ATCO Ltd. (ACO-X.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+234.3%

CA$278.32

vs CA$83.26 price

Levered DCF

CA$62.98

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.83

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	42.07×	12.42×	10.11×	6.84×	19.77×	8.41×	5.66×	13.45×
P/B	1.4×	1.15×	0.99×	1.1×	1.19×	1.03×	1.42×	1.18×
P/S	1.23×	1.08×	0.92×	0.97×	1.14×	1.06×	1.21×	0.9×
EV / EBITDA	8.03×	8.41×	7.5×	6.67×	8.28×	7.57×	7.11×	8.05×
Gross margin	26.1%	62.9%	64.0%	62.6%	63.3%	65.7%	66.0%	73.6%
Operating margin	12.2%	27.6%	31.5%	26.4%	24.2%	27.1%	33.1%	28.2%
Net margin	2.9%	8.7%	9.1%	7.4%	5.7%	6.4%	10.9%	6.7%
Current ratio	1.8×	1.38×	1.14×	1.55×	1.4×	1.9×	2.24×	1.2×
Debt / equity	2.96×	2.59×	2.53×	2.33×	2.47×	2.4×	2.38×	2.92×
Interest coverage	1.15×	2.5×	3.03×	3.06×	2.46×	2.54×	3.16×	2.82×
Dividend yield	3.6%	4.1%	4.9%	4.4%	4.2%	4.8%	3.3%	3.9%
Payout ratio	151.3%	51.2%	49.8%	57.0%	83.3%	79.4%	36.3%	52.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.3%	9.3%	9.8%	8.5%	6.0%	6.2%	12.8%	8.7%
Return on invested capital	1.7%	4.2%	4.8%	4.4%	3.6%	3.8%	7.0%	4.6%
Return on assets	0.5%	1.6%	1.7%	1.5%	1.1%	1.1%	2.4%	1.4%
Free cash flow yield	3.6%	-0.5%	1.3%	11.1%	5.4%	11.7%	-1.5%	-13.7%
Earnings yield	2.4%	8.1%	9.9%	7.7%	5.0%	6.0%	9.0%	7.4%
Enterprise value	CA$18.7B	CA$16.9B	CA$15.3B	CA$14B	CA$13.9B	CA$12.8B	CA$14.1B	CA$14.8B
Net debt / EBITDA	5.31×	5.76×	5.35×	4.37×	5.38×	5.1×	4.24×	5.64×
Cash conversion cycle (days)	-16	-106	-114	-144	-114	-100	-84	-187