ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACO-Y - CA0467895094 - Common Stock
65 CAD
+4 (+6.56%)
We assign a fundamental rating of 4 out of 10 to ACO-Y. ACO-Y was compared to 20 industry peers in the Multi-Utilities industry. ACO-Y has only an average score on both its financial health and profitability. ACO-Y is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACO-Y was profitable.
ACO-Y had a positive operating cash flow in the past year.
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
The Return On Assets of ACO-Y (1.55%) is comparable to the rest of the industry.
ACO-Y's Return On Equity of 9.08% is amongst the best of the industry. ACO-Y outperforms 95.24% of its industry peers.
The Return On Invested Capital of ACO-Y (3.73%) is worse than 76.19% of its industry peers.
ACO-Y had an Average Return On Invested Capital over the past 3 years of 3.92%. This is in line with the industry average of 3.84%.
| 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 has a Profit Margin (8.38%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ACO-Y has declined.
Looking at the Operating Margin, with a value of 24.56%, ACO-Y is in line with its industry, outperforming 42.86% of the companies in the same industry.
ACO-Y's Operating Margin has declined in the last couple of years.
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
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
Compared to 1 year ago, ACO-Y has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that ACO-Y is in the distress zone and has some risk of bankruptcy.
ACO-Y's Altman-Z score of 0.80 is amongst the best of the industry. ACO-Y outperforms 85.71% of its industry peers.
ACO-Y has a debt to FCF ratio of 27.90. This is a negative value and a sign of low solvency as ACO-Y would need 27.90 years to pay back of all of its debts.
ACO-Y has a better Debt to FCF ratio (27.90) than 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.
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.
ACO-Y has a Quick Ratio of 1.66. 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 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 10.19%, 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.
The Revenue has been growing slightly by 0.98% on average over the past years.
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
Based on estimates for the next years, ACO-Y will show a small growth in Earnings Per Share. The EPS will grow by 4.92% on average per year.
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 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
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.32 indicates a correct valuation of ACO-Y.
The rest of the industry has a similar Price/Earnings ratio as ACO-Y.
The average S&P500 Price/Earnings ratio is at 26.41. ACO-Y is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.96, the valuation of ACO-Y can be described as correct.
ACO-Y's Price/Forward Earnings ratio is in line with the industry average.
ACO-Y is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-Y is valued a bit more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ACO-Y.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.7 | ||
| 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)1.73
PEG (5Y)2.35
EPS Next 2Y4.17%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 4.53, 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!
Compared to an average S&P500 Dividend Yield of 2.32, 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 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
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 (12/1/2025, 7:00:00 PM)
65
+4 (+6.56%)
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 Cap7.29B
Revenue(TTM)5.14B
Net Income(TTM)431.00M
Analysts78.57
Price Target57.49 (-11.55%)
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)1
Avg EPS beat(2)2.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)8.05%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-3.78%
Max EPS beat(4)8.05%
EPS beat(8)7
Avg EPS beat(8)4.37%
EPS beat(12)9
Avg EPS beat(12)2.66%
EPS beat(16)12
Avg EPS beat(16)4.06%
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)-2.9%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.42%
Revenue NY rev (3m)-4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 13.96 | ||
| P/S | 1.42 | ||
| P/FCF | 15.7 | ||
| P/OCF | 2.99 | ||
| P/B | 1.53 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)4.54
EY6.98%
EPS(NY)4.66
Fwd EY7.16%
FCF(TTM)4.14
FCFY6.37%
OCF(TTM)21.76
OCFY33.48%
SpS45.88
BVpS42.35
TBVpS30.16
PEG (NY)1.73
PEG (5Y)2.35
Graham Number65.77
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)10.19%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%13.58%
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%.