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%)
After Hours:

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

  • In the past year ATCO was profitable.
  • In the past year ATCO had a positive cash flow from operations.
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

  • The Return On Assets of ATCO (4.97%) is comparable to the rest of the industry.
  • ATCO's Return On Equity of 12.69% is in line compared to the rest of the industry. ATCO outperforms 50.00% of its industry peers.
  • The Return On Invested Capital of ATCO (5.65%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for ATCO is significantly below the industry average of 17.41%.
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.
  • With a decent Operating Margin value of 43.23%, ATCO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • ATCO's Operating Margin has improved in the last couple of years.
  • ATCO's Gross Margin of 79.18% is amongst the best of the industry. ATCO outperforms 87.50% of its industry peers.
  • ATCO's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. ATCO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATCO is destroying value.
  • ATCO has more shares outstanding than it did 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 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.
  • 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.
  • ATCO has a Debt to Equity ratio of 1.22. This is in the better half 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.
  • The Current ratio of ATCO (0.57) is worse than 75.00% of its industry peers.
  • A Quick Ratio of 0.52 indicates that ATCO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.52, ATCO is doing worse than 75.00% of the companies in the same industry.
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.
  • The Revenue has been growing slightly by 3.09% in the past 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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • With a Price/Earnings ratio of 10.25, the valuation of ATCO can be described as very reasonable.
  • Based on the Price/Earnings ratio, ATCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.50. ATCO is valued rather cheaply when compared to this.
  • 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.
  • When comparing the Price/Forward Earnings ratio of ATCO to the average of the S&P500 Index (22.67), 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.
  • 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%. Purely for dividend investing, there may be better candidates out there.
  • 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 1.89, 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

More info and screens

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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.