ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
TSX:ACO-Y - Toronto Stock Exchange - CA0467895094 - Common Stock - Currency: CAD
ACO-Y gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Multi-Utilities industry. ACO-Y has an average financial health and profitability rating. ACO-Y has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ACO-Y was profitable.
In the past year ACO-Y had a positive cash flow from operations.
ACO-Y had positive earnings in each of the past 5 years.
Each year in the past 5 years ACO-Y had a positive operating cash flow.
1.2 Ratios
ACO-Y has a Return On Assets (1.58%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.03%, ACO-Y belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
ACO-Y has a Return On Invested Capital of 3.57%. This is comparable to the rest of the industry: ACO-Y outperforms 52.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-Y 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-Y's Profit Margin of 8.49% is in line compared to the rest of the industry. ACO-Y outperforms 42.86% of its industry peers.
ACO-Y's Profit Margin has declined in the last couple of years.
The Operating Margin of ACO-Y (23.56%) is worse than 76.19% of its industry peers.
In the last couple of years the Operating Margin of ACO-Y has declined.
ACO-Y has a Gross Margin of 76.00%. This is comparable to the rest of the industry: ACO-Y outperforms 42.86% of its industry peers.
ACO-Y'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-Y is destroying value.
The number of shares outstanding for ACO-Y remains at a similar level compared to 1 year ago.
The number of shares outstanding for ACO-Y has been reduced compared to 5 years ago.
The debt/assets ratio for ACO-Y is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that ACO-Y is in the distress zone and has some risk of bankruptcy.
ACO-Y has a better Altman-Z score (0.74) than 85.71% of its industry peers.
The Debt to FCF ratio of ACO-Y is 25.02, which is on the high side as it means it would take ACO-Y, 25.02 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 25.02, ACO-Y belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-Y has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.56, ACO-Y is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.71
WACC5.01%
2.3 Liquidity
ACO-Y has a Current Ratio of 1.34. This is a normal value and indicates that ACO-Y is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.34, ACO-Y belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
ACO-Y has a Quick Ratio of 1.24. This is a normal value and indicates that ACO-Y is financially healthy and should not expect problems in meeting its short term obligations.
ACO-Y's Quick ratio of 1.24 is amongst the best of the industry. ACO-Y outperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ACO-Y 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-Y shows a small growth in Earnings Per Share. The EPS has been growing by 6.10% on average per year.
ACO-Y shows a small growth in Revenue. In the last year, the Revenue has grown by 6.84%.
ACO-Y 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
Based on estimates for the next years, ACO-Y will show a small growth in Earnings Per Share. The EPS will grow by 2.86% on average per year.
ACO-Y is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.42% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of ACO-Y.
ACO-Y's Price/Earnings is on the same level as the industry average.
ACO-Y is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
ACO-Y is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACO-Y is on the same level as its industry peers.
ACO-Y is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACO-Y indicates a somewhat cheap valuation: ACO-Y is cheaper than 66.67% of the companies listed in the same industry.
61.90% of the companies in the same industry are more expensive than ACO-Y, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 8.05 |
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)3.48
PEG (5Y)1.9
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 4.02%, which is a nice return.
Compared to an average industry Dividend Yield of 5.45, ACO-Y's dividend is way lower than its industry peers. On top of this 90.48% of the companies listed in the same industry pay a better dividend than ACO-Y!
ACO-Y's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of ACO-Y has a limited annual growth rate of 3.93%.
ACO-Y has paid a dividend for at least 10 years, which is a reliable track record.
ACO-Y 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-Y pays out 51.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
ACO-Y's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.99%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
TSX:ACO-Y (7/11/2025, 7:00:00 PM)
51.02
-0.39 (-0.76%)
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 Cap5.74B
Analysts78.67
Price Target57.71 (13.11%)
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)-3.39%
PT rev (3m)3.61%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 11.6 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.14 | ||
| P/FCF | 11.79 | ||
| P/OCF | 2.39 | ||
| P/B | 1.21 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)4.4
EY8.62%
EPS(NY)4.6
Fwd EY9.02%
FCF(TTM)4.33
FCFY8.48%
OCF(TTM)21.33
OCFY41.81%
SpS44.69
BVpS42.03
TBVpS30.25
PEG (NY)3.48
PEG (5Y)1.9
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
WACC5.01%
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 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%