ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
TSX:ACO-X - Toronto Stock Exchange - CA0467894006 - Common Stock - Currency: CAD
Taking everything into account, ACO-X scores 5 out of 10 in our fundamental rating. ACO-X was compared to 22 industry peers in the Multi-Utilities industry. ACO-X has an average financial health and profitability rating. ACO-X is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACO-X was profitable.
ACO-X had a positive operating cash flow in the past year.
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
ACO-X has a Return On Assets (1.58%) which is comparable to the rest of the industry.
The Return On Equity of ACO-X (9.03%) is better than 100.00% of its industry peers.
ACO-X has a Return On Invested Capital (3.57%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.69%.
| 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
The Profit Margin of ACO-X (8.49%) is comparable to the rest of the industry.
ACO-X's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 23.56%, ACO-X is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ACO-X has declined.
Looking at the Gross Margin, with a value of 76.00%, ACO-X is in line with its industry, outperforming 50.00% of the companies in the same industry.
ACO-X's Gross Margin has been stable in the last couple of years.
| 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
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.
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
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 81.82% 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.
The Debt to FCF ratio of ACO-X (25.02) is better than 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 has a worse Debt to Equity ratio (2.56) than 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
ACO-X has a Current Ratio of 1.34. 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 (1.34) is better 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.
ACO-X's Quick ratio of 1.24 is amongst the best of 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
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%.
The Revenue has been growing slightly by 0.98% on average over the past years.
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
A Price/Earnings ratio of 11.82 indicates a reasonable valuation of ACO-X.
The rest of the industry has a similar Price/Earnings ratio as ACO-X.
ACO-X's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 11.29, the valuation of ACO-X can be described as reasonable.
Based on the Price/Forward Earnings ratio, ACO-X is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
ACO-X is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-X is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
ACO-X's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACO-X is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | 8.1 |
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)3.54
PEG (5Y)1.94
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, ACO-X has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.45, ACO-X's dividend is way lower than its industry peers. On top of this 95.45% 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 | 3.92% |
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 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
51.99% 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.
DP51.99%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
TSX:ACO-X (6/13/2025, 7:00:00 PM)
51.99
+0.46 (+0.89%)
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 Cap5.84B
Analysts80
Price Target56.95 (9.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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)3.08%
PT rev (3m)4.04%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
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%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.29 | ||
| P/S | 1.16 | ||
| P/FCF | 12 | ||
| P/OCF | 2.44 | ||
| P/B | 1.24 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)4.4
EY8.46%
EPS(NY)4.6
Fwd EY8.86%
FCF(TTM)4.33
FCFY8.33%
OCF(TTM)21.35
OCFY41.07%
SpS44.74
BVpS42.07
TBVpS30.28
PEG (NY)3.54
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%