Analysts rate ATCO Ltd (ACO-X:TSX) with a Buy rating and a target of $51

ATCO Ltd Stock Analysis:

Analysts rate ATCO Ltd with a consensus Buy rating and a 12-month average target price of $51.03 per share.

Based on 7 analysts’ estimates, the average analyst target price for ATCO Ltd over the next 12 months is CAD 51.03. The average analyst rating for ATCO Ltd. is Buy. ATCO Limited’s stock analysis by Stock Target Advisor is Slightly Bullish and is based on 9 positive and 7 negative indications. The stock price of ATCO Ltd. was CAD 41.26 at the most recent closing. The stock price of ATCO Ltd. has changed by +0.88% over the previous week, -12.29% over the previous month, and +1.78% over the previous year.

The Crowd Analyst target price is $42.75 for the next 12 months period, with a consensus Crowd rating of Hold.

About ATCO Ltd. (ACO-X:CA:TSX)

In Canada, Australia, and other countries, ATCO Ltd. and its subsidiaries offer solutions for housing, logistics and transportation, agricultural, water, real estate, and energy and energy infrastructure. The business provides services for workforce and residential housing, modular facilities, construction and site support, workforce lodging, facility operations and maintenance, defense operations, and emergency and catastrophe management. Additionally, it offers bulk cargo, port operation, and commercial real estate services, including the selling of commercial and industrial buildings. It also manages container port facilities. 14 commercial real estate properties, including 315 acres of land, 60,000 square feet of industrial space, and 417,000 square feet of office space, make up the company’s portfolio.  The Canadian company ATCO Ltd. was established in 1947, and its main office is in Calgary.

News:

The financial results for ATCO Limited for the quarter ended September 30, 2022 will be released on Thursday, October 27, 2022. 

ATCO Ltd. News Release.

Fundamental Analysts Breakdown:

Positive Fundamentals:

This stock has outperformed it’s industry rivals over the past 5 years (for a hold duration of at least 12 months) and is in the top percentile in terms of average annual dividend returns. For investors seeking high income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.

On a price to earnings metric, the stock is trading at a low price compared to its peers and is in the top quartile.  On a price to book value metric and price to cash flow ratio, the stock is also trading at a low price compared to its peers and is in the top quartile.   Although it can be priced too low, be sure there isn’t a specific explanation by looking at its financial performance.  The last four quarters saw positive total cash flow, and positive total free cash flow for the organization.  On a price to free cash flow ratio, the stock is trading at a low price compared to its peers and is in the top quartile.   In the preceding five years, this stock’s profits growth was in the top quartile for its industry.  When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.

Negative Fundamentals:

Low market capitalization is something we dislike.  This is one of the less significant companies in its industries with a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop or be purchased in the future, it may make it less stable in the long run.  Over the past five years, this company’s total returns have been erratic and higher than the industry average.  In comparison to its peers, the management of the company has produced a lower-than-average return on equity during the past four quarters.  It has also produced a lower median return on assets during this time.  In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals.  On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. This stock’s five-year median revenue growth was lower than average.