ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - TSX:ACO-Y - CA0467895094 - Common Stock
51.41 CAD
+0.04 (+0.08%)
Overall ACO-Y gets a fundamental rating of 5 out of 10. We evaluated ACO-Y against 21 industry peers in the Multi-Utilities industry. ACO-Y has only an average score on both its financial health and profitability. ACO-Y has a correct valuation and a medium growth rate.
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.
In the past 5 years ACO-Y has always been profitable.
Each year in the past 5 years ACO-Y had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.64%, ACO-Y perfoms like the industry average, outperforming 42.86% of the companies in the same 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.
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
The Profit Margin of ACO-Y (8.65%) is comparable to the rest of the industry.
ACO-Y's Profit Margin has declined in the last couple of years.
ACO-Y has a worse Operating Margin (24.24%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of ACO-Y has declined.
With a Gross Margin value of 75.61%, ACO-Y perfoms like the industry average, 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACO-Y is destroying value.
Compared to 1 year ago, ACO-Y has about the same amount of shares outstanding.
Compared to 5 years ago, ACO-Y has less shares outstanding
The debt/assets ratio for ACO-Y is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that ACO-Y is in the distress zone and has some risk of bankruptcy.
ACO-Y has a Altman-Z score of 0.77. This is amongst the best in the industry. ACO-Y outperforms 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's Debt to FCF ratio of 33.61 is amongst the best of 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.
ACO-Y has a Debt to Equity ratio of 2.56. This is in the lower half of the industry: ACO-Y underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.73
WACC5.08%
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's Current ratio of 1.61 is amongst the best of 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.
Looking at the Quick ratio, with a value of 1.45, ACO-Y belongs to the top 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
The Earnings Per Share has grown by an nice 10.20% over the past year.
ACO-Y shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
The Revenue has been growing slightly by 7.64% in the past 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
The Earnings Per Share is expected to grow by 4.72% on average over the next years.
Based on estimates for the next years, ACO-Y will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
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
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
ACO-Y is valuated reasonably with a Price/Earnings ratio of 11.60.
The rest of the industry has a similar Price/Earnings ratio as ACO-Y.
Compared to an average S&P500 Price/Earnings ratio of 27.70, ACO-Y is valued rather cheaply.
The Price/Forward Earnings ratio is 11.08, which indicates a very decent valuation of ACO-Y.
ACO-Y's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.15, ACO-Y is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-Y is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ACO-Y's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACO-Y is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.54
PEG (5Y)1.9
EPS Next 2Y3.99%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.49, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 3Y4.72%
TSX:ACO-Y (10/8/2025, 7:00:00 PM)
51.41
+0.04 (+0.08%)
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 Cap5.76B
Analysts78.67
Price Target58.38 (13.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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)-1.39%
PT rev (3m)1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.51%
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)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.13 | ||
| P/FCF | 15.87 | ||
| P/OCF | 2.45 | ||
| P/B | 1.22 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)4.43
EY8.62%
EPS(NY)4.64
Fwd EY9.02%
FCF(TTM)3.24
FCFY6.3%
OCF(TTM)20.97
OCFY40.78%
SpS45.3
BVpS42.22
TBVpS30.24
PEG (NY)1.54
PEG (5Y)1.9
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 | 0.77 |
F-Score6
WACC5.08%
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 3Y4.72%
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%