ATCO

AtlasNYSE:ATCO Stock Report

Market Cap

US$4.3b

7D

-0.7%

1Y

60.2%

Updated

18 Sep, 2021

Data

Company Financials +
ATCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends4/6

ATCO Overview

Atlas Corp. operates as an asset manager and operator.

Atlas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Atlas
Historical stock prices
Current Share PriceUS$15.67
52 Week HighUS$8.46
52 Week LowUS$16.49
Beta1.11
1 Month Change14.46%
3 Month Change18.00%
1 Year Change60.22%
3 Year Change94.42%
5 Year Change12.41%
Change since IPO-26.43%

Recent News & Updates

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.

Aug 27
We Think Atlas (NYSE:ATCO) Is Taking Some Risk With Its Debt

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...

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.

Shareholder Returns

ATCOUS ShippingUS Market
7D-0.7%-0.3%-0.6%
1Y60.2%120.5%33.8%

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.

Price Volatility

Is ATCO's price volatile compared to industry and market?
ATCO volatility
ATCO Beta1.11
Industry Beta1.36
Market Beta1

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

FoundedEmployeesCEOWebsite
20195,300Bing Chenhttps://www.atlascorporation.com

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.

Valuation

Is Atlas undervalued compared to its fair value and its price relative to the market?

>50%

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.


Future Growth

How is Atlas forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.2%

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%).


Past Performance

How has Atlas performed over the past 5 years?

35.2%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Atlas's current dividend yield, its reliability and sustainability?

3.19%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Bing Chen (54 yo)

3.67yrs

Tenure

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...


Leadership Team

Experienced Management: ATCO's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATCO's board of directors are considered experienced (3.7 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.


Top Shareholders

Company Information

Atlas Corp.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Atlas Corp.
  • 23 Berkeley Square
  • London
  • Greater London
  • W1J 6HE
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:15
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.