ATCO Ltd

I am reviewing this stock today (TSX-ACO.X) as it is a stock I follow. This is also a dividend paying stock that is on everyone’s list. This stock is on the Dividend Achievers list at www.dividendachievers.com, the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and also on Mike Higgs’ list at www.dividendgrowth.org/Report.htm. Today I will review how this stock has done in the past.

All my following figures are for the year ending at the last annual statement of December 2007 as the report for 2008 is not yet out. First, what I find good about this stock. The Earnings per Share (EPS) growth for the last 5 and 10 years was 9.5% and 12%. The Dividend growth for the last 5 and 10 years is not bad at 8.7% and 11.7%. The Closing Price growth for the last 5 and 10 years was 23% and 15%. The Cash Flow growth for the last 5 and 10 years was 18% and 8%. The Book Value growth for the last 5 and 10 years was 9% and 10%.

The Liquidity is very good at 2.59; however, the Asset/Liability Ratio is low at 1.24. It is desirable that both these ratios be 1.50 or higher. The Return on Equity (ROE) for 2007 and the average for the last 5 years is 16% and this is a good figure. The total accrual figure of Accrual Ratio at 1.56% is not bad.

The main problem I see with stock is the last of revenue growth. The 5 year average of -1.91% is awful, and the 10 year figure of 3.5% is not very good either. Tomorrow, I will review the latest quarterly report and look what stock analysts are saying about this stock.

ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. ATCO has a 52% stake in Canadian Utilities Ltd. The company utilizes a dual share structure and it is effectively controlled by R.D. Southern. Its web site is www.atco.com. See my spreadsheet on this company at www.spbrunner.com/stocks/aco.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.