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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Atco Ltd (ACO.X-T) is a relatively unknown utility business in the Far North that pays a 5% dividend, but doesn't see much growth compared to its peers. It is under pressure due to its heavy reliance on utilities, particularly Canadian Utilities, and is interest sensitive. Insider buying and a 5.42% yield make it an attractive investment. However, there are concerns about the wider market and potential negative signals. It has triggered its stop at $40, resulting in a net investment loss of 6%. Despite trading close to its book value, it is also close to its all-time low in valuation.

Consensus
Mixed
Valuation
Fair Value
Similar
Fortis, FTS.TO
DON'T BUY
Atco Ltd

A nice dividend player, though little known for its utility business in the Far North. Over the past year, they've returned only 0.5% compounded annualized. It pays a 5% dividend, but it doesn't grow much compared to peers.  Does not return enough capital for him. Are better utilities.

mngmnt / diversified
TOP PICK
Atco Ltd

Under pressure, as it's comprised mainly of utilities. Owns 53% of Canadian Utilities, representing 80% of earnings. Interest sensitive. Also involved in real estate and infrastructure rentals. Housing, logistics, emergency shelter. Insider buying. Yield is 5.42%.

(Analysts’ price target is $47.86)
mngmnt / diversified
DON'T BUY
Atco Ltd

He targets this where the stock price is now. But he sees a negative signal in the wider market, so this could fall $5 to $30. How far can interest rates rise (he expects them to) in the next 6-12 months?

mngmnt / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
Atco Ltd
(A Top Pick Feb 21/23, Down 7.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ACO.X has triggered its stop at $40.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 6%, when combined with the previous buy recommendation.  

mngmnt / diversified
PAST TOP PICK
Atco Ltd
(A Top Pick Apr 04/22, Up 8%)

It is trading close to its Book Value but pretty close to its all time low in valuation.

mngmnt / diversified
PAST TOP PICK
Atco Ltd

(A Top Pick May 20/22, Down 7%)

Has 20 years of dividend increases. But rising interest rates are competition for dividend-paying utilities. That said, long term this is a good company.

mngmnt / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Atco Ltd
Stockchase Research Editor: Michael O’Reilly

We again reiterate this Canadian infrastructure utility, who just acquired a sizeable portfolio of wind and solar assets in Alberta and Ontario as a TOP PICK.  They inked a 15 year renewable energy deal with Microsoft. It trades at 1.2x book and at 12x earnings. We like that cash reserves are growing while paying down debt and buying shares.  It has a good dividend, backed by a payout ratio under 55% of cash flow. We recommend maintaining the trailing the stop at $40, looking to achieve $50 -- upside over 16%. Yield 4.2%

(Analysts’ price target is $49.81)
mngmnt / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Atco Ltd
Stockchase Research Editor: Michael O'Reilly WE reiterate this Canadian infrastructure utility as a TOP PICK. It has entered into an agreement with CP to provide construction services for two hydrogen production and refueling facilities in Alberta. It trades at 1.1x book and at 12x earnings. It has a good dividend, which has grown by 7% annually over the past five years. We recommend trailing up the stop-loss (From $38) to $40, looking to achieve $49 -- upside over 17%. Yield 4.4% (Analysts’ price target is $49.00)
mngmnt / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Atco Ltd
Stockchase Research Editor: Michael O'Reilly This TOP PICK is a top performing Canadian infrastructure utility. It has entered into an agreement with CP to provide construction services for two hydrogen production and refueling facilities in Alberta. It trades at 1.1x book and at 13x earnings. It has a good dividend, which has grown by 7% annually over the past five years. We recommend placing a stop loss at $38, looking to achieve $51 -- upside over 18%. Yield 4.26% (Analysts’ price target is $50.56)
mngmnt / diversified
WEAK BUY
Atco Ltd
Boring company, but outperformed the market this year. Decent yield, not high growth. Decent player over time. He'd prefer pure utility stocks, like CU. OK at this time.
mngmnt / diversified
TOP PICK
Atco Ltd
Believes company is a good defensive position. 29 years of dividend increases. Well managed company that is moving into renewable space. Stock price has outperformed other sectors of economy. Under followed company. Good price to buy.
mngmnt / diversified
TOP PICK
Atco Ltd
This is a cheaper way into Canadian utilities. It is very close to its long term low which is its book value. Has a slightly smaller dividend yield. It puts some defensiveness in your portfolio. Hold for the long term. Buy 4 Hold 2 Sell 1
mngmnt / diversified
BUY
Atco Ltd

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Has $9B in net debt against $1.4B in cash flow. Payout ratio is very good at only 14%. Profit margins are also positive.The company generates positive free cash flow, with a nice dividend of 4.3%. A solid income stock. Unlock Premium - Try 5i Free

mngmnt / diversified
DON'T BUY
Atco Ltd
No growth in this company and does not own anymore. If rate base doesn't grow, profitability and dividend won't grow. Growth rate not offsetting inflation. Not a good company to own.
mngmnt / diversified
BUY
Atco Ltd

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company pays a solid and secure dividend. The valuation is low and it is stable. 5i would be comfortable owning this today. Unlock Premium - Try 5i Free

mngmnt / diversified
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Atco Ltd(ACO.X-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 3

Stockchase rating for Atco Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Atco Ltd(ACO.X-T) Frequently Asked Questions

What is Atco Ltd stock symbol?

Atco Ltd is a Canadian stock, trading under the symbol ACO.X-T on the Toronto Stock Exchange (ACO.X-CT). It is usually referred to as TSX:ACO.X or ACO.X-T

Is Atco Ltd a buy or a sell?

In the last year, 3 stock analysts published opinions about ACO.X-T. 1 analyst recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Atco Ltd.

Is Atco Ltd a good investment or a top pick?

Atco Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Atco Ltd.

Why is Atco Ltd stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Atco Ltd worth watching?

3 stock analysts on Stockchase covered Atco Ltd In the last year. It is a trending stock that is worth watching.

What is Atco Ltd stock price?

On 2024-06-19, Atco Ltd (ACO.X-T) stock closed at a price of $38.65.