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Atlas Corp.NYSE:ATCO Stock Report

Market Cap US$4.3b
Share Price
n/a
US$16.88
n/aintrinsic discount
1Y-0.4%
7D0.8%
Portfolio Value
​
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Atlas Corp.

NYSE:ATCO Stock Report

Market Cap: US$4.3b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Atlas (ATCO) Stock Overview

Atlas Corp. operates as an asset manager and operator of containerships. More details

ATCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends2/6

Rewards

Trading at 92% below our estimate of its fair value

Revenue is forecast to grow 11.45% per year

Earnings grew by 67.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 15.7% per year for the next 3 years

Has a high level of debt

Shareholders have been diluted in the past year

Dividend of 3.23% is not well covered by free cash flows


ATCO Community Fair Values

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Atlas Corp. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Atlas
Historical stock prices
Current Share PriceUS$15.48
52 Week HighUS$15.63
52 Week LowUS$10.13
Beta0.94
1 Month Change0.45%
3 Month Change0.91%
1 Year Change-0.39%
3 Year Change114.70%
5 Year Change129.67%
Change since IPO-27.32%

Recent News & Updates

Seeking Alpha • Feb 14

Atlas Q4 2022 Earnings Preview

Atlas (NYSE:ATCO) is scheduled to announce Q4 earnings results on Wednesday, February 15th, after market close. The consensus EPS Estimate is $0.41 (-2.4% Y/Y) and the consensus Revenue Estimate is $433.33M (+1.2% Y/Y). Over the last 2 years, ATCO has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 0 downward. Revenue estimates have seen 0 upward revision and 0 downward.

Recent updates

Seeking Alpha • Feb 14

Atlas Q4 2022 Earnings Preview

Atlas (NYSE:ATCO) is scheduled to announce Q4 earnings results on Wednesday, February 15th, after market close. The consensus EPS Estimate is $0.41 (-2.4% Y/Y) and the consensus Revenue Estimate is $433.33M (+1.2% Y/Y). Over the last 2 years, ATCO has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 0 downward. Revenue estimates have seen 0 upward revision and 0 downward.
Seeking Alpha • Jan 05

Atlas declares $0.125 dividend

Atlas (NYSE:ATCO) declares $0.125/share quarterly dividend, in line with previous. Forward yield 3.26% Payable Jan. 30; for shareholders of record Jan. 20; ex-div Jan. 19. See ATCO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Oct 06

Atlas declares $0.125 dividend

Atlas (NYSE:ATCO) declares $0.125/share quarterly dividend, in line with previous. Forward yield 3.56% Payable Oct. 31; for shareholders of record Oct. 20; ex-div Oct. 19. See ATCO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Sep 15

Seaspan announces update regarding order for four 7,700 TEU dual-fuel LNG containership newbuilds

Atlas Corp (NYSE:ATCO) has  announced on May 17, 2022 a contracts for four 7,700 TEU dual-fuel liquefied natural gas containership newbuildings. Seaspan Corporation a wholly-owned subsidiary of Atlas Corp. Source: Press Release
Seeking Alpha • Sep 06

Albright Capital to vote 'no' on $14.45/share takeover bid

Albright Capital Management, a large minority shareholder in Atlas Corp. (NYSE:ATCO) said Tuesday it will note "no" on the $14.45 per share unsolicited offer from a group of ATCO insiders and ONE, the company's largest shipping counterparty. Albright, which believes it is the second-largest minority public shareholder of Atlas (ATCO) also urged other shareholders to reject the proposal. "ATCO is at an important and very positive inflection point – a crossroads that the analysts seem to ignore, but which we believe the Consortium fully understands and wishes to capitalize upon with their unsolicited offer," the shareholder said in its statement. Albright Capital expects ATCO shares would likely trade between $23 and $29 per share in 2024, without any significant multiple expansion. Sixty-eight fully financed and fully contracted new ships will come on line in 2024, just beyond the forecasting timeline for most ATCO analysts, the shareholder said. Albright expects ATCO revenue will increase to ~$2.4B in 2024 from $1.7B in 2022 and that income from operations will increase to $1.2B from ~$750M. Previously (Aug. 19), Atlas (ATCO) ticks higher after disclosing board formed special committee on takeover bid
Seeking Alpha • Aug 17

The Atlas Corp. Special Situation

The majority shareholder group has made a non-binding offer to acquire the remaining outstanding shares of Atlas Corp. for $14.45/share. On 9/15, an activist investor published a letter that makes a compelling case that this offer severely undervalues the company. The current opportunity is best for those who like the special situation trade, yet would otherwise be interested in owning Atlas Corp. shares as a long-term investment. I received a number of reader comments/questions on the Atlas Corp. (ATCO) special situation, with most of them relating it to the MLP buyouts (Sprague Resources LP (SRLP), Blueknight Energy Partners (BKEP), Sisecam Resources LP (SIRE)) that I have commented on or written about. You can find my writeup on Sisecam Resources LP here. My two letters to Blueknight Energy LP's conflicts committee can be found here and here, and my Sprague Resources LP comment can be found here. Atlas Corp: Atlas Corp. (NYSE: ATCO) is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience. We target long-term, risk adjusted returns across high quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. Our two main portfolio companies, Seaspan Corporation and APR Energy Limited are unique, industry-leading operating platforms in the global maritime and energy spaces, respectively. Source: Atlas Corp Situation: A majority shareholder group has made a non-binding offer to acquire the remaining outstanding shares of Atlas Corp for $14.45/share. The full statement can be found here. Yesterday, Atlas Corp shareholder Charles Frischer made a compelling case that the initial offer severely undervalues the company via a letter to the special committee evaluating the transaction which was made public yesterday. Given the above, it seems probable that at a minimum we will see some type of bump to the initial proposal. My take Playing this for a moderate bump looks like a reasonable trade - particularly when the share price is under the initial proposal level of $14.45. There are two big advantages over the recent MLP buyout proposals: Any deal will require the majority of minority shareholders to vote in its favor - this is a substantial shareholder protection. The timeline is expedited. The proposal states that that the consortium has a, "goal of entering into a binding definitive agreement within two to three weeks" of the conflict committee's engagement. This rapid timeline creates the potential for a very high IRR (Internal Rate of Return). However, I see increased risk of a "no deal" situation relative to the recent MLP take-privates. With the Atlas Corp proposal, the buyer group is 100% financially minded, highly sophisticated and acting opportunistically, whereas the MLP take-privates were/are strategic acquirers eliminating a nuisance security. I have zero doubt that this buyer group will cancel the proposal if they are unable to secure a bargain valuation.
Seeking Alpha • Aug 05

Atlas Management Proposes To Muscle Out Minority Shareholders

Atlas' largest shareholders, Chairman, and ONE propose to take the company private at $14.45/share, representing a $3.8B fully diluted market cap and a $9.7B Enterprise Valuation. The Company has $18B of contracted cash flows and anticipates generating $450M in cash flow to the common equity in 2022. The buyout group already owns over 70% of the outstanding shares. The buyout offer could easily be replaced with a voluntary tender without forcing out minority shareholders who wish to continue owning the business. In 2017, David Sokol, the former CEO of Berkshire Hathaway Energy (when it was called MidAmerican Energy), became the chairman of Seaspan the container ship lessor. In the past five years, Sokol and his investment partners the Washington Family and Fairfax Financial Holdings (FRFHF) have begun to build what he recently defined as a no-fee public platform for long-term infrastructure investments. The holding company is now named Atlas Corporation (ATCO) and the ship leasing business continues as Seaspan. They acquired Greater China Intermodal Investments in 2018 and APR Energy in 2020. Yesterday, Sokol, the Washington family, Fairfax, and Ocean Network Express ((ONE)) submitted a non-binding offer to take Atlas private at $14.45/share. This price is a 25% premium to Thursday's closing price, but 10% below the $16/share threshold Atlas traded at as recently as February. The board will form a committee of independent directors to evaluate the proposal. As a shareholder of Atlas Corporation, I heard the news with significant dismay. Atlas is a high-quality company that has pursued a strategy of forming long-term relationships with its shipping line partners. They have the largest fleet of any shipping lessor, their fleet is younger than most lessors, and they offer their customers lease prices well below spot market rates in order to secure long-duration leases. In the last two years, Atlas has secured long-term lease commitments on 70 new-build ships with a capacity of 847K TEU for a cost of $7.6B, arranged favorable financing at nearly 90% of the cost of the ships, and begun to accept delivery. To place this in context, Danaos Corporation (DAC) owns 71 containerships with 437K TEU of capacity. So, we can simplify our understanding of the outlook for Atlas by understanding they will add a company the size of Danaos for about $800M of equity and $6.8B of debt. Atlas' newbuilds also come with $11.4B of contracted revenue. (See slide 14 of Atlas' May 2022 Investor Presentation). Before taking into account the newbuild program, Atlas Corporation has $6.7B of contracted cash flows and $5.9B of net debt. After adding in the newbuilds, Atlas has $18.1B of contracted cash flows and an estimated $12.5B of debt. The fleet is nearly 2M TEUs, it is 4.9 years old and has a remaining lease duration of 7.3 years (see slide 9 of the Investor Presentation). From the above, we can see that for a purchase price that assigns a $3.8B fully diluted market capitalization, the buyers are taking a minimal financial risk. The payback has already been contracted, and the remaining useful lives of the fleet plus APR Energy's earnings are pure gravy. Given the existing owners already control the company, little is gained by the buyout. If successful, owners of 70% of the business can force reluctant shareholders to sell for a price far below what they are likely to realize if they continue to own the business. Furthermore, given that shares are trading below $12/share, the majority owners could further intensify their ownership by purchasing shares in the open market or via a non-compulsory tender offer.
Analysis Article • Jul 13

Atlas (NYSE:ATCO) Is Due To Pay A Dividend Of $0.125

The board of Atlas Corp. ( NYSE:ATCO ) has announced that it will pay a dividend on the 1st of August, with investors...
Seeking Alpha • Jul 07

Atlas declares $0.125 dividend

Atlas (NYSE:ATCO) declares $0.125/share quarterly dividend, in line with previous. Forward yield 4.88% Payable Aug. 1; for shareholders of record July 20; ex-div July 19. See ATCO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jun 24

Atlas: More Vessels, Great 2022 Guidance, And Beneficial Estimates

Atlas Corp. invests in long-term, risk-adjusted returns across infrastructure assets in the maritime sector and the energy sector. I assumed that the shipping and energy market trends will continue to be beneficial for Atlas Corp. Atlas Corp. reported Q1 2022 sales growth of more than 9%, and many investment analysts are expecting double-digit sales growth in 2023 and 2024.
Analysis Article • Jun 08

Does Atlas (NYSE:ATCO) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Seeking Alpha • May 10

Atlas Corp. Shares At Key Support Ahead Of Q1 Earnings

ATCO has given back a chunk of its post-COVID rally, and shares now hang at key support. An important earnings report is confirmed for Wednesday evening. The company's management is scheduled to present at an investor conference in June. The current valuation is attractive, but near-term momentum is weak.
Analysis Article • May 02

What Does Atlas Corp.'s (NYSE:ATCO) Share Price Indicate?

While Atlas Corp. ( NYSE:ATCO ) might not be the most widely known stock at the moment, it saw significant share price...
Analysis Article • Mar 02

Is Atlas (NYSE:ATCO) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Seeking Alpha • Feb 24

Atlas Corp.: An Amalgam Of Global Solutions

Atlas deals with global shipping and mobile power solutions in a market slowly recovering from past problems. The company registered significant growth throughout 2021, even though it fell short of some enthusiastic estimates in some quarters. We will look at the improvements being made to global shipping, how Atlas is expanding its horizons to new frontiers, and what can be expected in the current year.
Analysis Article • Jan 26

Why Atlas Corp. (NYSE:ATCO) Could Be Worth Watching

Atlas Corp. ( NYSE:ATCO ), might not be a large cap stock, but it received a lot of attention from a substantial price...
Analysis Article • Jan 09

Atlas (NYSE:ATCO) Is Due To Pay A Dividend Of US$0.13

Atlas Corp. ( NYSE:ATCO ) will pay a dividend of US$0.13 on the 31st of January. The dividend yield is 3.5% based on...
Seeking Alpha • Dec 09

Atlas Corp. Is Currently A Buy - Based On Intrinsic Value

Atlas Corp. is a Canadian shipping, logistics, and building company that owns 118 cargo containerships. The intrinsic value of this stock is approximately $59.39 and the stock is currently trading at $13.98. I rate this stock a buy for investors looking for a good long-term investment that will produce free cash flow.
Analysis Article • Dec 01

Atlas (NYSE:ATCO) Has A Somewhat Strained Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article • Oct 10

Atlas (NYSE:ATCO) Has Re-Affirmed Its Dividend Of US$0.13

Atlas Corp. ( NYSE:ATCO ) will pay a dividend of US$0.13 on the 1st of November. Including this payment, the dividend...
Analysis Article • Oct 04

What Is Atlas Corp.'s (NYSE:ATCO) Share Price Doing?

Atlas Corp. ( NYSE:ATCO ), might not be a large cap stock, but it led the NYSE gainers with a relatively large price...
Seeking Alpha • Sep 17

Atlas Is Sailing On A Solid Future Cash Flow

Atlas increased its total revenue and adjusted EBITDA at a compound annual growth rate of 22.2 percent and 26.3 percent, respectively. Enhanced its customer diversification as a result of its long-term charter with ZIM Integrated Shipping. Its core operations have improved due to the increased utilization of its vessels and power fleet. The management's bullish market outlook will propel ATCO to multiple highs.
Analysis Article • Aug 27

We Think Atlas (NYSE:ATCO) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Seeking Alpha • Aug 12

Atlas Corporation: Unrivalled Cash Flow Visibility

Atlas Corporation is firing on all cylinders and is arguably in the strongest position it has ever been. Yet the share price is still ~40% below September 2013 levels. The revenue backlog has increased by more than threefold since 2017 to $16.2bn, with an average remaining charter term of 7.2 years. This means guaranteed profits for years to come. Despite the containership market hovering around all-time highs, investors fear a downturn due to an increasing orderbook, and this is keeping a lid on the share price. However, even if the market eventually declines, this is not so relevant for Atlas anymore, since the company has already capitalized on the strong containership market in the best possible way. All newbuildings come with long-term contracts attached and more than 50% of the operating fleet has already been forward fixed on long term contracts. As such, the downside is very limited.
Analysis Article • Jul 10

Atlas (NYSE:ATCO) Has Announced A Dividend Of US$0.13

Atlas Corp. ( NYSE:ATCO ) will pay a dividend of US$0.13 on the 30th of July. This payment means that the dividend...
Seeking Alpha • Jun 30

Atlas: Much Higher Earnings Already Aboard

Atlas has traded sideways since late February despite the underlying ship leasing rates doubling over the same period and remains below its pre-covid highs. ATCO has a quarter of its fleet that will be rolling onto new long-term charters at 2x-3x prior rates. The company is by far the largest US-listed ship lessor by just about any measure and continues to widen its moat with 50%+ growth contracted in the coming years. Recent disclosures and news flow suggest analyst estimates are very low and will need to re-rate much higher providing the catalyst for a much higher share price.
Analysis Article • Jun 25

Should You Investigate Atlas Corp. (NYSE:ATCO) At US$14.39?

While Atlas Corp. ( NYSE:ATCO ) might not be the most widely known stock at the moment, it maintained its current share...
Analysis Article • May 16

Does Atlas (NYSE:ATCO) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Apr 28

Does It Make Sense To Buy Atlas Corp. (NYSE:ATCO) For Its Yield?

Is Atlas Corp. ( NYSE:ATCO ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings...
Analysis Article • Mar 27

Is There Now An Opportunity In Atlas Corp. (NYSE:ATCO)?

Atlas Corp. ( NYSE:ATCO ), might not be a large cap stock, but it received a lot of attention from a substantial price...
Analysis Article • Mar 12

Is Atlas Corp. (NYSE:ATCO) Popular Amongst Insiders?

A look at the shareholders of Atlas Corp. ( NYSE:ATCO ) can tell us which group is most powerful. Insiders often own a...
Analysis Article • Feb 25

Atlas Corp.'s (NYSE:ATCO) Stock Is Going Strong: Have Financials A Role To Play?

Atlas (NYSE:ATCO) has had a great run on the share market with its stock up by a significant 25% over the last month...
Analysis Article • Feb 10

Is Atlas (NYSE:ATCO) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Analysis Article • Jan 26

Read This Before Buying Atlas Corp. (NYSE:ATCO) For Its Dividend

Is Atlas Corp. ( NYSE:ATCO ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings...
Analysis Article • Jan 11

Did You Participate In Any Of Atlas' (NYSE:ATCO) Respectable 79% Return?

By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger...
Analysis Article • Dec 27

Is There Now An Opportunity In Atlas Corp. (NYSE:ATCO)?

Atlas Corp. ( NYSE:ATCO ), is not the largest company out there, but it received a lot of attention from a substantial...
Analysis Article • Dec 12

Are Atlas's (NYSE:ATCO) Statutory Earnings A Good Guide To Its Underlying Profitability?

Statistically speaking, it is less risky to invest in profitable companies than in unprofitable ones. However...
Analysis Article • Nov 27

What Kind Of Investors Own Most Of Atlas Corp. (NYSE:ATCO)?

The big shareholder groups in Atlas Corp. (NYSE:ATCO) have power over the company. Insiders often own a large chunk of...

Shareholder Returns

ATCOUS InfrastructureUS Market
7D0.8%-3.7%1.1%
1Y-0.4%7.4%26.7%

Return vs Industry: ATCO underperformed the US Infrastructure industry which returned 74.8% over the past year.

Return vs Market: ATCO underperformed the US Market which returned 38.6% over the past year.

Price Volatility

Is ATCO's price volatile compared to industry and market?
ATCO volatility
ATCO Average Weekly Movement0.9%
Infrastructure Industry Average Movement4.5%
Market Average Movement7.2%
10% most volatile stocks in US Market16.2%
10% least volatile stocks in US Market3.1%

Stable Share Price: ATCO has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ATCO's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20196,200Bing Chenwww.atlascorporation.com

Atlas Corp. operates as an asset manager and operator of containerships. It operates through two segments, Containership Leasing and Mobile Power Generation. The company, through its subsidiaries, operates as an independent charter owner and manager of containerships.

Atlas Corp. Fundamentals Summary

How do Atlas's earnings and revenue compare to its market cap?
ATCO fundamental statistics
Market capUS$4.29b
Earnings (TTM)US$561.50m
Revenue (TTM)US$1.70b
7.6x
P/E Ratio
2.5x
P/S Ratio

Is ATCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ATCO income statement (TTM)
RevenueUS$1.70b
Cost of RevenueUS$476.40m
Gross ProfitUS$1.22b
Other ExpensesUS$659.50m
EarningsUS$561.50m

Last Reported Earnings

Dec 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.03
Gross Margin71.93%
Net Profit Margin33.08%
Debt/Equity Ratio83.4%

How did ATCO perform over the long term?

See historical performance and comparison

Dividends

3.2%
Current Dividend Yield
24%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/03/29 05:41
End of Day Share Price 2023/03/27 00:00
Earnings2022/12/31
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Atlas Corp. is covered by 17 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Garrett ChaseBarclays
Fadi ChamounBMO Capital Markets Equity Research
Kenneth HoexterBofA Global Research