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ACO.

ATCOTSX:ACO.X Stock Report

Market Cap

CA$4.7b

7D

0.8%

1Y

6.3%

Updated

25 Sep, 2021

Data

Company Financials +
ACO.X fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends4/6

ACO.X Overview

ATCO Ltd., together with its subsidiaries, provides housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally.

ATCO Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ATCO
Historical stock prices
Current Share PriceCA$41.04
52 Week HighCA$35.68
52 Week LowCA$46.19
Beta0.79
1 Month Change-3.09%
3 Month Change-8.72%
1 Year Change6.27%
3 Year Change8.72%
5 Year Change-11.97%
Change since IPO1,445.04%

Recent News & Updates

Shareholder Returns

ACO.XCA Integrated UtilitiesCA Market
7D0.8%-0.5%-0.3%
1Y6.3%4.8%30.8%

Return vs Industry: ACO.X matched the Canadian Integrated Utilities industry which returned 6.3% over the past year.

Return vs Market: ACO.X underperformed the Canadian Market which returned 31.4% over the past year.

Price Volatility

Is ACO.X's price volatile compared to industry and market?
ACO.X volatility
ACO.X Beta0.79
Industry Beta0.55
Market Beta1

Stable Share Price: ACO.X is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ACO.X's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19476,177Nancy Southernhttps://www.atco.com

ATCO Ltd., together with its subsidiaries, provides housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally. The company offers workforce and residential housing; modular facilities; construction and site support; workforce lodging; facility operations and maintenance; defense operations; and disaster and emergency management services. It also provides commercial real estate services, including sale of commercial and industrial properties; and bulk cargo and port operation services, as well as operates container port facilities.

ATCO Fundamentals Summary

How do ATCO's earnings and revenue compare to its market cap?
ACO.X fundamental statistics
Market CapCA$4.68b
Earnings (TTM)CA$215.00m
Revenue (TTM)CA$3.99b

21.8x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACO.X income statement (TTM)
RevenueCA$3.99b
Cost of RevenueCA$1.36b
Gross ProfitCA$2.63b
ExpensesCA$2.42b
EarningsCA$215.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.88
Gross Margin65.93%
Net Profit Margin5.39%
Debt/Equity Ratio122.9%

How did ACO.X perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

94%

Payout Ratio

Valuation

Is ATCO undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACO.X (CA$41.04) is trading below our estimate of fair value (CA$72.98)

Significantly Below Fair Value: ACO.X is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACO.X is poor value based on its PE Ratio (21.8x) compared to the North American Integrated Utilities industry average (20.4x).

PE vs Market: ACO.X is poor value based on its PE Ratio (21.8x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: ACO.X is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ACO.X is good value based on its PB Ratio (1.2x) compared to the XN Integrated Utilities industry average (1.9x).


Future Growth

How is ATCO forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACO.X's forecast earnings growth (25.4% per year) is above the savings rate (1.5%).

Earnings vs Market: ACO.X's earnings (25.4% per year) are forecast to grow faster than the Canadian market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACO.X's revenue (6% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: ACO.X's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACO.X's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has ATCO performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACO.X has high quality earnings.

Growing Profit Margin: ACO.X's current net profit margins (5.4%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: ACO.X's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: ACO.X's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACO.X had negative earnings growth (-42.7%) over the past year, making it difficult to compare to the Integrated Utilities industry average (10.6%).


Return on Equity

High ROE: ACO.X's Return on Equity (5.4%) is considered low.


Financial Health

How is ATCO's financial position?


Financial Position Analysis

Short Term Liabilities: ACO.X's short term assets (CA$1.5B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: ACO.X's short term assets (CA$1.5B) do not cover its long term liabilities (CA$13.1B).


Debt to Equity History and Analysis

Debt Level: ACO.X's debt to equity ratio (122.9%) is considered high.

Reducing Debt: ACO.X's debt to equity ratio has increased from 121.1% to 122.9% over the past 5 years.

Debt Coverage: ACO.X's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: ACO.X's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is ATCO current dividend yield, its reliability and sustainability?

4.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACO.X's dividend (4.37%) is higher than the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: ACO.X's dividend (4.37%) is low compared to the top 25% of dividend payers in the Canadian market (4.58%).


Stability and Growth of Payments

Stable Dividend: ACO.X's dividends per share have been stable in the past 10 years.

Growing Dividend: ACO.X's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94%), ACO.X's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACO.X's dividends in 3 years are forecast to be covered by earnings (58.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Nancy Southern (64 yo)

21.67yrs

Tenure

CA$6,084,553

Compensation

Ms. Nancy C. Southern has been Executive Chairman at CU Inc. She serves as Chief Executive Officer of ATCO Ltd. since January 2000. Ms. Southern served as the Chief Executive Officer at Canadian Utilities...


CEO Compensation Analysis

Compensation vs Market: Nancy's total compensation ($USD4.79M) is above average for companies of similar size in the Canadian market ($USD2.96M).

Compensation vs Earnings: Nancy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ACO.X's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ACO.X's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACO.X insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ATCO Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: ATCO Ltd.
  • Ticker: ACO.X
  • Exchange: TSX
  • Founded: 1947
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: CA$4.676b
  • Shares outstanding: 114.09m
  • Website: https://www.atco.com

Number of Employees


Location

  • ATCO Ltd.
  • West Building
  • 4th Floor
  • Calgary
  • Alberta
  • T3E 8B4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 02:16
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.