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Atlas Corporation (ATCO) Stock Fundamental Analysis

USA - NYSE:ATCO - MHY0436Q1098 - Common Stock

15.48 USD
0 (0%)
Last: 3/27/2023, 8:27:59 PM
15.49 USD
+0.01 (+0.06%)
After Hours: 3/27/2023, 8:27:59 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ATCO. ATCO was compared to 6 industry peers in the Transportation Infrastructure industry. There are concerns on the financial health of ATCO while its profitability can be described as average. ATCO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year ATCO was profitable.
In the past year ATCO had a positive cash flow from operations.
ATCO had positive earnings in each of the past 5 years.
In the past 5 years ATCO always reported a positive cash flow from operatings.
ATCO Yearly Net Income VS EBIT VS OCF VS FCFATCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M

1.2 Ratios

With a Return On Assets value of 4.97%, ATCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.69%, ATCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
ATCO has a Return On Invested Capital (5.65%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATCO is significantly below the industry average of 18.98%.
Industry RankSector Rank
ROA 4.97%
ROE 12.69%
ROIC 5.65%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.96%
ROIC(5y)N/A
ATCO Yearly ROA, ROE, ROICATCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

1.3 Margins

ATCO has a better Profit Margin (33.08%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of ATCO has grown nicely.
Looking at the Operating Margin, with a value of 43.23%, ATCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ATCO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 79.18%, ATCO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ATCO has remained more or less at the same level.
Industry RankSector Rank
OM 43.23%
PM (TTM) 33.08%
GM 79.18%
OM growth 3Y-10.7%
OM growth 5Y4.35%
PM growth 3Y0.57%
PM growth 5Y19.94%
GM growth 3Y-7.41%
GM growth 5Y0.37%
ATCO Yearly Profit, Operating, Gross MarginsATCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 60 80

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1

2. Health

2.1 Basic Checks

ATCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ATCO has more shares outstanding
The debt/assets ratio for ATCO has remained at the same level compared to a year ago.
ATCO Yearly Shares OutstandingATCO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M 250M
ATCO Yearly Total Debt VS Total AssetsATCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

ATCO has an Altman-Z score of 0.75. This is a bad value and indicates that ATCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.75, ATCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
ATCO has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
ATCO's Debt to Equity ratio of 1.22 is fine compared to the rest of the industry. ATCO outperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF N/A
Altman-Z 0.75
ROIC/WACC0.89
WACC6.37%
ATCO Yearly LT Debt VS Equity VS FCFATCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B

2.3 Liquidity

A Current Ratio of 0.57 indicates that ATCO may have some problems paying its short term obligations.
With a Current ratio value of 0.57, ATCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that ATCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, ATCO is doing worse than 75.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.52
ATCO Yearly Current Assets VS Current LiabilitesATCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

ATCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
Measured over the past years, ATCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.00% on average per year.
ATCO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.09%.
ATCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.35% yearly.
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y18%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y15.35%
Sales Q2Q%1.91%

3.2 Future

The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
EPS Next Y6.73%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y13.43%
Revenue Next 3Y12.32%
Revenue Next 5Y8.54%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ATCO Yearly Revenue VS EstimatesATCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
ATCO Yearly EPS VS EstimatesATCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.25, the valuation of ATCO can be described as reasonable.
ATCO's Price/Earnings ratio is rather cheap when compared to the industry. ATCO is cheaper than 100.00% of the companies in the same industry.
ATCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.70.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of ATCO.
100.00% of the companies in the same industry are more expensive than ATCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATCO to the average of the S&P500 Index (23.15), we can say ATCO is valued rather cheaply.
Industry RankSector Rank
PE 10.25
Fwd PE 9.61
ATCO Price Earnings VS Forward Price EarningsATCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ATCO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.02
ATCO Per share dataATCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ATCO may justify a higher PE ratio.
A more expensive valuation may be justified as ATCO's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)1.52
PEG (5Y)0.57
EPS Next 2Y9.5%
EPS Next 3Y12.36%

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4

5. Dividend

5.1 Amount

ATCO has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 3.98, ATCO pays a better dividend. On top of this ATCO pays more dividend than 87.50% of the companies listed in the same industry.
With a Dividend Yield of 1.26, ATCO pays less dividend than the S&P500 average, which is at 2.44.
Industry RankSector Rank
Dividend Yield 1.26%

5.2 History

ATCO has paid a dividend for less than 5 years, so there is no long track record yet.
ATCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
ATCO Yearly Dividends per shareATCO Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

ATCO pays out 32.07% of its income as dividend. This is a sustainable payout ratio.
DP32.07%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
ATCO Yearly Income VS Free CF VS DividendATCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M -400M -600M
ATCO Dividend Payout.ATCO Dividend Payout, showing the Payout Ratio.ATCO Dividend Payout.PayoutRetained Earnings

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Atlas Corporation

NYSE:ATCO (3/27/2023, 8:27:59 PM)

After market: 15.49 +0.01 (+0.06%)

15.48

0 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-15 2023-02-15/amc
Earnings (Next)05-09 2023-05-09/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.36B
Analysts78
Price Target17.21 (11.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.26%
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP32.07%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.71%
Min EPS beat(2)-17.82%
Max EPS beat(2)-3.61%
EPS beat(4)0
Avg EPS beat(4)-9.08%
Min EPS beat(4)-17.82%
Max EPS beat(4)-3.61%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.11%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.47%
PT rev (3m)5.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
Industry RankSector Rank
PE 10.25
Fwd PE 9.61
P/S 2.57
P/FCF N/A
P/OCF 5.09
P/B 0.98
P/tB 1.02
EV/EBITDA 9.02
EPS(TTM)1.51
EY9.75%
EPS(NY)1.61
Fwd EY10.41%
FCF(TTM)-1.36
FCFYN/A
OCF(TTM)3.04
OCFY19.65%
SpS6.03
BVpS15.72
TBVpS15.18
PEG (NY)1.52
PEG (5Y)0.57
Profitability
Industry RankSector Rank
ROA 4.97%
ROE 12.69%
ROCE N/A
ROIC 5.65%
ROICexc 5.82%
ROICexgc 5.91%
OM 43.23%
PM (TTM) 33.08%
GM 79.18%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.96%
ROIC(5y)N/A
ROICexc(3y)5.85%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-9.77%
ROICexcg growth 5Y5.36%
ROICexc growth 3Y-9.48%
ROICexc growth 5Y5.46%
OM growth 3Y-10.7%
OM growth 5Y4.35%
PM growth 3Y0.57%
PM growth 5Y19.94%
GM growth 3Y-7.41%
GM growth 5Y0.37%
F-Score5
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF N/A
Debt/EBITDA 5.39
Cap/Depr 327.01%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.57
Quick Ratio 0.52
Altman-Z 0.75
F-Score5
WACC6.37%
ROIC/WACC0.89
Cap/Depr(3y)326.15%
Cap/Depr(5y)247.7%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y18%
EPS Q2Q%-9.52%
EPS Next Y6.73%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y15.35%
Sales Q2Q%1.91%
Revenue Next Year12.3%
Revenue Next 2Y13.43%
Revenue Next 3Y12.32%
Revenue Next 5Y8.54%
EBIT growth 1Y4.32%
EBIT growth 3Y2.22%
EBIT growth 5Y20.36%
EBIT Next Year69.04%
EBIT Next 3Y31.68%
EBIT Next 5Y22.33%
FCF growth 1Y39.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.29%
OCF growth 3Y3.03%
OCF growth 5Y17%