ATCO Stock Overview
Atlas Corp. operates as an asset manager and operator of containerships.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$13.52|
|52 Week High||US$16.23|
|52 Week Low||US$10.13|
|1 Month Change||-6.24%|
|3 Month Change||23.24%|
|1 Year Change||-13.72%|
|3 Year Change||23.92%|
|5 Year Change||90.69%|
|Change since IPO||-36.53%|
Recent News & Updates
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
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
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.
|ATCO||US Infrastructure||US Market|
Return vs Industry: ATCO matched the US Infrastructure industry which returned -14.2% over the past year.
Return vs Market: ATCO exceeded the US Market which returned -23.1% over the past year.
|ATCO Average Weekly Movement||7.2%|
|Infrastructure Industry Average Movement||6.2%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: ATCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: ATCO's weekly volatility (7%) has been stable over the past year.
About the Company
Atlas Corp. operates as an asset manager and operator of containerships. The company, through its subsidiaries, operates as an independent charter owner and manager of containerships. The company charters its containerships under long-term and fixed-rate time charters to various container liner companies.
Atlas Fundamentals Summary
|ATCO fundamental statistics|
Is ATCO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ATCO income statement (TTM)|
|Cost of Revenue||US$429.30m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.94|
|Net Profit Margin||35.71%|
How did ATCO perform over the long term?See historical performance and comparison
3.7%Current Dividend Yield
Is ATCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ATCO?
Other financial metrics that can be useful for relative valuation.
|What is ATCO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ATCO's PE Ratio compare to its peers?
|ATCO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
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Price-To-Earnings vs Peers: ATCO is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (11.7x).
Price to Earnings Ratio vs Industry
How does ATCO's PE Ratio compare vs other companies in the Global Infrastructure Industry?
Price-To-Earnings vs Industry: ATCO is good value based on its Price-To-Earnings Ratio (7x) compared to the Global Infrastructure industry average (13.3x)
Price to Earnings Ratio vs Fair Ratio
What is ATCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||7x|
|Fair PE Ratio||15.8x|
Price-To-Earnings vs Fair Ratio: ATCO is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).
Share Price vs Fair Value
What is the Fair Price of ATCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ATCO ($13.52) is trading below our estimate of fair value ($56.39)
Significantly Below Fair Value: ATCO is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Atlas forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATCO's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).
Earnings vs Market: ATCO's earnings (15.7% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: ATCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATCO's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ATCO's revenue (11% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ATCO's Return on Equity is forecast to be high in 3 years time
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How has Atlas performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATCO has high quality earnings.
Growing Profit Margin: ATCO's current net profit margins (35.7%) are higher than last year (25.7%).
Past Earnings Growth Analysis
Earnings Trend: ATCO has become profitable over the past 5 years, growing earnings by 28.5% per year.
Accelerating Growth: ATCO's earnings growth over the past year (59.6%) exceeds its 5-year average (28.5% per year).
Earnings vs Industry: ATCO earnings growth over the past year (59.6%) exceeded the Infrastructure industry 8.1%.
Return on Equity
High ROE: ATCO's Return on Equity (12.9%) is considered low.
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How is Atlas's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ATCO's short term assets ($706.4M) do not cover its short term liabilities ($1.3B).
Long Term Liabilities: ATCO's short term assets ($706.4M) do not cover its long term liabilities ($5.3B).
Debt to Equity History and Analysis
Debt Level: ATCO's net debt to equity ratio (82.6%) is considered high.
Reducing Debt: ATCO's debt to equity ratio has reduced from 146.9% to 92.1% over the past 5 years.
Debt Coverage: ATCO's debt is well covered by operating cash flow (22.3%).
Interest Coverage: ATCO's interest payments on its debt are well covered by EBIT (7.1x coverage).
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What is Atlas's current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ATCO's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: ATCO's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: ATCO's dividends per share have been stable in the past 10 years.
Growing Dividend: ATCO's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (23.2%), ATCO's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: ATCO is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bing Chen (55 yo)
Mr. Bing Chen, C.P.A, has been President, Chief Executive Officer and Director of Atlas Corp. since November 2019 and has been its Chairman since February 2020. He served as an Interim Chief Financial Offi...
Experienced Management: ATCO's management team is considered experienced (2.1 years average tenure).
Experienced Board: ATCO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|07 Apr 22||BuyUS$201,250,000||Fairfax Financial Holdings Limited||Company||25,000,000||US$8.05|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.2%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Atlas Corp.'s employee growth, exchange listings and data sources
- Name: Atlas Corp.
- Ticker: ATCO
- Exchange: NYSE
- Founded: 2019
- Industry: Marine Ports and Services
- Sector: Transportation
- Implied Market Cap: US$3.793b
- Shares outstanding: 280.52m
- Website: https://www.atlascorporation.com
Number of Employees
- Atlas Corp.
- 23 Berkeley Square
- Greater London
- W1J 6HE
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ATCO||NYSE (New York Stock Exchange)||Yes||Class A Common Shares||US||USD||Aug 2005|
|A2P052||DB (Deutsche Boerse AG)||Yes||Class A Common Shares||DE||EUR||Aug 2005|
|ATCO.PRD||NYSE (New York Stock Exchange)||7.95% CUM PFD D||US||USD||Dec 2012|
|ATCO.PRH||NYSE (New York Stock Exchange)||7.875% CUM PFD H||US||USD||Aug 2016|
|ATCO.PRI||NYSE (New York Stock Exchange)||FIX FLT CM PFD I||US||USD||Sep 2018|
|ATCO.L||NasdaqGM (Nasdaq Global Market)||CALL NT 27||US||USD||May 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 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.