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Atlas Corporation (ATCO) Stock Fundamental Analysis

NYSE:ATCO - New York Stock Exchange, Inc. - MHY0436Q1098 - Common Stock - Currency: USD

15.48  0 (0%)

After market: 15.49 +0.01 (+0.06%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ATCO. ATCO was compared to 7 industry peers in the Transportation Infrastructure industry. While ATCO is still in line with the averages on profitability rating, there are concerns on its financial health. ATCO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
ATCO had positive earnings in each of the past 5 years.
ATCO had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M

1.2 Ratios

With a Return On Assets value of 4.97%, ATCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ATCO has a Return On Equity (12.69%) which is in line with its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for ATCO is significantly below the industry average of 15.76%.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

1.3 Margins

ATCO's Profit Margin of 33.08% is fine compared to the rest of the industry. ATCO outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of ATCO has grown nicely.
ATCO has a better Operating Margin (43.23%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of ATCO has grown nicely.
ATCO's Gross Margin of 79.18% is amongst the best of 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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 60 80

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1

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.
The number of shares outstanding for ATCO has been increased compared to 1 year ago.
The debt/assets ratio for ATCO has remained at the same level compared to a year ago.
ATCO Yearly Shares OutstandingATCO Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
With a Altman-Z score value of 0.75, ATCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
ATCO has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.22, ATCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B

2.3 Liquidity

A Current Ratio of 0.57 indicates that ATCO may have some problems paying its short term obligations.
With a Current ratio value of 0.57, ATCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 worse Quick ratio (0.52) than 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 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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5

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%.
ATCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.00% yearly.
The Revenue has been growing slightly by 3.09% in the past year.
ATCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.35% yearly.
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.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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6

4. Valuation

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.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ATCO is valued rather cheaply.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of ATCO.
100.00% of the companies in the same industry are more expensive than ATCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATCO to the average of the S&P500 Index (22.68), we can say ATCO is valued rather cheaply.
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

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 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.
The decent profitability rating of ATCO 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%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.26%, ATCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.98, ATCO pays a better dividend. On top of this ATCO pays more dividend than 87.50% of the companies listed in the same industry.
With a Dividend Yield of 1.26, ATCO pays less dividend than the S&P500 average, which is at 2.27.
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

32.07% of the earnings are spent on dividend by ATCO. This is a low number and 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 2015 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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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 2023-02-15/amc
Earnings (Next)05-09 2023-05-09/amc
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 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
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
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 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%