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

COMMON STOCK | Utilities—Diversified | TSX

Last Closing Price

CAD 41.33

Change

+0.06 (+0.15)%

Market Cap

CAD 4.45B

Volume

0.22M

Average Target Price

CAD 49.55 (+19.89%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

ATCO Ltd., together with its subsidiaries, provides housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally. The company offers workforce and residential housing; modular facilities; construction and site support; workforce lodging; facility operations and maintenance; defense operations; and disaster and emergency management services. It also provides commercial real estate services, including sale of commercial and industrial properties; and bulk cargo and port operation services, as well as operates container port facilities. The company's portfolio includes 15 commercial real estate properties, including 417,000 square feet of office property, 90,000 square feet of industrial property, and 180 acres of land. In addition, it engages in electricity generation, distribution, transmission, and related infrastructure services; natural gas distribution; owns and operates natural gas transmission pipelines in Alberta and Western Australia; and builds, owns, and operates non-regulated industrial water, natural gas storage, hydrocarbon storage, and natural gas related infrastructure to serve the midstream sectors. Further, it sells electricity and natural gas to residential and commercial customers; and provides natural gas appliance demonstrations and small cooking schools for homemakers. 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: 2020-07-06 )

Largest Industry Peers for Utilities—Diversified

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

+0.59 (+1.06%)

CAD16.65B 170.42 13.39
EMA:CA Emera Incorporated

+0.53 (+0.98%)

CAD12.93B 14.84 10.29
EMA-PC:CA Emera Incorporated

+0.03 (+0.19%)

CAD10.99B 5.03 N/A
CU-PF:CA Canadian Utilities Limited

+0.12 (+0.56%)

CAD10.81B 5.70 N/A
CU-PE:CA Canadian Utilities Limited

+0.13 (+0.56%)

CAD10.69B 6.13 N/A
EMA-PA:CA Emera Incorporated

N/A

CAD9.73B 3.53 N/A
CU:CA Canadian Utilities Limited

N/A

CAD9.38B 11.40 9.61
CU-X:CA Canadian Utilities Limited

-0.26 (-0.76%)

CAD8.88B 10.49 9.25
JE:CA Just Energy Group Inc

+0.01 (+1.35%)

CAD0.11B 2.80 N/A

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 -16.96% 30% F 33% F
Dividend Return 0.87% 29% F 48% F
Total Return -16.08% 30% F 33% F
Trailing 12 Months  
Capital Gain -7.70% 33% F 48% F
Dividend Return 2.78% 40% F 78% C+
Total Return -4.92% 33% F 53% F
Trailing 5 Years  
Capital Gain 1.75% 67% D+ 54% F
Dividend Return 16.02% 17% F 62% D-
Total Return 17.76% 67% D+ 60% D-
Average Annual (5 Year Horizon)  
Capital Gain 5.18% 67% D+ 61% D-
Dividend Return 3.13% 17% F 67% D+
Total Return 8.30% 67% D+ 63% D
Risk Return Profile  
Volatility (Standard Deviation) 18.21% 50% F 44% F
Risk Adjusted Return 45.60% 67% D+ 47% F
Market Capitalization 4.45B 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 8.87 50% F 75% C
Price/Book Ratio 1.05 100% A+ 56% F
Price / Cash Flow Ratio 2.89 100% A+ 70% C-
EV/EBITDA 6.03 100% A+ 72% C-
Management Effectiveness  
Return on Equity 12.29% 56% F 78% C+
Return on Invested Capital 9.08% 90% A- 72% C-
Return on Assets 3.38% 60% D- 69% D+
Debt to Equity Ratio 231.58% 22% F 9% F
Technical Ratios  
Short Ratio 4.19 67% D+ 21% F
Short Percent N/A N/A N/A N/A N/A
Beta 0.80 30% F 70% C-
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 compared to book value

The stock is trading low compared to its peers on a price to book value 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.

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.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free 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.

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.

Low Earnings Growth

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

Low Revenue Growth

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