OTCPK:ACLL.F

Stock Analysis Report

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Executive Summary

ATCO Ltd., together with its subsidiaries, provides housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally. More Details


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has ATCO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACLL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.03%

ACLL.F

0.7%

US Integrated Utilities

-1.3%

US Market


1 Year Return

-18.3%

ACLL.F

-5.9%

US Integrated Utilities

18.5%

US Market

Return vs Industry: ACLL.F underperformed the US Integrated Utilities industry which returned -5.9% over the past year.

Return vs Market: ACLL.F underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

ACLL.FIndustryMarket
7 Day0.03%0.7%-1.3%
30 Day-0.6%7.1%5.3%
90 Day-3.0%4.1%7.5%
1 Year-15.2%-18.3%-2.5%-5.9%21.3%18.5%
3 Year-10.5%-19.7%21.6%9.0%42.4%32.9%
5 Year20.2%1.9%63.8%36.7%84.2%63.5%

Price Volatility Vs. Market

How volatile is ATCO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACLL.F ($29.71) is trading below our estimate of fair value ($35.21)

Significantly Below Fair Value: ACLL.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACLL.F is good value based on its PE Ratio (11.9x) compared to the US Integrated Utilities industry average (18.4x).

PE vs Market: ACLL.F is good value based on its PE Ratio (11.9x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: ACLL.F is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ACLL.F is good value based on its PB Ratio (1.1x) compared to the US Integrated Utilities industry average (1.9x).


Next Steps

Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACLL.F's forecast earnings growth (13.9% per year) is above the savings rate (2.2%).

Earnings vs Market: ACLL.F's earnings (13.9% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: ACLL.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACLL.F's revenue (4.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ACLL.F's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACLL.F's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has ATCO performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACLL.F has a large one-off gain of CA$174.0M impacting its June 30 2020 financial results.

Growing Profit Margin: ACLL.F's current net profit margins (8.8%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: ACLL.F's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: ACLL.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACLL.F had negative earnings growth (-28%) over the past year, making it difficult to compare to the Integrated Utilities industry average (6.5%).


Return on Equity

High ROE: ACLL.F's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is ATCO's financial position?


Financial Position Analysis

Short Term Liabilities: ACLL.F's short term assets (CA$1.9B) exceed its short term liabilities (CA$822.0M).

Long Term Liabilities: ACLL.F's short term assets (CA$1.9B) do not cover its long term liabilities (CA$13.1B).


Debt to Equity History and Analysis

Debt Level: ACLL.F's debt to equity ratio (120.5%) is considered high.

Reducing Debt: ACLL.F's debt to equity ratio has reduced from 122.2% to 120.5% over the past 5 years.

Debt Coverage: ACLL.F's debt is not well covered by operating cash flow (20%).

Interest Coverage: ACLL.F's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is ATCO current dividend yield, its reliability and sustainability?

4.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ACLL.F's dividend (4.47%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: ACLL.F's dividend (4.47%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: ACLL.F's dividends per share have been stable in the past 10 years.

Growing Dividend: ACLL.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.2%), ACLL.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACLL.F's dividends in 3 years are forecast to be covered by earnings (62% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nancy Southern (63 yo)

20.75yrs

Tenure

CA$2,075,300

Compensation

Ms. Nancy C. Southern has been Executive Chairman at CU Inc. She serves as Chief Executive Officer of ATCO Ltd. since January 2000. Ms. Southern served as the Chief Executive Officer at Canadian Utilities ...


CEO Compensation Analysis

Compensation vs Market: Nancy's total compensation ($USD1.58M) is below average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Nancy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nancy Southern
Chair & CEO20.75yrsCA$2.08m0.54%
CA$ 18.5m
Dennis DeChamplain
Executive VP & CFO3.33yrsCA$2.16m0.038%
CA$ 1.3m
Siegfried Kiefer
Member of Office of the Chairno dataCA$2.14m0.072%
CA$ 2.4m
Wayne Stensby
Executive Vice President of Puerto Rico0.75yrCA$1.40m0.029%
CA$ 973.5k
Adam Beattie
President of Structures - ATCO Structures & Logistics Ltd.no dataCA$1.34m0.0091%
CA$ 308.8k
Myles Dougan
Director of Investor Relationsno datano datano data
Donna Pincott
Director of Corporate Communicationsno datano datano data
Robert Myles
Executive Vice President of Corporate Development0.75yrno datano data
Brian Bale
Senior VP of IT & Real Estate and Special Advisor to the CEOno dataCA$573.52kno data
J.D. Creaghan
Managing Director of Australian Operations & Chief Operating Officer of Australian Operations3.33yrsno data0.0069%
CA$ 233.2k
George Lidgett
Executive VP & GM of Utilitiesno dataCA$1.55m0.031%
CA$ 1.1m
Jim Landon
President of Frontecno datano datano data

3.3yrs

Average Tenure

58yo

Average Age

Experienced Management: ACLL.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nancy Southern
Chair & CEO20.75yrsCA$2.08m0.54%
CA$ 18.5m
Roger Urwin
Independent Director6.42yrsCA$419.94k0.0069%
CA$ 233.2k
Charles Wilson
Independent Lead Director17.5yrsCA$658.93k0.053%
CA$ 1.8m
Robert Routs
Independent Director8.42yrsCA$306.18k0.013%
CA$ 436.9k
Robert Booth
Director12.75yrsCA$253.00k0.019%
CA$ 629.8k
Michael R. Rayfield
Independent Director11.42yrsCA$245.00k0.022%
CA$ 752.2k
Denis Ellard
Independent Director6.42yrsCA$231.00k0.0084%
CA$ 284.7k
Susan Werth
Independent Director6.25yrsCA$245.00k0.016%
CA$ 528.5k
Linda Southern-Heathcott
Vice Chairman of the Board3.92yrsCA$449.50k0.23%
CA$ 7.7m

7.8yrs

Average Tenure

73yo

Average Age

Experienced Board: ACLL.F's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACLL.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ATCO Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ATCO Ltd.
  • Ticker: ACLL.F
  • Exchange: OTCPK
  • Founded: 1947
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: CA$4.449b
  • Listing Market Cap: CA$3.390b
  • Shares outstanding: 114.35m
  • Website: https://www.atco.com

Number of Employees


Location

  • ATCO Ltd.
  • West Building
  • 4th Floor
  • Calgary
  • Alberta
  • T3E 8B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACO.XTSX (The Toronto Stock Exchange)YesClass I Non-Voting SharesCACADJan 1981
8A6DB (Deutsche Boerse AG)YesClass I Non-Voting SharesDEEURJan 1981
ACLL.FOTCPK (Pink Sheets LLC)YesClass I Non-Voting SharesUSUSDJan 1981
ACO.YTSX (The Toronto Stock Exchange)Class II Voting SharesCACADJan 1981
ACLT.FOTCPK (Pink Sheets LLC)Class II Voting SharesUSUSDJan 1981

Biography

ATCO Ltd., together with its subsidiaries, provides housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:17
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.