ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:ACO-Y • CA0467895094
60 CAD
-0.52 (-0.86%)
Last: Dec 12, 2025, 07:00 PM
We assign a fundamental rating of 4 out of 10 to ACO-Y. ACO-Y was compared to 19 industry peers in the Multi-Utilities industry. ACO-Y has an average financial health and profitability rating. ACO-Y has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years ACO-Y has always been profitable.
- In the past 5 years ACO-Y always reported a positive cash flow from operatings.
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 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.73%, ACO-Y is doing worse than 76.19% 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 3.73%.
| 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
- ACO-Y's Profit Margin of 8.38% is in line compared to the rest of the industry. ACO-Y outperforms 42.86% of its industry peers.
- In the last couple of years the Profit Margin of ACO-Y has declined.
- ACO-Y has a Operating Margin (24.56%) which is in line with its industry peers.
- ACO-Y's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 74.90%, ACO-Y perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- ACO-Y's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- ACO-Y has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ACO-Y is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.79, we must say that ACO-Y is in the distress zone and has some risk of bankruptcy.
- ACO-Y has a Altman-Z score of 0.79. This is amongst the best in the industry. ACO-Y outperforms 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 | 0.79 |
ROIC/WACC0.73
WACC5.13%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that ACO-Y should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.81, ACO-Y belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- A Quick Ratio of 1.66 indicates that ACO-Y should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.66, ACO-Y belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
| 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 10.19%, which is quite good.
- Measured over the past 5 years, ACO-Y shows a small growth in Earnings Per Share. The EPS has been growing by 6.10% on average per year.
- ACO-Y shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
- 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)10.19%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%13.58%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
3.2 Future
- ACO-Y is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.04% yearly.
- ACO-Y is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.61% yearly.
EPS Next Y9.29%
EPS Next 2Y5.14%
EPS Next 3Y5.04%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ACO-Y is valuated correctly with a Price/Earnings ratio of 13.22.
- ACO-Y's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, ACO-Y is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.65 indicates a correct valuation of ACO-Y.
- The rest of the industry has a similar Price/Forward Earnings ratio as ACO-Y.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. ACO-Y is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACO-Y is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ACO-Y.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 8.55 |
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)1.42
PEG (5Y)2.16
EPS Next 2Y5.14%
EPS Next 3Y5.04%
5. Dividend
5.1 Amount
- ACO-Y has a Yearly Dividend Yield of 3.63%.
- With a Dividend Yield of 3.63, ACO-Y pays less dividend than the industry average, which is at 5.19. 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 1.82, ACO-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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 52.20% 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 earnings are growing more, so the dividend growth is sustainable.
DP52.2%
EPS Next 2Y5.14%
EPS Next 3Y5.04%
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 for ACO-Y 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.
Can you provide the PE and PB ratios for ACO-Y stock?
The Price/Earnings (PE) ratio for ATCO LTD -CL 'II' (ACO-Y.CA) is 13.22 and the Price/Book (PB) ratio is 1.42.
What is the earnings growth outlook for ATCO LTD -CL 'II'?
The Earnings per Share (EPS) of ATCO LTD -CL 'II' (ACO-Y.CA) is expected to grow by 9.29% in the next year.