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ATCO Ltd (ACO-X) Fair Value & Analysis

Utilities · CA · Market cap C$7.9B (≈ $5.7B) · ISIN CA0467894006

What is ATCO Ltd really worth?

AL ATCO Ltd ACO-X · TO
PriceC$72.78
Fair ValueC$48.13
Upside−33.9%
Quality43/100

Below-average quality, and trading another 51% above our fair value of C$48.13.

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Risks

!Expensive Growth (revenue 5y +5.5 %/yr)
!Thin margins · 3.1% net margin
!High debt · generates free cash flow
!Trails peers (4/15)
!Moderate moat 46/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 6 out of 100
!Weak on past: 12 out of 100

For context

·2.77% dividend yield
Evidence: Medium Range C$36.11 – C$60.17

Fair value as of: Aug 21, 2026

From 12 valuation models · updated 15 days ago

Fair value updated Aug 21, 2026, revised from C$26.74 to C$48.13 (+80.0%) since Aug 13, 2026. Share price −5.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (C$60.17). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

C$81.41 C$29.86 Fair Value C$48.13 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range C$29.86 – C$81.41 · fair‑value band C$36.11 – C$60.17 · the C$72.78 price screens above the C$48.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

ATCO Ltd (ACO-X) currently trades at C$72.78, while our model-based Fair Value estimate is C$48.13, implying the stock looks roughly 51.2% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Utilities sector. Bull case: the DCF Models group reads highest at a median of C$38.02 per share, and 1 of the 10 models we run sit above the C$72.78 price. Bear case: the Earnings-Based group reads lowest at C$4.99, and 9 of the 10 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, ATCO Ltd generated revenue of C$5.2B at a net margin of 3.1%. Revenue grew 1.1% year over year. It earns a return on equity of 3.0%. Net debt stands at C$12.4B. Fundamentals as of Aug 21, 2026

Our scenario range runs from C$36.11 (bear case) to C$60.17 (bull case); at C$72.78, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 57% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at −34%, ACO-X screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence C$32.21 C$31.25 C$26.38 76
5Y EBITDA Exit C$38.02 C$108.37 72
Growth-Adj P/E C$15.03 C$21.47 C$27.92 67
All 12 models by family
DCF Models
5Y EBITDA Exit C$38.02 C$108.37 72
10Y EBITDA Exit C$52.35 65
Earnings-Based
Graham-Dodd C$10.10 C$22.11 C$28.17 66
PEG = 1.0 C$3.49 C$4.99 C$6.49 57
Multiples
P/E Multiple C$20.06 C$26.74 C$33.43 63
P/S Multiple C$18.94 C$25.26 C$31.57 58
P/B Multiple C$18.94 C$25.26 C$31.57 55
EV/EBIT C$1.07 61
EV/EBITDA C$36.17 C$86.68 C$137.19 63
Asset-Based
NCAV (Graham) C$22.39 C$30.01 C$44.79 54
Economic Profit
Residual Income best evidence C$32.21 C$31.25 C$26.38 76
Growth Earnings
Growth-Adj P/E C$15.03 C$21.47 C$27.92 67

Widest divergence: DCF Models (C$38.02) versus Earnings-Based (C$4.99). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 52.4
P/S ratio 1.53 P/E × margin
EPS (TTM) C$1.39 price ÷ EPS = P/E 52.4
Dividend yield 2.8% payout 145%
Net margin 2.9% FY2025
Return on equity 3.0% TTM
More key figures
Profitability
Return on assets (EBIT) 4.6% avg 5y
Operating margin 28.4% TTM
Growth
Revenue (TTM) C$5.2B TTM
Revenue growth (YoY) +1.1% 3y avg +1.1%
EPS growth (YoY) +4.7%
Balance sheet & cash flow
Free cash flow C$227M FY2025
Net debt C$12.4B FY2025 · ≈ 54.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 39 · Market factors (momentum, volatility) 81

Profitability 16
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 6
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 88
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

ATCO Ltd., together with its subsidiaries, engages in the energy, logistics and transportation, shelter, and real estate services in Canada, Australia, and internationally.

Full company description

ATCO Ltd., together with its subsidiaries, engages in the energy, logistics and transportation, shelter, and real estate services in Canada, Australia, and internationally. The company engages in electricity and natural gas transmission and distribution, and international electricity operations; energy storage, electricity generation, storage and industrial water solutions, and clean fuels; and electricity and natural gas retail sales, and home maintenance solutions. It also offers residential and workforce housing, modular facilities, construction, site support, workforce lodging, facility operations and maintenance, defense operations, and disaster and emergency management services. In addition, the company provides commercial real estate business that holds investments for sale, lease, and development; recycling and marketing of ash; and generates electricity through hydro, solar, wind, and natural gas facilities; retail electricity and natural gas, home products, and home maintenance services; and retail food services under Blue Flame Kitchen brand name, as well as professional home advices. Further, the company provides ports and transportation logistics; natural gas liquids storage services; and integrated water services, including pipeline transportation, storage, water treatment, recycling, and disposal to various industrial customers. ATCO Ltd. was founded in 1947 and is headquartered in Calgary, Canada. ATCO Ltd. is a subsidiary of Sentgraf Enterprises Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ATCO Ltd reported revenue of C$5.1B in FY2025 versus C$4.3B in FY2021, a compound +4.6%/yr. Reported net income was C$150M in FY2025, compounding −11.6%/yr from FY2021.

Growth Quality 59/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
C$5.1B
Latest YoY
+4.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.5%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−6.7% (−9.5 + 2.8)
Revenue +4.6%/yr
FY21 C$4.3B
FY22 C$5.0B
FY23 C$4.7B
FY24 C$4.9B
FY25 C$5.1B
Net income −11.6%/yr
FY21 C$246M
FY22 C$370M
FY23 C$432M
FY24 C$430M
FY25 C$150M
Character of growth · EPS growth decomposed (2014-2025) +1.4 % p.a.
Revenue per share +1.9 %

of which total revenue +1.7 % · buybacks/dilution +0.2 %

EBIT margin −1.7 %
Tax rate +1.5 %
Residual (interest, one-offs) −0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ACO-X screens 51% overvalued. Compare with Iberdrola, S.A →

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Cite: Fair Value Calculator (2026). "ATCO Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ACO-X

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Diversified · 52 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Below median
Fair Value upside −34% · Below median
Return on equity (TTM) 3% · Bottom 25%
Return on assets 2% · Bottom 25%
Net margin (TTM) 3% · Bottom 25%
Operating margin (TTM) 28% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 2.8% · Bottom 25%
Debt / equity 2.80× · Higher than 75% of peers

Valuation Multiples vs Utilities - Diversified median · lower = cheaper

P/E (TTM) 52.4× · Pricier than 75% of peers
P/B 1.27× · Cheaper than median
P/S (TTM) 1.11× · Cheaper than median
P/FCF 25.2× · Pricier than median
EV/EBITDA 8.6× · Pricier than median
PEG 1.14× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 5
FUTURE6 · sector 6
PAST12 · sector 37
HEALTH0 · sector 48
DIVIDEND55 · sector 81

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Iberdrola, S.A IBE €20.28 €8.45 −58%
Enel SpA ENEL €9.42 €4.82 −49%
Engie SA ENGI €24.50 €21.15 −14%
Sempra SRE $84.57 $44.47 −47%
E.ON SE EOAN €17.83 €11.71 −34%
RWE Aktiengesellschaft generates and RWE €59.10 €55.77 −6%
ACWA Power Company 2082 184.00 SAR 24.19 SAR −87%
Brookfield Infrastructure Partners L.P. BIPUN C$54.99 C$34.34 −38%
EnBW Energie Baden-Württemberg AG EBK €68.60 €21.11 −69%
EDP, S.A EDP €4.70 €3.81 −19%

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Frequently asked questions

Is ATCO Ltd (ACO-X) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of C$48.13 versus a price of C$72.78, about −34% upside (overvalued).
What is the fair value of ACO-X?
Our model-based fair value for ATCO Ltd is C$48.13 (as of Aug 21, 2026), built from audited fundamentals. The current price: C$72.78.
What is the quality score of ACO-X?
ATCO Ltd has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ATCO Ltd (ACO-X)?
ATCO Ltd reported trailing-twelve-month revenue of about C$5.2B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of ACO-X?
The net profit margin of ATCO Ltd is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does ATCO Ltd pay a dividend?
ATCO Ltd currently shows a dividend yield of about 2.77% relative to its recent price (as of Aug 21, 2026).
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