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 21 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
In the past year ACO-X was profitable.
In the past year ACO-X had a positive cash flow from operations.
ACO-X had positive earnings in each of the past 5 years.
Each year in the past 5 years ACO-X had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.58%, ACO-X perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
The Return On Equity of ACO-X (9.03%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.57%, ACO-X is in line with its industry, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.66%.
| 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
ACO-X has a Profit Margin (8.49%) which is in line with its industry peers.
ACO-X's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 23.56%, ACO-X is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of ACO-X has declined.
ACO-X has a Gross Margin of 76.00%. This is comparable to the rest of the industry: ACO-X outperforms 47.62% 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.
Compared to 1 year ago, ACO-X has about the same amount of shares outstanding.
Compared to 5 years ago, ACO-X has less shares outstanding
ACO-X has a worse debt/assets ratio than last year.
2.2 Solvency
ACO-X has an Altman-Z score of 0.74. This is a bad value and indicates that ACO-X is not financially healthy and even has some risk of bankruptcy.
ACO-X has a Altman-Z score of 0.74. This is amongst the best in the industry. ACO-X outperforms 80.95% of its industry peers.
ACO-X has a debt to FCF ratio of 25.02. This is a negative value and a sign of low solvency as ACO-X would need 25.02 years to pay back of all of its debts.
ACO-X has a Debt to FCF ratio of 25.02. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-X has dependencies on debt financing.
ACO-X has a worse Debt to Equity ratio (2.56) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.71
WACC5.03%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ACO-X should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.34, ACO-X belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ACO-X has a Quick Ratio of 1.24. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
ACO-X has a Quick ratio of 1.24. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.96% over the past year.
ACO-X shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
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.
ACO-X is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y1.29%
Revenue Next 3Y2.04%
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 11.49, 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 26.54. ACO-X is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.98 indicates a reasonable valuation of ACO-X.
Based on the Price/Forward Earnings ratio, ACO-X is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
ACO-X is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.98 |
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 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACO-X indicates a rather cheap valuation: ACO-X is cheaper than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 8.02 |
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)3.44
PEG (5Y)1.88
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, ACO-X is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.22, 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!
Compared to an average S&P500 Dividend Yield of 2.40, ACO-X pays a better dividend.
| 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 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 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 (8/7/2025, 7:00:00 PM)
50.56
+0.16 (+0.32%)
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 Cap5.69B
Analysts78.67
Price Target56.97 (12.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP51.99%
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)0.04%
PT rev (3m)3.12%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.34%
Revenue NY rev (3m)-4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.98 | ||
| P/S | 1.13 | ||
| P/FCF | 11.68 | ||
| P/OCF | 2.37 | ||
| P/B | 1.2 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)4.4
EY8.7%
EPS(NY)4.6
Fwd EY9.11%
FCF(TTM)4.33
FCFY8.56%
OCF(TTM)21.33
OCFY42.19%
SpS44.69
BVpS42.03
TBVpS30.25
PEG (NY)3.44
PEG (5Y)1.88
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
WACC5.03%
ROIC/WACC0.71
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 Year-0.48%
Revenue Next 2Y1.29%
Revenue Next 3Y2.04%
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%