5/23/2025, 7:00:00 PM)
52.09
+0.82 (+1.6%)
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 Cap5.86B
Analysts80
Price Target55.25 (6.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP51.99%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)1.49%
Max EPS beat(2)3.12%
EPS beat(4)4
Avg EPS beat(4)5.26%
Min EPS beat(4)1.49%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.56%
EPS beat(12)10
Avg EPS beat(12)4.53%
EPS beat(16)13
Avg EPS beat(16)5.41%
Revenue beat(2)0
Avg Revenue beat(2)-9.61%
Min Revenue beat(2)-18.52%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.9%
Min Revenue beat(4)-18.95%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.58%
Revenue beat(12)1
Avg Revenue beat(12)-9.63%
Revenue beat(16)2
Avg Revenue beat(16)-7.85%
PT rev (1m)0.93%
PT rev (3m)5.35%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)21.3%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.31 | ||
| P/S | 1.16 | ||
| P/FCF | 12.02 | ||
| P/OCF | 2.44 | ||
| P/B | 1.24 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)4.4
EY8.45%
EPS(NY)4.6
Fwd EY8.84%
FCF(TTM)4.33
FCFY8.32%
OCF(TTM)21.35
OCFY40.99%
SpS44.74
BVpS42.07
TBVpS30.28
PEG (NY)3.55
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.03% | ||
| ROCE | 4.66% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.92% | ||
| OM | 23.56% | ||
| PM (TTM) | 8.49% | ||
| GM | 76% | ||
| FCFM | 9.68% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Debt/EBITDA | 6.02 | ||
| Cap/Depr | 233.01% | ||
| Cap/Sales | 38.04% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 119.64% | ||
| Profit Quality | 114.05% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.74 |
F-Score4
WACC4.99%
ROIC/WACC0.72
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)11.96%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%8.33%
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.57%
Revenue Next Year4.04%
Revenue Next 2Y3.52%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
EBIT growth 1Y6.37%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-22.33%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y6.1%
OCF growth 3Y5.63%
OCF growth 5Y7.34%