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. More Details
Undervalued established dividend payer.
Share Price & News
How has ATCO's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACO.X has not had significant price volatility in the past 3 months.
7 Day Return
CA Integrated Utilities
1 Year Return
CA Integrated Utilities
Return vs Industry: ACO.X underperformed the Canadian Integrated Utilities industry which returned -10.6% over the past year.
Return vs Market: ACO.X underperformed the Canadian Market which returned -5.6% over the past year.
Price Volatility Vs. Market
How volatile is ATCO's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StThe Trends At ATCO (TSE:ACO.X) That You Should Know About
2 weeks ago | Simply Wall StChair & CEO Nancy Southern Just Bought 9.6% More Shares In ATCO Ltd. (TSE:ACO.X)
3 weeks ago | Simply Wall StReflecting on ATCO's (TSE:ACO.X) Share Price Returns Over The Last Year
Is ATCO undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACO.X (CA$38.49) is trading below our estimate of fair value (CA$46.21)
Significantly Below Fair Value: ACO.X is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ACO.X is good value based on its PE Ratio (11.7x) compared to the XN Integrated Utilities industry average (17.4x).
PE vs Market: ACO.X is good value based on its PE Ratio (11.7x) compared to the Canadian market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: ACO.X is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: ACO.X is good value based on its PB Ratio (1.1x) compared to the XN Integrated Utilities industry average (1.7x).
How is ATCO forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACO.X's forecast earnings growth (16.5% per year) is above the savings rate (1.7%).
Earnings vs Market: ACO.X's earnings (16.5% per year) are forecast to grow slower than the Canadian market (22.7% per year).
High Growth Earnings: ACO.X's earnings are forecast to grow, but not significantly.
Revenue vs Market: ACO.X's revenue (0.5% per year) is forecast to grow slower than the Canadian market (5.3% per year).
High Growth Revenue: ACO.X's revenue (0.5% 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 (11.6%).
How has ATCO performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACO.X has a large one-off gain of CA$174.0M impacting its June 30 2020 financial results.
Growing Profit Margin: ACO.X's current net profit margins (8.8%) are lower than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: ACO.X's earnings have grown by 16.3% 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 (-28%) over the past year, making it difficult to compare to the Integrated Utilities industry average (2.9%).
Return on Equity
High ROE: ACO.X's Return on Equity (9.3%) is considered low.
How is ATCO's financial position?
Financial Position Analysis
Short Term Liabilities: ACO.X's short term assets (CA$1.9B) exceed its short term liabilities (CA$822.0M).
Long Term Liabilities: ACO.X's short term assets (CA$1.9B) do not cover its long term liabilities (CA$13.1B).
Debt to Equity History and Analysis
Debt Level: ACO.X's debt to equity ratio (120.5%) is considered high.
Reducing Debt: ACO.X's debt to equity ratio has reduced from 122.2% to 120.5% over the past 5 years.
Debt Coverage: ACO.X's debt is not well covered by operating cash flow (20%).
Interest Coverage: ACO.X's interest payments on its debt are not well covered by EBIT (2.9x coverage).
What is ATCO current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ACO.X's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Canadian market (1.72%).
High Dividend: ACO.X's dividend (4.52%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).
Stability and Growth of Payments
Stable Dividend: ACO.X's dividends per share have been stable in the past 10 years.
Growing Dividend: ACO.X's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.2%), ACO.X's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ACO.X's dividends in 3 years are forecast to be covered by earnings (61.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nancy Southern (63 yo)
Ms. Nancy C. Southern has been Executive Chairman at CU Inc. She serves as Chief Executive Officer of ATCO Ltd. since January 2000. Ms. Southern served as the Chief Executive Officer at Canadian Utilities ...
CEO Compensation Analysis
Compensation vs Market: Nancy's total compensation ($USD1.56M) is below average for companies of similar size in the Canadian market ($USD3.03M).
Compensation vs Earnings: Nancy's compensation has been consistent with company performance over the past year.
|Chair & CEO||20.67yrs||CA$2.08m||0.54% |
|Executive VP & CFO||3.25yrs||CA$2.16m||0.038% |
|Member of Office of the Chair||no data||CA$2.14m||0.072% |
|Executive Vice President of Puerto Rico||0.67yr||CA$1.40m||0.029% |
|President of Structures - ATCO Structures & Logistics Ltd.||no data||CA$1.34m||0.0091% |
|Director of Investor Relations||no data||no data||no data|
|Director of Corporate Communications||no data||no data||no data|
|Executive Vice President of Corporate Development||0.67yr||no data||no data|
|Senior VP of IT & Real Estate and Special Advisor to the CEO||no data||CA$573.52k||no data|
|Managing Director of Australian Operations & Chief Operating Officer of Australian Operations||3.25yrs||no data||0.0069% |
|Executive VP & GM of Utilities||no data||CA$1.55m||0.031% |
|President of Frontec||no data||no data||no data|
Experienced Management: ACO.X's management team is considered experienced (3.3 years average tenure).
|Chair & CEO||20.67yrs||CA$2.08m||0.54% |
|Independent Director||6.33yrs||CA$419.94k||0.0069% |
|Independent Lead Director||17.42yrs||CA$658.93k||0.053% |
|Independent Director||8.33yrs||CA$306.18k||0.013% |
|Independent Director||11.33yrs||CA$245.00k||0.022% |
|Independent Director||6.33yrs||CA$231.00k||0.0084% |
|Independent Director||6.17yrs||CA$245.00k||0.016% |
|Vice Chairman of the Board||3.83yrs||CA$449.50k||0.23% |
Experienced Board: ACO.X's board of directors are considered experienced (7.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ATCO Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: ATCO Ltd.
- Ticker: ACO.X
- Exchange: TSX
- Founded: 1947
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: CA$4.464b
- Shares outstanding: 114.35m
- Website: https://www.atco.com
Number of Employees
- ATCO Ltd.
- West Building
- 4th Floor
- T3E 8B4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ACO.X||TSX (The Toronto Stock Exchange)||Yes||Class I Non-Voting Shares||CA||CAD||Jan 1981|
|8A6||DB (Deutsche Boerse AG)||Yes||Class I Non-Voting Shares||DE||EUR||Jan 1981|
|ACLL.F||OTCPK (Pink Sheets LLC)||Yes||Class I Non-Voting Shares||US||USD||Jan 1981|
|ACO.Y||TSX (The Toronto Stock Exchange)||Class II Voting Shares||CA||CAD||Jan 1981|
|ACLT.F||OTCPK (Pink Sheets LLC)||Class II Voting Shares||US||USD||Jan 1981|
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 internat ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/01 00:21|
|End of Day Share Price||2020/09/30 00:00|
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.