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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Algonquin Power & Utilities Corp.

Capital Power Corp.

Emera, Inc.

Fortis, Inc.

Hydro One Ltd.

Northland Power, Inc.

ATCO Ltd.

TransAlta Corp.

Boralex, Inc.

Brookfield Renewable Partners LP

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 5.43% and Operating profit at -9.28% over the last 5 years
The company is Net-Debt Free

With ROE of 4.39%, it has a expensive valuation with a 1.57 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 35.66%, its profits have fallen by -69.9%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ATCO Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

ATCO Ltd.

35.66%

5.91

16.04%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.43%

EBIT Growth (5y)

-9.28%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

5.12

Net Debt to Equity (avg)

2.35

Sales to Capital Employed (avg)

0.30

Tax Ratio

23.51%

Dividend Payout Ratio

151.08%

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

1.57

EV to EBIT

30.27

EV to EBITDA

9.29

EV to Capital Employed

1.16

EV to Sales

3.70

PEG Ratio

Dividend Yield

ROCE (Latest)

3.84%

ROE (Latest)

4.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,900 MM

PRE-TAX PROFIT(Q)

At CAD 311 MM has Grown at 518.91%

NET PROFIT(Q)

At CAD 142.25 MM has Grown at 470.32%

DIVIDEND PER SHARE(HY)

Highest at CAD 5.95

CASH AND EQV(HY)

Highest at CAD 2,434 MM

NET SALES(Q)

Highest at CAD 1,426 MM

OPERATING PROFIT(Q)

Highest at CAD 620 MM

OPERATING PROFIT MARGIN(Q)

Highest at 43.48 %

EPS(Q)

Highest at CAD 1.34

-11What is not working for the Company

NET PROFIT(HY)

At CAD -33.75 MM has Grown at -112.87%

ROCE(HY)

Lowest at 3.37%

DEBT-EQUITY RATIO (HY)

Highest at 256.96 %

Here's what is working for ATCO Ltd.

Pre-Tax Profit

At CAD 311 MM has Grown at 518.91%

over average net sales of the previous four periods of CAD 50.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 142.25 MM has Grown at 470.32%

over average net sales of the previous four periods of CAD 24.94 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 1,900 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 5.95 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 1,426 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 620 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 43.48 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CAD 1.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 2,434 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for ATCO Ltd.

Debt-Equity Ratio

Highest at 256.96 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at CAD 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income