Operating Margin

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Price: 60 CAD Market Closed

Market Cap: CA$6.7B

24.6%

Improving

by 0.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

24.6%

Operating Income

CA$1.3B

Revenue

CA$5.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

24.6%

Operating Income

CA$1.3B

Revenue

CA$5.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CA		Atco Ltd TSX:ACO.X	6.6B CAD	Loading...
UK		National Grid PLC LSE:NG	60.4B GBP	Loading...
FR		Engie SA PAR:ENGI	59.9B EUR	Loading...
US		Sempra Energy NYSE:SRE	56.8B USD	Loading...
DE		E.ON SE XETRA:EOAN	45.4B EUR	Loading...
US	S	Sempra VSE:SREN	43.4B EUR	Loading...
US		Dominion Energy Inc NYSE:D	51.8B USD	Loading...
DE		RWE AG XETRA:RWE	37.9B EUR	Loading...
US		Public Service Enterprise Group Inc NYSE:PEG	39.7B USD	Loading...
US		Consolidated Edison Inc NYSE:ED	37.9B USD	Loading...
DE		E ON SE MIL:EOAN	31.3B EUR	Loading...

Market Distribution

Min	-4 710 029.9%
30th Percentile	-65.8%
Median	-2.4%
70th Percentile	11%
Max	71 100%

Other Profitability Ratios

Atco Ltd
Glance View

Market Cap

6.7B CAD

Industry

Utilities

Atco Ltd., an intriguing player in the infrastructure space, emerged from humble beginnings as a trailer rental business in the Canadian city of Calgary during the 1940s. Over the decades, it deftly transformed itself into a diversified global enterprise, adeptly seizing opportunities across a range of industries. Today, Atco's operations are segmented into structures and logistics, utilities, energy infrastructure, retail energy, and property services, allowing it a balanced mix of revenue streams. This diversity is not just a defensive posture but a strategic advancement that enables the company to thrive through economic gyrations. By maintaining a finger on the pulse of essential services like electricity and natural gas, while exploring innovative technologies, Atco not only sustains its financial robustness but propels forward its ambitious sustainability goals. The mechanisms of Atco's money-making engine are as diverse as its portfolio. Its structures and logistics segment thrives on crafting modular solutions, catering from construction sites to disaster relief efforts, demonstrating adaptability and foresight. Utilities, however, form the bedrock of their revenue, marked by long-term contracts and regulation-guided stability. The energy infrastructure sector further broadens Atco's horizon, with investments in natural gas and electricity generation that pivot towards cleaner energy sources. Meanwhile, the retail energy division targets savvy consumers seeking reliable energy purchases. As Atco occasionally ventures into real estate, particularly through projects in Alberta, it adds another layer of potential growth. This multifaceted approach not only positions Atco as a robust entity across evolving sectors but also as a consistently profitable mainstay in the global marketplace.

View ACO.Y Analysis

ACO.Y Intrinsic Value

Undervaluation 48%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Atco Ltd
TSX:ACO.Y

Peer Comparison

Market Distribution

Other Profitability Ratios

Atco Ltd
Glance View

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Atco Ltd TSX:ACO.Y