ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - TSX:ACO-Y - CA0467895094 - Common Stock
49.6 CAD
+0.74 (+1.51%)
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 correct valuation and a medium growth rate. ACO-Y also has an excellent dividend rating. These ratings could make ACO-Y a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
ACO-Y had positive earnings in the past year.
In the past year ACO-Y had a positive cash flow from operations.
In the past 5 years ACO-Y has always been profitable.
ACO-Y had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACO-Y (1.64%) is comparable to the rest of the industry.
ACO-Y has a better Return On Equity (9.28%) than 95.24% of its industry peers.
With a decent Return On Invested Capital value of 3.71%, ACO-Y is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACO-Y is in line with the industry average of 3.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROIC | 3.71% |
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 8.65%, ACO-Y perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
ACO-Y's Profit Margin has declined in the last couple of years.
ACO-Y's Operating Margin of 24.24% is on the low side compared to the rest of the industry. ACO-Y is outperformed by 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 (75.61%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ACO-Y has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% |
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.
ACO-Y has about the same amout of shares outstanding than it did 1 year ago.
ACO-Y has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACO-Y has a worse debt to assets ratio.
2.2 Solvency
ACO-Y has an Altman-Z score of 0.76. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
ACO-Y has a better Altman-Z score (0.76) than 85.71% of its industry peers.
ACO-Y has a debt to FCF ratio of 33.61. This is a negative value and a sign of low solvency as ACO-Y would need 33.61 years to pay back of all of its debts.
ACO-Y has a Debt to FCF ratio of 33.61. This is amongst the best in the industry. ACO-Y outperforms 95.24% of its industry peers.
ACO-Y has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.56, ACO-Y is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.73
WACC5.07%
2.3 Liquidity
A Current Ratio of 1.61 indicates that ACO-Y should not have too much problems paying its short term obligations.
ACO-Y has a Current ratio of 1.61. This is amongst the best in the industry. ACO-Y outperforms 95.24% of its industry peers.
A Quick Ratio of 1.45 indicates that ACO-Y should not have too much problems paying its short term obligations.
The Quick ratio of ACO-Y (1.45) is better than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
ACO-Y shows a small growth in Revenue. In the last year, the Revenue has grown by 7.64%.
Measured over the past years, ACO-Y shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
3.2 Future
ACO-Y is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.23% yearly.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
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.
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 11.20 indicates a reasonable valuation of ACO-Y.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-Y is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ACO-Y to the average of the S&P500 Index (27.20), we can say ACO-Y is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.69, the valuation of ACO-Y can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ACO-Y.
The average S&P500 Price/Forward Earnings ratio is at 22.70. ACO-Y is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.69 |
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 71.43% of the companies listed in the same industry.
ACO-Y's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACO-Y is cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
ACO-Y's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.49
PEG (5Y)1.83
EPS Next 2Y3.99%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, ACO-Y is a good candidate for dividend investing.
With a Dividend Yield of 4.15, ACO-Y pays less dividend than the industry average, which is at 5.16. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 50.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACO-Y is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.8%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
TSX:ACO-Y (9/16/2025, 7:00:00 PM)
49.6
+0.74 (+1.51%)
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 Cap5.56B
Analysts78.67
Price Target58.38 (17.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP50.8%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)2.9%
Min EPS beat(4)-3.78%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)4.35%
Revenue beat(2)0
Avg Revenue beat(2)-9.2%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.59%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.35%
Revenue beat(12)1
Avg Revenue beat(12)-9.18%
Revenue beat(16)2
Avg Revenue beat(16)-8.91%
PT rev (1m)-0.38%
PT rev (3m)-2.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.01%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.69 | ||
| P/S | 1.1 | ||
| P/FCF | 15.31 | ||
| P/OCF | 2.37 | ||
| P/B | 1.17 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)4.43
EY8.93%
EPS(NY)4.64
Fwd EY9.35%
FCF(TTM)3.24
FCFY6.53%
OCF(TTM)20.97
OCFY42.27%
SpS45.3
BVpS42.22
TBVpS30.24
PEG (NY)1.49
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.03% | ||
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% | ||
| FCFM | 7.15% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 238.99% | ||
| Cap/Sales | 39.13% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 113.97% | ||
| Profit Quality | 82.69% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.76 |
F-Score6
WACC5.07%
ROIC/WACC0.73
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)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y15.06%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-5.22%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y13.97%
OCF growth 3Y5.63%
OCF growth 5Y7.34%