ATCO Ltd. provides a range of utilities and infrastructure solutions across housing, logistics, and energy sectors in Canada and Australia. The company boasts strong gross (59.5%) and EBITDA margins (43.0%), indicating efficient operations; however, its low return on equity (1.9%) and return on assets (0.3%) raise concerns about profitability. Additionally, a high debt-to-equity ratio (2.73) suggests significant leverage, which could pose risks in a rising interest rate environment. Overall, while ATCO shows operational strength, its financial health and profitability metrics warrant caution.
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Gross profit margin declined from 62.1% to 26.2% year-over-year, suggesting pricing pressure or rising input costs are squeezing profitability.
Debt of $13.0B is 20.8x the company's cash position of $625.0M.
Excellent operating cash flow margin of 49.3% indicates high-quality earnings.
Operating cash flow of $2622.0M exceeds net income by 1341%, indicating high-quality earnings with strong cash conversion.
Strong liquidity position with current ratio of 2.0x.
Free cash flow grew 11.6% YoY, providing more resources for growth and returns.
Strong free cash flow margin of 49.3% provides substantial resources for dividends, buybacks, or reinvestment.
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Based on 2026-Q2 (June 30, 2026)