ATCO - Atlas Corporation: Unrivalled Cash Flow Visibility

• Atlas Corporation is firing on all cylinders and is arguably in the strongest position it has ever been. Yet the share price is still ~40% below September 2013 levels.
• The revenue backlog has increased by more than threefold since 2017 to $16.2bn, with an average remaining charter term of 7.2 years. This means guaranteed profits for years to come.
• Despite the containership market hovering around all-time highs, investors fear a downturn due to an increasing orderbook, and this is keeping a lid on the share price.
• However, even if the market eventually declines, this is not so relevant for Atlas anymore, since the company has already capitalized on the strong containership market in the best possible way.
• All newbuildings come with long-term contracts attached and more than 50% of the operating fleet has already been forward fixed on long term contracts. As such, the downside is very limited.

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