ACO-X:CA:TSX-ATCO Ltd (CAD)

COMMON STOCK | Utilities—Diversified | TSX

Last Closing Price

CAD 37.51

Change

+0.79 (+2.15)%

Market Cap

CAD 4.03B

Volume

0.36M

Average Target Price

CAD 52.22 (+39.22%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

ATCO Ltd., together with its subsidiaries, engages in the electricity, pipeline and liquid, and retail energy businesses in Canada, Australia, and internationally. The company operates through Canadian Utilities Limited, Structures & Logistics, Neltume Ports, and Corporate & Other segments. The Canadian Utilities Limited segment provides electricity services, such as electricity generation, transmission, distribution, and other related infrastructure solutions; and pipelines and liquid services that include integrated natural gas transmission, distribution and storage, industrial water solutions, and related infrastructure development, as well as retails natural gas and electricity. The Structures & Logistics segment provides modular facilities, site support services, and logistics and operations management services. The Neltume Ports segment operates port facilities. The Corporate & Other segment provides commercial real estate services. As of December 31, 2018, the company had natural gas, coal, and hydroelectric generating plants with a total capacity of 3,656 megawatts. ATCO Ltd. was founded in 1947 and is headquartered in Calgary, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-30 )

Largest Industry Peers for Utilities—Diversified

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
BIP-UN:CA Brookfield Infrastructure Part..

+4.66 (+9.09%)

CAD16.41B 834.48 18.48
EMA:CA Emera Incorporated

+3.39 (+6.70%)

CAD12.28B 18.34 12.83
EMA-PC:CA Emera Incorporated

-0.57 (-4.00%)

CAD9.97B 5.16 8.82
CU-PF:CA Canadian Utilities Limited

+0.57 (+3.18%)

CAD8.95B 5.53 7.90
EMA-PA:CA Emera Incorporated

+0.35 (+3.67%)

CAD8.93B 3.45 8.45
CU-X:CA Canadian Utilities Limited

-0.69 (-2.14%)

CAD8.90B 9.95 10.24
CU-PE:CA Canadian Utilities Limited

N/A

CAD8.87B 5.96 8.27
CU:CA Canadian Utilities Limited

+1.23 (+3.84%)

CAD8.73B 9.90 10.22
JE:CA Just Energy Group Inc

-0.05 (-6.94%)

CAD0.11B 2.80 17.20

ETFs Containing ACO-X:CA

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Utilities—Diversified)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -24.63% 40% F 47% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -24.63% 40% F 46% F
Trailing 12 Months  
Capital Gain -16.64% 33% F 57% F
Dividend Return 2.70% 17% F 80% B-
Total Return -13.95% 33% F 59% F
Trailing 5 Years  
Capital Gain -16.87% 50% F 52% F
Dividend Return 14.00% 17% F 55% F
Total Return -2.86% 50% F 52% F
Average Annual (5 Year Horizon)  
Capital Gain 6.11% 67% D+ 61% D-
Dividend Return 3.10% 17% F 67% D+
Total Return 9.21% 67% D+ 63% D
Risk Return Profile  
Volatility (Standard Deviation) 17.54% 50% F 44% F
Risk Adjusted Return 52.52% 67% D+ 47% F
Market Capitalization 4.03B 20% F 89% B+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Utilities—Diversified)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.86 50% F 76% C
Price/Book Ratio 1.00 56% F 43% F
Price / Cash Flow Ratio 2.62 90% A- 66% D
EV/EBITDA 8.51 70% C- 33% F
Management Effectiveness  
Return on Equity 13.16% 56% F 78% C+
Return on Invested Capital 9.13% 100% A+ 70% C-
Return on Assets 3.73% 60% D- 71% C-
Debt to Equity Ratio 231.70% 20% F 8% F
Technical Ratios  
Short Ratio 7.65 67% D+ 12% F
Short Percent N/A N/A N/A N/A N/A
Beta 0.74 30% F 62% D-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector