Should You Be Holding ATCO Ltd. (TSE:ACO.X)?

I’ve been keeping an eye on ATCO Ltd. (TSE:ACO.X) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ACO.X has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on ATCO here.

Established dividend payer and good value

ACO.X’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ACO.X’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the integrated utilities industry, ACO.X is also trading below its peers, relative to earnings generated. This supports the theory that ACO.X is potentially underpriced.

TSX:ACO.X Intrinsic value, April 10th 2019
TSX:ACO.X Intrinsic value, April 10th 2019

Income investors would also be happy to know that ACO.X is a great dividend company, with a current yield standing at 3.5%. ACO.X has also been regularly increasing its dividend payments to shareholders over the past decade.

TSX:ACO.X Historical Dividend Yield, April 10th 2019
TSX:ACO.X Historical Dividend Yield, April 10th 2019

Next Steps:

For ATCO, I’ve compiled three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ACO.X’s future growth? Take a look at our free research report of analyst consensus for ACO.X’s outlook.
  2. Historical Performance: What has ACO.X’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACO.X? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.