ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
TSX:ACO-Y - Toronto Stock Exchange - CA0467895094 - Common Stock - Currency: CAD
Taking everything into account, ACO-Y scores 5 out of 10 in our fundamental rating. ACO-Y was compared to 22 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-Y get a neutral evaluation. Nothing too spectacular is happening here. ACO-Y has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACO-Y had positive earnings in the past year.
In the past year ACO-Y had a positive cash flow from operations.
Each year in the past 5 years ACO-Y has been profitable.
Each year in the past 5 years ACO-Y had a positive operating cash flow.
1.2 Ratios
ACO-Y has a Return On Assets (1.61%) which is comparable to the rest of the industry.
ACO-Y's Return On Equity of 9.28% is amongst the best of the industry. ACO-Y outperforms 95.45% of its industry peers.
With an excellent Return On Invested Capital value of 3.69%, ACO-Y belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-Y is in line with the industry average of 2.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 9.28% | ||
| ROIC | 3.69% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
The Profit Margin of ACO-Y (8.70%) is comparable to the rest of the industry.
ACO-Y's Profit Margin has declined in the last couple of years.
ACO-Y has a Operating Margin of 24.30%. This is comparable to the rest of the industry: ACO-Y outperforms 54.55% of its industry peers.
ACO-Y's Operating Margin has declined in the last couple of years.
ACO-Y has a Gross Margin (76.51%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ACO-Y has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 8.7% | ||
| GM | 76.51% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-Y is destroying value.
The number of shares outstanding for ACO-Y remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ACO-Y has less shares outstanding
ACO-Y has a worse debt/assets ratio than last year.
2.2 Solvency
ACO-Y has an Altman-Z score of 0.74. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ACO-Y (0.74) is better than 95.45% of its industry peers.
The Debt to FCF ratio of ACO-Y is 30.48, which is on the high side as it means it would take ACO-Y, 30.48 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 30.48, ACO-Y belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-Y has dependencies on debt financing.
ACO-Y has a Debt to Equity ratio (2.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 30.48 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.74
WACC4.99%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ACO-Y should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.38, ACO-Y belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that ACO-Y should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.28, ACO-Y belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
ACO-Y shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.54%.
The Earnings Per Share has been decreasing by -3.04% on average over the past years.
The Revenue has been growing slightly by 4.24% in the past year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)0.54%
EPS 3Y21.23%
EPS 5Y-3.04%
EPS Q2Q%45.54%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%13.84%
3.2 Future
The Earnings Per Share is expected to grow by 1.93% on average over the next years.
The Revenue is expected to grow by 3.51% on average over the next years.
EPS Next Y0.24%
EPS Next 2Y1.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.55%
Revenue Next 2Y3.67%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.67, the valuation of ACO-Y can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-Y indicates a rather cheap valuation: ACO-Y is cheaper than 95.45% of the companies listed in the same industry.
ACO-Y is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of ACO-Y.
The rest of the industry has a similar Price/Forward Earnings ratio as ACO-Y.
When comparing the Price/Forward Earnings ratio of ACO-Y to the average of the S&P500 Index (22.10), we can say ACO-Y is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-Y is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACO-Y indicates a somewhat cheap valuation: ACO-Y is cheaper than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACO-Y does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)53.36
PEG (5Y)N/A
EPS Next 2Y1.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 5.45, ACO-Y's dividend is way lower than its industry peers. On top of this 90.91% of the companies listed in the same industry pay a better dividend than ACO-Y!
Compared to an average S&P500 Dividend Yield of 2.33, ACO-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
The dividend of ACO-Y has a limited annual growth rate of 3.93%.
ACO-Y has been paying a dividend for at least 10 years, so it has a reliable track record.
ACO-Y has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
ACO-Y pays out 51.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACO-Y is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.16%
EPS Next 2Y1.93%
EPS Next 3YN/A
TSX:ACO-Y (3/7/2025, 7:00:00 PM)
48.52
-1.48 (-2.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.02%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.45B
Analysts80
Price Target53.57 (10.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP51.16%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-11.97%
Min Revenue beat(2)-18.52%
Max Revenue beat(2)-5.42%
Revenue beat(4)0
Avg Revenue beat(4)-12.18%
Min Revenue beat(4)-18.95%
Max Revenue beat(4)-5.42%
Revenue beat(8)0
Avg Revenue beat(8)-12.84%
Revenue beat(12)1
Avg Revenue beat(12)-9.75%
Revenue beat(16)2
Avg Revenue beat(16)-8.99%
PT rev (1m)0%
PT rev (3m)-2.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.68%
Revenue NY rev (3m)4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.1 | ||
| P/FCF | 13.86 | ||
| P/OCF | 2.48 | ||
| P/B | 1.18 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 8 |
EPS(TTM)3.83
EY7.89%
EPS(NY)4.35
Fwd EY8.96%
FCF(TTM)3.5
FCFY7.22%
OCF(TTM)19.57
OCFY40.34%
SpS44.03
BVpS41.27
TBVpS29.51
PEG (NY)53.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 9.28% | ||
| ROCE | 4.77% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.79% | ||
| ROICexgc | 4% | ||
| OM | 24.3% | ||
| PM (TTM) | 8.7% | ||
| GM | 76.51% | ||
| FCFM | 7.95% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
ROICexc(3y)4.06%
ROICexc(5y)3.97%
ROICexgc(3y)4.27%
ROICexgc(5y)4.16%
ROCE(3y)5.04%
ROCE(5y)4.9%
ROICexcg growth 3Y1.58%
ROICexcg growth 5Y-6.25%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-6.55%
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 30.48 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 222.44% | ||
| Cap/Sales | 36.5% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 109.2% | ||
| Profit Quality | 91.4% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 0.74 |
F-Score4
WACC4.99%
ROIC/WACC0.74
Cap/Depr(3y)212.07%
Cap/Depr(5y)195.52%
Cap/Sales(3y)33.77%
Cap/Sales(5y)31.75%
Profit Quality(3y)134.57%
Profit Quality(5y)187.54%
High Growth Momentum
Growth
EPS 1Y (TTM)0.54%
EPS 3Y21.23%
EPS 5Y-3.04%
EPS Q2Q%45.54%
EPS Next Y0.24%
EPS Next 2Y1.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.24%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%13.84%
Revenue Next Year4.55%
Revenue Next 2Y3.67%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
EBIT growth 1Y1.69%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year428.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.75%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y11.81%
OCF growth 3Y5.63%
OCF growth 5Y7.34%