Atlas Corporation (ATCO) Stock Fundamental Analysis
NYSE:ATCO - New York Stock Exchange, Inc. - MHY0436Q1098 - Common Stock - Currency: USD
Overall ATCO gets a fundamental rating of 4 out of 10. We evaluated ATCO against 7 industry peers in the Transportation Infrastructure industry. There are concerns on the financial health of ATCO while its profitability can be described as average. ATCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ATCO had positive earnings in the past year.
In the past year ATCO had a positive cash flow from operations.
Each year in the past 5 years ATCO has been profitable.
In the past 5 years ATCO always reported a positive cash flow from operatings.
1.2 Ratios
ATCO's Return On Assets of 4.97% is in line compared to the rest of the industry. ATCO outperforms 50.00% of its industry peers.
The Return On Equity of ATCO (12.69%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.65%, ATCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ATCO had an Average Return On Invested Capital over the past 3 years of 5.96%. This is significantly below the industry average of 14.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 12.69% | ||
| ROIC | 5.65% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.96%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 33.08%, ATCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ATCO's Profit Margin has improved in the last couple of years.
The Operating Margin of ATCO (43.23%) is better than 62.50% of its industry peers.
ATCO's Operating Margin has improved in the last couple of years.
The Gross Margin of ATCO (79.18%) is better than 87.50% of its industry peers.
In the last couple of years the Gross Margin of ATCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.23% | ||
| PM (TTM) | 33.08% | ||
| GM | 79.18% |
OM growth 3Y-10.7%
OM growth 5Y4.35%
PM growth 3Y0.57%
PM growth 5Y19.94%
GM growth 3Y-7.41%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
ATCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ATCO has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ATCO has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that ATCO is in the distress zone and has some risk of bankruptcy.
ATCO has a worse Altman-Z score (0.75) than 75.00% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ATCO has dependencies on debt financing.
ATCO's Debt to Equity ratio of 1.22 is fine compared to the rest of the industry. ATCO outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.89
WACC6.37%
2.3 Liquidity
ATCO has a Current Ratio of 0.57. This is a bad value and indicates that ATCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ATCO (0.57) is worse than 75.00% of its industry peers.
ATCO has a Quick Ratio of 0.57. This is a bad value and indicates that ATCO is not financially healthy enough and could expect problems in meeting its short term obligations.
ATCO has a Quick ratio of 0.52. This is in the lower half of the industry: ATCO underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ATCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
The Earnings Per Share has been growing by 18.00% on average over the past years. This is quite good.
Looking at the last year, ATCO shows a small growth in Revenue. The Revenue has grown by 3.09% in the last year.
Measured over the past years, ATCO shows a quite strong growth in Revenue. The Revenue has been growing by 15.35% on average per year.
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y18%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y15.35%
Sales Q2Q%1.91%
3.2 Future
Based on estimates for the next years, ATCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
ATCO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.54% yearly.
EPS Next Y6.73%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y13.43%
Revenue Next 3Y12.32%
Revenue Next 5Y8.54%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
ATCO is valuated reasonably with a Price/Earnings ratio of 10.25.
Based on the Price/Earnings ratio, ATCO is valued cheaper than 100.00% of the companies in the same industry.
ATCO is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.61, the valuation of ATCO can be described as reasonable.
Based on the Price/Forward Earnings ratio, ATCO is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ATCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATCO is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATCO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATCO's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)1.52
PEG (5Y)0.57
EPS Next 2Y9.5%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, ATCO has a reasonable but not impressive dividend return.
ATCO's Dividend Yield is rather good when compared to the industry average which is at 3.98. ATCO pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.26, ATCO pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
ATCO has paid a dividend for less than 5 years, so there is no long track record yet.
ATCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ATCO pays out 32.07% of its income as dividend. This is a sustainable payout ratio.
DP32.07%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
15.48
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.36B
Analysts78
Price Target17.21 (11.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP32.07%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.71%
Min EPS beat(2)-17.82%
Max EPS beat(2)-3.61%
EPS beat(4)0
Avg EPS beat(4)-9.08%
Min EPS beat(4)-17.82%
Max EPS beat(4)-3.61%
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)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.11%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.47%
PT rev (3m)5.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.61 | ||
| P/S | 2.57 | ||
| P/FCF | N/A | ||
| P/OCF | 5.09 | ||
| P/B | 0.98 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)1.51
EY9.75%
EPS(NY)1.61
Fwd EY10.41%
FCF(TTM)-1.36
FCFYN/A
OCF(TTM)3.04
OCFY19.65%
SpS6.03
BVpS15.72
TBVpS15.18
PEG (NY)1.52
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 12.69% | ||
| ROCE | N/A | ||
| ROIC | 5.65% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 5.91% | ||
| OM | 43.23% | ||
| PM (TTM) | 33.08% | ||
| GM | 79.18% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.96%
ROIC(5y)N/A
ROICexc(3y)5.85%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-9.77%
ROICexcg growth 5Y5.36%
ROICexc growth 3Y-9.48%
ROICexc growth 5Y5.46%
OM growth 3Y-10.7%
OM growth 5Y4.35%
PM growth 3Y0.57%
PM growth 5Y19.94%
GM growth 3Y-7.41%
GM growth 5Y0.37%
F-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 327.01% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.75 |
F-Score5
WACC6.37%
ROIC/WACC0.89
Cap/Depr(3y)326.15%
Cap/Depr(5y)247.7%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.12%
EPS 3Y26.27%
EPS 5Y18%
EPS Q2Q%-9.52%
EPS Next Y6.73%
EPS Next 2Y9.5%
EPS Next 3Y12.36%
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y14.47%
Revenue growth 5Y15.35%
Sales Q2Q%1.91%
Revenue Next Year12.3%
Revenue Next 2Y13.43%
Revenue Next 3Y12.32%
Revenue Next 5Y8.54%
EBIT growth 1Y4.32%
EBIT growth 3Y2.22%
EBIT growth 5Y20.36%
EBIT Next Year69.04%
EBIT Next 3Y31.68%
EBIT Next 5Y22.33%
FCF growth 1Y39.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.29%
OCF growth 3Y3.03%
OCF growth 5Y17%