- Atco (TSX:ACO.X), a diversified industrial stock, extended its long history of profitability in Q2 2024
- The industrial stock has generated exponential adjusted earnings and dividend growth since the early 1990s, rewarding shareholders with a more than 1,100 per cent return to date
- Atco’s approximately 20,000 employees are dedicated to meeting the world’s energy, housing, security and transportation challenges
- Atco stock has added 18.11 per cent year-over-year, but remains down by 2.94 per cent since 2019, suggesting a price-value dislocation worth a deeper look
Atco (TSX:ACO.X), a diversified industrial stock, extended its long history of profitability in Q2 2024.
The company collected adjusted earnings of C$96 million (C$0.86 per share), up by C$9 million (C$0.09 per share) year-over-year, but down from C$148 million (C$1.32 per share) in Q1 2024.
Earnings attributable to Class I and Class II shareholders in accordance with International Financial Reporting Standards came to C$52 million (C$0.46 per share), down by C$27 million (C$0.24 per share) year-over-year.
Despite short-term volatility in the demand for the company’s macro-sensitive energy, housing, security and transportation services, it has generated exponential adjusted earnings and dividend growth since the early 1990s (slides 4,5), rewarding shareholders with a more than 1,100 per cent return to date.
Atco’s consistent profitability since 2019 – including growing post-pandemic net income from C$246 million in 2021 to C$432 million in 2023 – has been met with a 2.94 per cent loss for investors over the period, suggesting an out-of-favour entry point for this proven industrial stock.
About Atco
Atco‘s approximately 20,000 employees are dedicated to meeting the world’s energy, housing, security and transportation challenges. The company is divided into numerous subsidiaries:
- ATCO Structures designs, builds and delivers housing and shelter-related products.
- ATCO Frontec provides operational support services to government, defence and commercial clients.
- ATCO Energy Systems delivers electricity and natural gas in Canada and internationally.
- ATCO EnPower innovates in the areas of renewables, energy storage, industrial water and alternative fuels.
- ATCO Australia develops, builds, owns and operates energy and infrastructure assets.
- ATCOenergy and Rümi provide retail electricity and natural gas services, home maintenance services and professional home advice.
The company also holds investments in ports and transportation logistics, the processing and marketing of fly ash, retail food services and commercial real estate.
Atco stock (TSX:ACO.X) is up by 0.37 per cent trading at C$43.56 per share as of 12:17 pm ET. The stock has added 18.11 per cent year-over-year, but remains down by 2.94 per cent since 2019.
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(Top photo: Atco)