Atlas Corporation (ATCO)
MHY0436Q1098 - Common Stock
ATCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 7 industry peers in the Transportation Infrastructure industry. ATCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. ATCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATCO was profitable.
ATCO had a positive operating cash flow in the past year.
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.
1.2 Ratios
ATCO has a Return On Assets of 4.97%. This is comparable to the rest of the industry: ATCO outperforms 50.00% of its industry peers.
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 of 5.65%. This is comparable to the rest of the industry: ATCO outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATCO is significantly below the industry average of 14.63%.
| Industry Rank | Sector 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
1.3 Margins
ATCO has a better Profit Margin (33.08%) than 62.50% of its industry peers.
ATCO's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 79.18%, ATCO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ATCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATCO is destroying value.
The number of shares outstanding for ATCO has been increased compared to 1 year ago.
The number of shares outstanding for ATCO has been increased compared to 5 years ago.
The debt/assets ratio for ATCO has remained at the same level compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.75, ATCO is doing worse than 75.00% of the companies in the same industry.
ATCO has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.22, ATCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.89
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.57 indicates that ATCO may have some problems paying its short term obligations.
ATCO has a worse Current ratio (0.57) than 75.00% of its industry peers.
ATCO has a Quick Ratio of 0.57. This is a bad value and indicates that ATCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.52, ATCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for ATCO have decreased strongly by -10.12% in the last year.
The Earnings Per Share has been growing by 18.00% on average over the past years. This is quite good.
ATCO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.09%.
Measured over the past years, ATCO shows a quite strong growth in Revenue. The Revenue has been growing by 15.35% on average per year.
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y18%
EPS growth Q2Q-9.52%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y15.35%
Revenue growth Q2Q1.91%
3.2 Future
Based on estimates for the next years, ATCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
Based on estimates for the next years, ATCO will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ATCO is valuated reasonably with a Price/Earnings ratio of 10.25.
100.00% of the companies in the same industry are more expensive than ATCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.84. ATCO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.61, the valuation of ATCO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATCO indicates a rather cheap valuation: ATCO is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ATCO to the average of the S&P500 Index (21.35), we can say ATCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATCO is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.02 |
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.
ATCO's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.57
EPS Next 2Y9.5%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
ATCO has a Yearly Dividend Yield of 1.26%.
ATCO's Dividend Yield is rather good when compared to the industry average which is at 4.84. ATCO pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.26, ATCO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
ATCO has been paying a dividend for less than 5 years, so it still needs to build a track record.
ATCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
32.07% of the earnings are spent on dividend by ATCO. This is a low number and sustainable payout ratio.
DP32.07%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
Atlas Corporation
NYSE:ATCO (3/27/2023, 7:27:59 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.52
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 12.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 43.23% | ||
| PM (TTM) | 33.08% | ||
| GM | 79.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y