Atlas Corp. operates as an asset manager and operator.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.67|
|52 Week High||US$8.46|
|52 Week Low||US$16.49|
|1 Month Change||14.46%|
|3 Month Change||18.00%|
|1 Year Change||60.22%|
|3 Year Change||94.42%|
|5 Year Change||12.41%|
|Change since IPO||-26.43%|
Recent News & Updates
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.
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...
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.
|ATCO||US Shipping||US Market|
Return vs Industry: ATCO underperformed the US Shipping industry which returned 120.5% over the past year.
Return vs Market: ATCO exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: ATCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ATCO's weekly volatility (5%) has been stable over the past year.
About the Company
Atlas Corp. operates as an asset manager and operator. 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.
Is Atlas 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: ATCO ($15.67) is trading below our estimate of fair value ($43.65)
Significantly Below Fair Value: ATCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ATCO is poor value based on its PE Ratio (28.3x) compared to the US Shipping industry average (11.4x).
PE vs Market: ATCO is poor value based on its PE Ratio (28.3x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ATCO is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: ATCO's PB Ratio (1.2x) is in line with the US Shipping industry average.
How is Atlas forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATCO's forecast earnings growth (31.2% per year) is above the savings rate (2%).
Earnings vs Market: ATCO's earnings (31.2% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ATCO's revenue (10.2% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: ATCO's revenue (10.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ATCO's Return on Equity is forecast to be low in 3 years time (3.5%).
How has Atlas performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATCO has a large one-off loss of $194.1M impacting its June 30 2021 financial results.
Growing Profit Margin: ATCO's current net profit margins (10.1%) are lower than last year (14.5%).
Past Earnings Growth Analysis
Earnings Trend: ATCO's earnings have grown significantly by 35.2% per year over the past 5 years.
Accelerating Growth: ATCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ATCO had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Shipping industry average (359.5%).
Return on Equity
High ROE: ATCO's Return on Equity (5.5%) is considered low.
How is Atlas's financial position?
Financial Position Analysis
Short Term Liabilities: ATCO's short term assets ($878.7M) do not cover its short term liabilities ($919.3M).
Long Term Liabilities: ATCO's short term assets ($878.7M) do not cover its long term liabilities ($5.3B).
Debt to Equity History and Analysis
Debt Level: ATCO's debt to equity ratio (98.8%) is considered high.
Reducing Debt: ATCO's debt to equity ratio has reduced from 166.3% to 98.8% over the past 5 years.
Debt Coverage: ATCO's debt is well covered by operating cash flow (20.3%).
Interest Coverage: ATCO's interest payments on its debt are well covered by EBIT (4.2x coverage).
What is Atlas's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ATCO's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: ATCO's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.2%), ATCO's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ATCO's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bing Chen (54 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 not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: ATCO's board of directors are considered experienced (3.7 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.
Atlas Corp.'s employee growth, exchange listings and data sources
- Name: Atlas Corp.
- Ticker: ATCO
- Exchange: NYSE
- Founded: 2019
- Industry: Marine
- Sector: Transportation
- Market Cap: US$4.346b
- Shares outstanding: 277.32m
- Website: https://www.atlascorporation.com
Number of Employees
- Atlas Corp.
- 23 Berkeley Square
- Greater London
- W1J 6HE
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:15|
|End of Day Share Price||2021/09/17 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.