ATCO Stock Overview
Atlas Corp. operates as an asset manager and operator of containerships.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$14.22|
|52 Week High||US$16.49|
|52 Week Low||US$10.13|
|1 Month Change||35.69%|
|3 Month Change||12.68%|
|1 Year Change||5.57%|
|3 Year Change||40.79%|
|5 Year Change||120.12%|
|Change since IPO||-33.24%|
Recent News & Updates
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.
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...
|ATCO||US Infrastructure||US Market|
Return vs Industry: ATCO exceeded the US Infrastructure industry which returned -3.8% over the past year.
Return vs Market: ATCO exceeded the US Market which returned -12.9% over the past year.
|ATCO Average Weekly Movement||8.5%|
|Infrastructure Industry Average Movement||10.1%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: ATCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: ATCO's weekly volatility (9%) 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$435.80m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 09, 2022
|Earnings per share (EPS)||1.69|
|Net Profit Margin||31.07%|
How did ATCO perform over the long term?See historical performance and comparison
3.5%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|
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Price-To-Earnings vs Peers: ATCO is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (10.2x).
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 (8.4x) compared to the North American Infrastructure industry average (10.5x)
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||8.4x|
|Fair PE Ratio||12.1x|
Price-To-Earnings vs Fair Ratio: ATCO is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).
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 ($14.22) is trading below our estimate of fair value ($58.21)
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 less than 20% higher than the current share price.
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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 Score2/6
Future Growth Score 2/6
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 (4.6% per year) is above the savings rate (1.9%).
Earnings vs Market: ATCO's earnings (4.6% per year) are forecast to grow slower than the US market (12.9% per year).
High Growth Earnings: ATCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATCO's revenue (10.8% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: ATCO's revenue (10.8% 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 Score4/6
Past Performance Score 4/6
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 (31.1%) are higher than last year (27.7%).
Past Earnings Growth Analysis
Earnings Trend: ATCO has become profitable over the past 5 years, growing earnings by 32.9% per year.
Accelerating Growth: ATCO's earnings growth over the past year (30.3%) is below its 5-year average (32.9% per year).
Earnings vs Industry: ATCO earnings growth over the past year (30.3%) exceeded the Infrastructure industry 18.9%.
Return on Equity
High ROE: ATCO's Return on Equity (11.8%) 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 ($572.3M) do not cover its short term liabilities ($1.3B).
Long Term Liabilities: ATCO's short term assets ($572.3M) do not cover its long term liabilities ($5.4B).
Debt to Equity History and Analysis
Debt Level: ATCO's net debt to equity ratio (101.8%) is considered high.
Reducing Debt: ATCO's debt to equity ratio has reduced from 158.5% to 108.2% over the past 5 years.
Debt Coverage: ATCO's debt is well covered by operating cash flow (20%).
Interest Coverage: ATCO's interest payments on its debt are well covered by EBIT (5.4x 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 (3.52%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: ATCO's dividend (3.52%) is low compared to the top 25% of dividend payers in the US market (4.09%).
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 reasonably low payout ratio (26.3%), 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 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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.
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$3.938b
- Shares outstanding: 276.90m
- 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||2022/08/07 00:00|
|End of Day Share Price||2022/08/05 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.