ATCO LTD -CL 'II' (ACO-Y.CA) Stock Fundamental Analysis
Canada - TSX:ACO-Y - CA0467895094 - Common Stock
60.5 CAD
0 (0%)
Overall ACO-Y gets a fundamental rating of 5 out of 10. We evaluated ACO-Y 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. While showing a medium growth rate, ACO-Y is valued expensive at the moment.
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.
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 (1.64%) which is comparable to the rest of the industry.
The Return On Equity of ACO-Y (9.28%) is better than 95.00% of its industry peers.
ACO-Y has a Return On Invested Capital of 3.71%. This is in the better half of the industry: ACO-Y outperforms 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 of 8.65%. This is comparable to the rest of the industry: ACO-Y outperforms 45.00% of its industry peers.
ACO-Y's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.24%, ACO-Y is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ACO-Y has declined.
The Gross Margin of ACO-Y (75.61%) 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 | 24.24% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACO-Y is destroying value.
Compared to 1 year ago, ACO-Y has about the same amount of shares outstanding.
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 0.79. 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 (0.79) than 85.00% of its industry peers.
ACO-Y has a debt to FCF ratio of 33.61. This is a negative value and a sign of low solvency as ACO-Y would need 33.61 years to pay back of 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 95.00% of the companies in the same industry.
ACO-Y has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.56, ACO-Y is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.72
WACC5.18%
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 has a better Current ratio (1.61) than 95.00% of its industry peers.
A Quick Ratio of 1.45 indicates that ACO-Y should not have too much problems paying its short term obligations.
The Quick ratio of ACO-Y (1.45) is better than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
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 10.20%, which is quite good.
ACO-Y shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
The Revenue has been growing slightly by 7.64% in the past 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)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 4.72% 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 3Y4.72%
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
The Price/Earnings ratio is 13.66, which indicates a correct valuation of ACO-Y.
ACO-Y's Price/Earnings ratio is in line with the industry average.
ACO-Y's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
The Price/Forward Earnings ratio is 13.04, which indicates a correct 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, ACO-Y is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACO-Y indicates a somewhat cheap valuation: ACO-Y is cheaper than 65.00% of the companies listed in the same industry.
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 | 18.68 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.82
PEG (5Y)2.24
EPS Next 2Y3.99%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
ACO-Y has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 5.46, ACO-Y's dividend is way lower than its industry peers. On top of this 90.00% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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
50.80% 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 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 3Y4.72%
TSX:ACO-Y (10/31/2025, 7:00:00 PM)
60.5
0 (0%)
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 Cap6.78B
Revenue(TTM)5.08B
Net Income(TTM)439.00M
Analysts78.67
Price Target57.49 (-4.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-1.53%
PT rev (3m)-1.9%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.34 | ||
| P/FCF | 18.68 | ||
| P/OCF | 2.89 | ||
| P/B | 1.43 | ||
| P/tB | 2 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)4.43
EY7.32%
EPS(NY)4.64
Fwd EY7.67%
FCF(TTM)3.24
FCFY5.35%
OCF(TTM)20.96
OCFY34.64%
SpS45.28
BVpS42.2
TBVpS30.23
PEG (NY)1.82
PEG (5Y)2.24
Graham Number64.85
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%
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-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 | 0.79 |
F-Score6
WACC5.18%
ROIC/WACC0.72
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 3Y4.72%
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 Year427.2%
EBIT Next 3Y80.42%
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%
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 5 / 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 5 / 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 7.51% 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 50.8%.