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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATCO was profitable.
ATCO had a positive operating cash flow in the past year.
In the past 5 years ATCO has always been profitable.
In the past 5 years ATCO always reported a positive cash flow from operatings.
1.2 Ratios
ATCO has a Return On Assets (4.97%) which is in line with its industry peers.
The Return On Equity of ATCO (12.69%) is comparable to the rest of the industry.
ATCO's Return On Invested Capital of 5.65% is in line compared to the rest of the industry. ATCO outperforms 50.00% of its industry peers.
ATCO had an Average Return On Invested Capital over the past 3 years of 5.96%. This is significantly below the industry average of 15.29%.
| 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
With a decent Profit Margin value of 33.08%, ATCO is doing good in 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's Operating Margin of 43.23% is fine compared to the rest of the industry. ATCO outperforms 62.50% of its industry peers.
ATCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.18%, ATCO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATCO is destroying value.
Compared to 1 year ago, ATCO has more shares outstanding
Compared to 1 year ago, ATCO has about the same debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.75, ATCO is doing worse than 75.00% of the companies in the same industry.
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 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.
ATCO's Current ratio of 0.57 is on the low side compared to the rest of the industry. ATCO is outperformed by 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 worse Quick ratio (0.52) than 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%.
Measured over the past years, ATCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.00% on average per year.
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
The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
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.
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.64, 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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, ATCO is valued rather cheaply.
| 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 the industry average as 75.00% of the companies are valued more expensively.
| 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.
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.
Compared to an average S&P500 Dividend Yield of 2.52, ATCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
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%
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%