ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACO-Y - CA0467895094 - Common Stock
63.75 CAD
+2.75 (+4.51%)
Taking everything into account, ACO-Y scores 4 out of 10 in our fundamental rating. ACO-Y was compared to 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years ACO-Y has always 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 (1.55%) which is in line with its industry peers.
The Return On Equity of ACO-Y (9.08%) is better than 95.24% of its industry peers.
ACO-Y has a worse Return On Invested Capital (3.73%) than 76.19% 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 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 9.08% | ||
| ROIC | 3.73% |
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
With a Profit Margin value of 8.38%, ACO-Y perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
ACO-Y's Profit Margin has declined in the last couple of years.
The Operating Margin of ACO-Y (24.56%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ACO-Y has declined.
Looking at the Gross Margin, with a value of 74.90%, ACO-Y is in line with its industry, outperforming 42.86% of the companies in the same 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 | 24.56% | ||
| PM (TTM) | 8.38% | ||
| GM | 74.9% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACO-Y 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.
Compared to 1 year ago, ACO-Y has a worse debt to assets ratio.
2.2 Solvency
ACO-Y has an Altman-Z score of 0.80. This is a bad value and indicates that ACO-Y is not financially healthy and even has some risk of bankruptcy.
ACO-Y has a better Altman-Z score (0.80) than 85.71% of its industry peers.
The Debt to FCF ratio of ACO-Y is 27.90, which is on the high side as it means it would take ACO-Y, 27.90 years of fcf income to pay off all of its debts.
ACO-Y's Debt to FCF ratio of 27.90 is amongst the best of the industry. ACO-Y outperforms 95.24% of its industry peers.
A Debt/Equity ratio of 2.64 is on the high side and indicates that ACO-Y has dependencies on debt financing.
The Debt to Equity ratio of ACO-Y (2.64) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 27.9 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.71
WACC5.23%
2.3 Liquidity
A Current Ratio of 1.81 indicates that ACO-Y should not have too much problems paying its short term obligations.
ACO-Y has a Current ratio of 1.81. This is amongst the best in the industry. ACO-Y outperforms 95.24% of its industry peers.
A Quick Ratio of 1.66 indicates that ACO-Y should not have too much problems paying its short term obligations.
ACO-Y has a Quick ratio of 1.66. This is amongst the best in the industry. ACO-Y outperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
ACO-Y shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.30%, which is quite good.
The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
Looking at the last year, ACO-Y shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
Measured over the past years, ACO-Y shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)12.3%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%-9%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
3.2 Future
The Earnings Per Share is expected to grow by 4.92% on average over the next years.
Based on estimates for the next years, ACO-Y will show a small growth in Revenue. The Revenue will grow by 0.61% on average per year.
EPS Next Y8.28%
EPS Next 2Y4.17%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue Next Year-5%
Revenue Next 2Y-1%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.86, which indicates a correct valuation of ACO-Y.
The rest of the industry has a similar Price/Earnings ratio as ACO-Y.
Compared to an average S&P500 Price/Earnings ratio of 25.45, ACO-Y is valued a bit cheaper.
ACO-Y is valuated correctly with a Price/Forward Earnings ratio of 13.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACO-Y is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, ACO-Y is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ACO-Y, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACO-Y is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
ACO-Y's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.79
PEG (5Y)2.43
EPS Next 2Y4.17%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.71%.
With a Dividend Yield of 3.71, ACO-Y pays less dividend than the industry average, which is at 5.63. 90.48% of the companies listed in the same industry pay a better dividend than ACO-Y!
Compared to an average S&P500 Dividend Yield of 2.45, ACO-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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 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
52.20% of the earnings are spent on dividend by ACO-Y. This is a bit on the high side, but may be sustainable.
ACO-Y's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.2%
EPS Next 2Y4.17%
EPS Next 3Y4.92%
TSX:ACO-Y (11/10/2025, 7:00:00 PM)
63.75
+2.75 (+4.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.15%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap7.15B
Revenue(TTM)5.14B
Net Income(TTM)431.00M
Analysts78.57
Price Target57.49 (-9.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP52.2%
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)-9.84%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-9.73%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-11.91%
Revenue beat(12)0
Avg Revenue beat(12)-10.29%
Revenue beat(16)1
Avg Revenue beat(16)-9.26%
PT rev (1m)-1.53%
PT rev (3m)-1.9%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.71%
EPS NY rev (3m)4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.42%
Revenue NY rev (3m)-4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.39 | ||
| P/FCF | 15.4 | ||
| P/OCF | 2.93 | ||
| P/B | 1.51 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)4.29
EY6.73%
EPS(NY)4.66
Fwd EY7.3%
FCF(TTM)4.14
FCFY6.49%
OCF(TTM)21.76
OCFY34.13%
SpS45.88
BVpS42.35
TBVpS30.16
PEG (NY)1.79
PEG (5Y)2.43
Graham Number63.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 9.08% | ||
| ROCE | 4.79% | ||
| ROIC | 3.73% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 4.15% | ||
| OM | 24.56% | ||
| PM (TTM) | 8.38% | ||
| GM | 74.9% | ||
| FCFM | 9.02% |
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%
ROICexgc growth 3Y1.58%
ROICexgc 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-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 27.9 | ||
| Debt/EBITDA | 5.96 | ||
| Cap/Depr | 234.56% | ||
| Cap/Sales | 38.4% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 115.87% | ||
| Profit Quality | 107.66% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 0.8 |
F-Score7
WACC5.23%
ROIC/WACC0.71
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)12.3%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%-9%
EPS Next Y8.28%
EPS Next 2Y4.17%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
Revenue Next Year-5%
Revenue Next 2Y-1%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y25.67%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year427.2%
EBIT Next 3Y80.42%
EBIT Next 5YN/A
FCF growth 1Y1.09%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y16.42%
OCF growth 3Y5.63%
OCF growth 5Y7.34%
ATCO LTD -CL 'II' / ACO-Y.CA FAQ
Can you provide the ChartMill fundamental rating for ATCO LTD -CL 'II'?
ChartMill assigns a fundamental rating of 4 / 10 to ACO-Y.CA.
What is the valuation status of ATCO LTD -CL 'II' (ACO-Y.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ATCO LTD -CL 'II' (ACO-Y.CA). This can be considered as Overvalued.
Can you provide the profitability details for ATCO LTD -CL 'II'?
ATCO LTD -CL 'II' (ACO-Y.CA) has a profitability rating of 4 / 10.
What is the expected EPS growth for ATCO LTD -CL 'II' (ACO-Y.CA) stock?
The Earnings per Share (EPS) of ATCO LTD -CL 'II' (ACO-Y.CA) is expected to grow by 8.28% in the next year.
Can you provide the dividend sustainability for ACO-Y stock?
The dividend rating of ATCO LTD -CL 'II' (ACO-Y.CA) is 6 / 10 and the dividend payout ratio is 52.2%.