ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
TSX:ACO-Y - Toronto Stock Exchange - CA0467895094 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to ACO-Y. ACO-Y was compared to 22 industry peers in the Multi-Utilities industry. ACO-Y has an average financial health and profitability rating. 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.
In the past 5 years ACO-Y always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.58%, ACO-Y perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
ACO-Y has a better Return On Equity (9.03%) than 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.57%, ACO-Y is in line with its industry, outperforming 50.00% 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 3.69%.
| 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
With a Profit Margin value of 8.49%, ACO-Y perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
ACO-Y's Profit Margin has declined in the last couple of years.
ACO-Y has a worse Operating Margin (23.56%) than 77.27% of its industry peers.
ACO-Y's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 76.00%, ACO-Y perfoms like the industry average, outperforming 45.45% 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 | 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.
ACO-Y has less shares outstanding than it did 5 years ago.
ACO-Y has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that ACO-Y is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, ACO-Y belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
ACO-Y has a debt to FCF ratio of 25.02. This is a negative value and a sign of low solvency as ACO-Y would need 25.02 years to pay back of all of its debts.
ACO-Y has a Debt to FCF ratio of 25.02. This is amongst the best in the industry. ACO-Y outperforms 95.45% of its industry peers.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-Y has dependencies on debt financing.
ACO-Y's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. ACO-Y is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 0.75 |
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.
With an excellent Current ratio value of 1.34, ACO-Y belongs to the best of the industry, outperforming 95.45% 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.
Looking at the Quick ratio, with a value of 1.24, ACO-Y belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.96% over the past year.
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.
Based on estimates for the next years, ACO-Y will show a small growth in Revenue. The Revenue will grow by 3.42% on average per year.
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.
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
ACO-Y is valuated correctly with a Price/Earnings ratio of 12.10.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-Y is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.17, ACO-Y is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of ACO-Y can be described as reasonable.
ACO-Y's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ACO-Y is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-Y is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACO-Y is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 8.17 |
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)3.63
PEG (5Y)1.98
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 4.98, ACO-Y's dividend is way lower than its industry peers. On top of this 90.91% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 (5/28/2025, 7:00:00 PM)
53.25
+0.25 (+0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.02%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.99B
Analysts80
Price Target55.7 (4.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)0%
PT rev (3m)3.97%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)21.3%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.19 | ||
| P/FCF | 12.29 | ||
| P/OCF | 2.49 | ||
| P/B | 1.27 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)4.4
EY8.26%
EPS(NY)4.6
Fwd EY8.65%
FCF(TTM)4.33
FCFY8.14%
OCF(TTM)21.35
OCFY40.09%
SpS44.74
BVpS42.07
TBVpS30.28
PEG (NY)3.63
PEG (5Y)1.98
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 | 0.75 |
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%