ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
TSX:ACO-Y - CA0467895094 - Common Stock
51.99 CAD
-0.01 (-0.02%)
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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACO-Y was profitable.
ACO-Y had a positive operating cash flow in the past year.
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
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.
The Return On Invested Capital of ACO-Y (3.71%) is better than 66.67% 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 3.65%.
| 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.
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.
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.
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.
Compared to 1 year ago, ACO-Y has about the same amount of shares outstanding.
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 0.77. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ACO-Y (0.77) is better than 85.71% of its industry peers.
The Debt to FCF ratio of ACO-Y is 33.61, which is on the high side as it means it would take ACO-Y, 33.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.61, ACO-Y belongs to the top 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.
The Debt to Equity ratio of ACO-Y (2.56) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.72
WACC5.12%
2.3 Liquidity
A Current Ratio of 1.61 indicates that ACO-Y should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.61, ACO-Y belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
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.
ACO-Y's Quick ratio of 1.45 is amongst the best of the industry. ACO-Y outperforms 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.
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.
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
The Earnings Per Share is expected to grow by 4.23% 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 3Y4.23%
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 11.74 indicates a reasonable valuation of ACO-Y.
The rest of the industry has a similar Price/Earnings ratio as ACO-Y.
The average S&P500 Price/Earnings ratio is at 27.08. ACO-Y is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.21, the valuation of ACO-Y can be described as very reasonable.
ACO-Y's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.67. ACO-Y is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.21 |
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.
Based on the Price/Free Cash Flow ratio, ACO-Y is valued a bit cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 8.1 |
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)1.56
PEG (5Y)1.92
EPS Next 2Y3.99%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.93, ACO-Y pays less dividend than the industry average, which is at 5.42. 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 2.34, ACO-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 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.
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 (8/26/2025, 7:00:00 PM)
51.99
-0.01 (-0.02%)
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 Cap5.85B
Analysts78.67
Price Target59.2 (13.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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)1.02%
PT rev (3m)6.28%
EPS NQ rev (1m)-0.91%
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)-4.46%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.21 | ||
| P/S | 1.15 | ||
| P/FCF | 16.12 | ||
| P/OCF | 2.49 | ||
| P/B | 1.24 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)4.43
EY8.52%
EPS(NY)4.64
Fwd EY8.92%
FCF(TTM)3.23
FCFY6.2%
OCF(TTM)20.87
OCFY40.15%
SpS45.1
BVpS42.03
TBVpS30.11
PEG (NY)1.56
PEG (5Y)1.92
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
WACC5.12%
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 3Y4.23%
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%