ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - TSX:ACO-Y - CA0467895094 - Common Stock
60.5 CAD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ACO-Y. ACO-Y was compared to 21 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-Y get a neutral evaluation. Nothing too spectacular is happening here. ACO-Y is quite expensive at the moment. It does show a decent growth rate.
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.
ACO-Y had positive earnings in each of the past 5 years.
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's Return On Equity of 9.28% is amongst the best of the industry. ACO-Y outperforms 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.71%, ACO-Y is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
ACO-Y has a Profit Margin (8.65%) which is comparable to the rest of the industry.
ACO-Y's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 24.24%, ACO-Y is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ACO-Y has declined.
Looking at the Gross Margin, with a value of 75.61%, ACO-Y is in line with its industry, outperforming 42.86% of the companies in the same industry.
ACO-Y's Gross Margin has been stable in the last couple of years.
| 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
ACO-Y has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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 0.79. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, ACO-Y belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
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 | 33.61 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.72
WACC5.18%
2.3 Liquidity
A Current Ratio of 1.61 indicates that ACO-Y should not have too much problems paying its short term obligations.
The Current ratio of ACO-Y (1.61) is better than 95.24% of its industry peers.
ACO-Y has a Quick Ratio of 1.45. This is a normal value and indicates that ACO-Y is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.45, ACO-Y belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
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 10.20%, which is quite good.
ACO-Y shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
Looking at the last year, ACO-Y shows a small growth in Revenue. The Revenue has grown by 7.64% in the last year.
The Revenue has been growing slightly by 0.98% on average over the past years.
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
Based on estimates for the next years, ACO-Y will show a small growth in Earnings Per Share. The EPS will grow by 4.72% on average per year.
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 3Y4.72%
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.
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
With a Price/Earnings ratio of 13.66, ACO-Y is valued correctly.
ACO-Y's Price/Earnings is on the same level as the industry average.
ACO-Y is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.04, ACO-Y is valued correctly.
ACO-Y's Price/Forward Earnings is on the same level as the industry average.
ACO-Y is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.04 |
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 61.90% of the companies listed in the same industry.
ACO-Y's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 8.55 |
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)1.82
PEG (5Y)2.24
EPS Next 2Y3.99%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.83%.
With a Dividend Yield of 3.83, ACO-Y pays less dividend than the industry average, which is at 5.46. 90.48% of the companies listed in the same industry pay a better dividend than ACO-Y!
Compared to an average S&P500 Dividend Yield of 2.38, ACO-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of ACO-Y has a limited annual growth rate of 3.93%.
ACO-Y has been paying a dividend for at least 10 years, so it has a reliable track record.
ACO-Y 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
50.80% of the earnings are spent on dividend by ACO-Y. This is a bit on the high side, but may be sustainable.
ACO-Y's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.8%
EPS Next 2Y3.99%
EPS Next 3Y4.72%
TSX:ACO-Y (10/31/2025, 7:00:00 PM)
60.5
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.15%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap6.78B
Revenue(TTM)5.08B
Net Income(TTM)439.00M
Analysts78.67
Price Target57.49 (-4.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-1.53%
PT rev (3m)-1.9%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.34 | ||
| P/FCF | 18.68 | ||
| P/OCF | 2.89 | ||
| P/B | 1.43 | ||
| P/tB | 2 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)4.43
EY7.32%
EPS(NY)4.64
Fwd EY7.67%
FCF(TTM)3.24
FCFY5.35%
OCF(TTM)20.96
OCFY34.64%
SpS45.28
BVpS42.2
TBVpS30.23
PEG (NY)1.82
PEG (5Y)2.24
Graham Number64.85
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%
ROICexgc growth 3Y1.58%
ROICexgc 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 | 0.79 |
F-Score6
WACC5.18%
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)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.72%
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 Year427.2%
EBIT Next 3Y80.42%
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%
ATCO LTD -CL 'II' / ACO-Y.CA FAQ
Can you provide the ChartMill fundamental rating for ATCO LTD -CL 'II'?
ChartMill assigns a fundamental rating of 5 / 10 to ACO-Y.CA.
What is the valuation status of ATCO LTD -CL 'II' (ACO-Y.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ATCO LTD -CL 'II' (ACO-Y.CA). This can be considered as Overvalued.
Can you provide the profitability details for ATCO LTD -CL 'II'?
ATCO LTD -CL 'II' (ACO-Y.CA) has a profitability rating of 5 / 10.
What is the expected EPS growth for ATCO LTD -CL 'II' (ACO-Y.CA) stock?
The Earnings per Share (EPS) of ATCO LTD -CL 'II' (ACO-Y.CA) is expected to grow by 7.51% in the next year.
Can you provide the dividend sustainability for ACO-Y stock?
The dividend rating of ATCO LTD -CL 'II' (ACO-Y.CA) is 6 / 10 and the dividend payout ratio is 50.8%.