Atlas Corporation (ATCO) Fundamental Analysis & Valuation

NYSE:ATCO • MHY0436Q1098

Current stock price

15.48 USD
0 (0%)
At close:
15.49 USD
+0.01 (+0.06%)
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This ATCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ATCO Profitability Analysis

1.1 Basic Checks

  • ATCO had positive earnings in the past year.
  • ATCO had a positive operating cash flow in the past year.
ATCO Yearly Net Income VS EBIT VS OCF VS FCFATCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M

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.
  • ATCO has a Return On Equity (12.69%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 5.65%, ATCO is in line with its industry, 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 17.73%.
Industry RankSector 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
ATCO Yearly ROA, ROE, ROICATCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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.
  • ATCO has a better Operating Margin (43.23%) than 62.50% of its industry peers.
  • ATCO's Operating Margin has improved in the last couple of years.
  • ATCO has a Gross Margin of 79.18%. This is amongst the best in the industry. ATCO outperforms 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 RankSector 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%
ATCO Yearly Profit, Operating, Gross MarginsATCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 60 80

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1

2. ATCO Health Analysis

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.
  • The number of shares outstanding for ATCO has been increased compared to 1 year ago.
  • ATCO has about the same debt/assets ratio as last year.
ATCO Yearly Shares OutstandingATCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M 250M
ATCO Yearly Total Debt VS Total AssetsATCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

  • ATCO has an Altman-Z score of 0.75. This is a bad value and indicates that ATCO is not financially healthy and even has some risk of bankruptcy.
  • ATCO has a Altman-Z score of 0.75. This is in the lower half of the industry: ATCO underperforms 75.00% of its industry peers.
  • ATCO has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external 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 RankSector Rank
Debt/Equity 1.22
Debt/FCF N/A
Altman-Z 0.75
ROIC/WACC0.89
WACC6.37%
ATCO Yearly LT Debt VS Equity VS FCFATCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B

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.
  • ATCO has a worse Current ratio (0.57) 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's Quick ratio of 0.52 is on the low side compared to the rest of the industry. ATCO is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.52
ATCO Yearly Current Assets VS Current LiabilitesATCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ATCO Growth Analysis

3.1 Past

  • The earnings per share for ATCO have decreased strongly by -10.12% in the last year.
  • ATCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.00% yearly.
  • Looking at the last year, ATCO shows a small growth in Revenue. The Revenue has grown by 3.09% in the last year.
  • The Revenue has been growing by 15.35% on average over the past years. This is quite good.
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

  • ATCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.36% yearly.
  • Based on estimates for the next years, ATCO will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
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.
  • 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.
ATCO Yearly Revenue VS EstimatesATCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
ATCO Yearly EPS VS EstimatesATCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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5

4. ATCO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.25, which indicates a very decent valuation of ATCO.
  • Based on the Price/Earnings ratio, ATCO is valued cheaper than 100.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ATCO to the average of the S&P500 Index (25.71), we can say ATCO is valued rather cheaply.
  • ATCO is valuated reasonably with a Price/Forward Earnings ratio of 9.61.
  • ATCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ATCO is cheaper than 100.00% of the companies in the same industry.
  • ATCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.25
Fwd PE 9.61
ATCO Price Earnings VS Forward Price EarningsATCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATCO indicates a somewhat cheap valuation: ATCO is cheaper than 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.02
ATCO Per share dataATCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • ATCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ATCO Dividend Analysis

5.1 Amount

  • ATCO has a Yearly Dividend Yield of 1.26%.
  • Compared to an average industry Dividend Yield of 1.99, ATCO pays a better dividend. On top of this ATCO pays more dividend than 87.50% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.91, ATCO is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.26%

5.2 History

  • ATCO has been paying a dividend for less than 5 years, so it still needs to build a track record.
  • ATCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
ATCO Yearly Dividends per shareATCO Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 0.1 0.2 0.3 0.4 0.5

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%
ATCO Yearly Income VS Free CF VS DividendATCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M -400M -600M
ATCO Dividend Payout.ATCO Dividend Payout, showing the Payout Ratio.ATCO Dividend Payout.PayoutRetained Earnings

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ATCO Fundamentals: All Metrics, Ratios and Statistics

Atlas Corporation

NYSE:ATCO (3/27/2023, 8:27:59 PM)

After market: 15.49 +0.01 (+0.06%)

15.48

0 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-15
Earnings (Next)05-09
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.36B
Revenue(TTM)1.70B
Net Income(TTM)561.50M
Analysts78
Price Target17.21 (11.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y-9.77%
ROICexgc 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 RankSector 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%

Atlas Corporation / ATCO Fundamental Analysis FAQ

What is the fundamental rating for ATCO stock?

ChartMill assigns a fundamental rating of 3 / 10 to ATCO.


What is the valuation status of Atlas Corporation (ATCO) stock?

ChartMill assigns a valuation rating of 7 / 10 to Atlas Corporation (ATCO). This can be considered as Undervalued.


What is the profitability of ATCO stock?

Atlas Corporation (ATCO) has a profitability rating of 1 / 10.


How financially healthy is Atlas Corporation?

The financial health rating of Atlas Corporation (ATCO) is 1 / 10.


Can you provide the expected EPS growth for ATCO stock?

The Earnings per Share (EPS) of Atlas Corporation (ATCO) is expected to grow by 6.73% in the next year.