ATCO Ltd. (ACO.X) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Algonquin Power & Utilities Corp.

Emera, Inc.

ATCO Ltd.

Capital Power Corp.

Fortis, Inc.

Hydro One Ltd.

Northland Power, Inc.

Brookfield Renewable Partners LP

TransAlta Corp.

Boralex, Inc.

TransAlta Renewables, Inc.

Why is ATCO Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 3.50% and Operating profit at 0.81% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 19.17%
NET PROFIT(Q) At CAD 55.59 MM has Fallen at -44.26%
PRE-TAX PROFIT(Q) At CAD 125 MM has Fallen at -33.77%

With ROE of 14.95%, it has a very attractive valuation with a 1.02 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.32%, its profits have risen by 5.3% ; the PEG ratio of the company is 1.3

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 4.32% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ATCO Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ATCO Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

ATCO Ltd.

6.46%

2.40

16.04%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.50%

EBIT Growth (5y)

0.81%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

5.12

Net Debt to Equity (avg)

2.35

Sales to Capital Employed (avg)

0.31

Tax Ratio

23.51%

Dividend Payout Ratio

51.11%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

8.14%

ROE (avg)

14.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.10

EV to EBIT

13.94

EV to EBITDA

8.19

EV to Capital Employed

1.03

EV to Sales

3.25

PEG Ratio

1.41

Dividend Yield

ROCE (Latest)

7.40%

ROE (Latest)

14.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,813 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 7.54

RAW MATERIAL COST(Y)

Fallen by -10.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.54%

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.17%

NET PROFIT(Q)

At CAD 55.59 MM has Fallen at -44.26%

PRE-TAX PROFIT(Q)

At CAD 125 MM has Fallen at -33.77%

Here's what is working for ATCO Ltd.

Dividend per share

Highest at CAD 7.54 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 1,813 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio

Highest at 7.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 211 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for ATCO Ltd.

Net Profit

At CAD 55.59 MM has Fallen at -44.26%

over average net sales of the previous four periods of CAD 99.73 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Inventory Turnover Ratio

Lowest at 19.17% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

At CAD 125 MM has Fallen at -33.77%

over average net sales of the previous four periods of CAD 188.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)