# ATCO Ltd. (ACO-X.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Multi-Utilities. Price C$72.78, market value C$8.2 billion.

## Valuation
- **P/E (trailing): 45.5×** (5-yr avg 17.0×, 3-yr avg 20.9×). ATCO Ltd. trades at 45.5× trailing earnings, well above its own five-year average of 17.0×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 14.0×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.4×**. Enterprise value is 8.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.9%** (5-yr avg 4.8%). Free cash flow equals 5.9% of the market value, above its five-year average of 4.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.2%**. The inverse of the P/E: 2.2% of the price is earned each year.

## Profitability
- **Gross margin: 32.0%**. ATCO Ltd. keeps 32.0% of revenue after the direct cost of what it sells.
- **Operating margin: 12.8%**. 12.8% of revenue is left after running the business.
- **Net margin: 2.9%**. 2.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.3%**. 3.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 2.8%**. Return on all capital, debt included, is 2.8%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.7%**. Each dollar of assets produces 0.7% of profit.

## Growth
- **Revenue growth (1 yr): 4.1%** (3-yr 1.1%/yr, 5-yr 5.5%/yr). Revenue grew 4.1% over the last year, against 5.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -65.3%** (3-yr -40.1%/yr, 5-yr -21.0%/yr). Earnings per share fell 65.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -24.9%/yr**. Free cash flow has compounded at -24.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.96**. Debt is 2.96 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 5.0×**. It would take 5.0 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 1.2×**. Operating profit covers interest only 1.2×: fragile.
- **Current ratio: 1.80** (quick 1.70). Current assets cover the next year's liabilities 1.80 times.
- **Altman Z-score: 0.79**. A Z-score of 0.79 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.86%** (C$2.05 per share, trailing). ATCO Ltd. yields 2.86%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 151%** (48% of free cash flow). The dividend exceeds earnings (151% payout), though free cash flow still covers it.
- **Consecutive years of increases: 19**. 19 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 3.0%/yr** (1-yr 2.9%). The dividend has grown 3.0% a year over five years.
- **Shareholder yield: 0.3%**. Dividends plus net buybacks return 0.3% of the market value a year.

## Price and momentum
- **Total return (1 yr): 51.8%** (YTD 31.1%, 3-mo 0.9%). The shares are up 51.8% over twelve months including dividends.
- **From 52-week high: -10.6%** (53.2% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): -0.10** (volatility 17%). Beta of -0.10 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ACO-X.TO · Page: https://foliofundamentals.com/stocks/aco-x.to

Not investment advice.