ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - TSX:ACO-Y - CA0467895094 - Common Stock
49.6 CAD
+0.74 (+1.51%)
ACO-Y gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 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 decent growth rate and is not valued too expensively. ACO-Y also has an excellent dividend rating. With these ratings, ACO-Y could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year ACO-Y was profitable.
In the past year ACO-Y had a positive cash flow from operations.
ACO-Y had positive earnings in each of the past 5 years.
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 (1.64%) which is in line with its industry peers.
ACO-Y has a better Return On Equity (9.28%) than 95.24% of its industry peers.
ACO-Y has a better Return On Invested Capital (3.71%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACO-Y is in line with the industry average of 3.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROIC | 3.71% |
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
ACO-Y has a Profit Margin (8.65%) which 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 24.24%. This is in the lower half of the industry: ACO-Y underperforms 76.19% of its industry peers.
In the last couple of years the Operating Margin of ACO-Y has declined.
ACO-Y has a Gross Margin of 75.61%. This is comparable to the rest of the industry: ACO-Y outperforms 42.86% of its industry peers.
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 | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% |
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
ACO-Y has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ACO-Y has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ACO-Y has been reduced compared to 5 years ago.
The debt/assets ratio for ACO-Y is higher compared to a year ago.
2.2 Solvency
ACO-Y has an Altman-Z score of 0.76. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, ACO-Y belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of ACO-Y is 33.61, which is on the high side as it means it would take ACO-Y, 33.61 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 33.61, ACO-Y belongs to the best of the industry, outperforming 95.24% 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.
With a Debt to Equity ratio value of 2.56, ACO-Y is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.73
WACC5.07%
2.3 Liquidity
ACO-Y has a Current Ratio of 1.61. This is a normal value and indicates that ACO-Y is financially healthy and should not expect problems in meeting its short term obligations.
ACO-Y's Current ratio of 1.61 is amongst the best of the industry. ACO-Y outperforms 95.24% of its industry peers.
ACO-Y has a Quick Ratio of 1.45. This is a normal value and indicates that ACO-Y is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.45, ACO-Y belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
The Revenue has been growing slightly by 7.64% in the past year.
ACO-Y shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
3.2 Future
The Earnings Per Share is expected to grow by 4.23% on average over the next years.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.20 indicates a reasonable valuation of ACO-Y.
The rest of the industry has a similar Price/Earnings ratio as ACO-Y.
When comparing the Price/Earnings ratio of ACO-Y to the average of the S&P500 Index (27.41), we can say ACO-Y is valued rather cheaply.
A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of ACO-Y.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACO-Y is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ACO-Y to the average of the S&P500 Index (22.88), we can say ACO-Y is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
ACO-Y's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACO-Y is cheaper than 71.43% of the companies in the same industry.
ACO-Y's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACO-Y is cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.49
PEG (5Y)1.83
EPS Next 2Y3.99%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 5.16, ACO-Y's dividend is way lower than its industry peers. On top of this 90.48% of the companies listed in the same industry pay a better dividend than ACO-Y!
ACO-Y's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
The dividend of ACO-Y has a limited annual growth rate of 3.93%.
ACO-Y has paid a dividend for at least 10 years, which is a reliable track record.
ACO-Y has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
ACO-Y pays out 50.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
ACO-Y's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.8%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
TSX:ACO-Y (9/16/2025, 7:00:00 PM)
49.6
+0.74 (+1.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.52%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap5.56B
Analysts78.67
Price Target58.38 (17.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP50.8%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)2.9%
Min EPS beat(4)-3.78%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)4.35%
Revenue beat(2)0
Avg Revenue beat(2)-9.2%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.59%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.35%
Revenue beat(12)1
Avg Revenue beat(12)-9.18%
Revenue beat(16)2
Avg Revenue beat(16)-8.91%
PT rev (1m)-0.38%
PT rev (3m)-2.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.01%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.69 | ||
| P/S | 1.1 | ||
| P/FCF | 15.31 | ||
| P/OCF | 2.37 | ||
| P/B | 1.17 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)4.43
EY8.93%
EPS(NY)4.64
Fwd EY9.35%
FCF(TTM)3.24
FCFY6.53%
OCF(TTM)20.97
OCFY42.27%
SpS45.3
BVpS42.22
TBVpS30.24
PEG (NY)1.49
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.03% | ||
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% | ||
| FCFM | 7.15% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 238.99% | ||
| Cap/Sales | 39.13% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 113.97% | ||
| Profit Quality | 82.69% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.76 |
F-Score6
WACC5.07%
ROIC/WACC0.73
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)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y15.06%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-5.22%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y13.97%
OCF growth 3Y5.63%
OCF growth 5Y7.34%