Atlas Corporation (ATCO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ATCO • MHY0436Q1098

15.48 USD
0 (0%)
At close: Mar 27, 2023
15.49 USD
+0.01 (+0.06%)
After Hours: 3/27/2023, 8:27:59 PM
Fundamental Rating

4

Taking everything into account, ATCO scores 4 out of 10 in our fundamental rating. ATCO was compared to 6 industry peers in the Transportation Infrastructure industry. ATCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. ATCO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

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 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

  • Looking at the Return On Assets, with a value of 4.97%, ATCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • 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 17.92%.
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

  • The Profit Margin of ATCO (33.08%) is better than 62.50% of its industry peers.
  • In the last couple of years the Profit Margin of ATCO has grown nicely.
  • ATCO's Operating Margin of 43.23% is fine compared to the rest of the industry. ATCO outperforms 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.
  • 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

More info and screens

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.
  • 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.
  • 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 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.
  • Looking at the Current ratio, with a value of 0.57, ATCO is doing worse than 75.00% of the companies in the same industry.
  • 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

More info and screens

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%.
  • 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

  • The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
  • 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

  • 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.
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

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.25, the valuation of ATCO can be described as reasonable.
  • 100.00% of the companies in the same industry are more expensive than ATCO, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ATCO to the average of the S&P500 Index (28.32), we can say ATCO is valued rather cheaply.
  • The Price/Forward Earnings ratio is 9.61, which indicates a very decent valuation of ATCO.
  • Based on the Price/Forward 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/Forward Earnings ratio to 25.57, 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

  • Based on the Enterprise Value to EBITDA ratio, ATCO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ATCO's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.57
EPS Next 2Y9.5%
EPS Next 3Y12.36%

More info and screens

4

5. Dividend

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 1.83, 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

  • 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 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 / ATCO 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.