Atlas Corporation (ATCO) Stock Fundamental Analysis
NYSE:ATCO - New York Stock Exchange, Inc. - MHY0436Q1098 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ATCO. ATCO was compared to 7 industry peers in the Transportation Infrastructure industry. While ATCO is still in line with the averages on profitability rating, there are concerns on its financial health. ATCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ATCO had positive earnings in the past year.
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.
1.2 Ratios
ATCO's Return On Assets of 4.97% is in line compared 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.
The Return On Invested Capital of ATCO (5.65%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATCO is significantly below the industry average of 14.57%.
| 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 Profit Margin of 33.08%. This is in the better half of the industry: ATCO outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of ATCO has grown nicely.
With a decent Operating Margin value of 43.23%, ATCO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ATCO's Operating Margin has improved in the last couple of years.
ATCO has a better Gross Margin (79.18%) than 87.50% of its industry peers.
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
ATCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ATCO has been increased compared to 1 year ago.
The debt/assets ratio for ATCO has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that ATCO is in the distress zone and 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.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ATCO has dependencies on debt financing.
The Debt to Equity ratio of ATCO (1.22) is better than 62.50% of its industry peers.
| 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.
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.
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
ATCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
ATCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.00% yearly.
Looking at the last year, ATCO shows a small growth in Revenue. The Revenue has grown by 3.09% in the last year.
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 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.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.25 indicates a reasonable valuation of ATCO.
Based on the Price/Earnings ratio, ATCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. ATCO is valued rather cheaply when compared to this.
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.
ATCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than ATCO, based on the Enterprise Value to EBITDA ratio.
| 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.
ATCO has a very decent profitability rating, which 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, ATCO has a reasonable but not impressive dividend return.
ATCO's Dividend Yield is rather good when compared to the industry average which is at 3.98. 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 2.42.
| 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%
15.48
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%