Atlantic Power (NYSE:AT) continues to gain

Atlantic Power Working Capital is comparatively stable at the moment as compared to the past year. Atlantic Power reported Working Capital of 26.82 Million in 2020. Current Ratio is likely to gain to 1.19 in 2021, whereas Asset Turnover is likely to drop 0.28 in 2021. As many baby boomers are still indifferent towards utilities space, it makes sense to review Atlantic Power. We will analyze why Atlantic Power investors may still consider a stake in the business. Here I will also review some basic indicators that Atlantic Power investors should consider in February.
Published over a year ago
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Reviewed by Vlad Skutelnik

Atlantic Power is overvalued at 2.50 per share with modest projections ahead. On a scale of 0 to 100, Atlantic Power holds a performance score of 9. The firm shows a Beta (market volatility) of -0.2623, which signifies not very significant fluctuations relative to the market. Let's try to break down what Atlantic's beta means in this case. As returns on the market increase, returns on owning Atlantic Power are expected to decrease at a much lower rate. During the bear market, Atlantic Power is likely to outperform the market. Although it is vital to follow Atlantic Power historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-one technical indicators for Atlantic Power, which you can use to evaluate the performance of the firm. Please makes use of Atlantic Power information ratio, as well as the relationship between the value at risk and expected short fall to make a quick decision on whether Atlantic Power price patterns will revert.

How important is Atlantic Power's Liquidity

Atlantic Power financial leverage refers to using borrowed capital as a funding source to finance Atlantic Power ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Atlantic Power financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Atlantic Power's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Atlantic Power's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Atlantic Power's total debt and its cash.

Detailed Perspective On Atlantic Power

Atlantic Power holds a total of eighty-nine million two hundred twenty thousand outstanding shares. Over half of Atlantic Power outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Atlantic Power. Please watch out for any change in the institutional holdings of Atlantic Power as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
 2018 2019 2020 2021 (projected)
Revenues USD282.3 M281.6 M323.84 M361.63 M
Revenues282.3 M281.6 M323.84 M361.63 M

Ownership Breakdown

Retail Investors
38.54%
Institutions
57.35%
Retail Investors38.54
Insiders4.11
Institutions57.35

Another 3 percent gain for Atlantic Power

Sortino ratio is down to 0.25. It may call for a possible volatility drop. As of the 17th of January 2021, Atlantic Power shows the Mean Deviation of 2.24, risk adjusted performance of 0.1367, and Downside Deviation of 2.1. Atlantic Power technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Atlantic Power, which can be compared to its rivals. Please confirm Atlantic Power information ratio, as well as the relationship between the value at risk and expected short fall to decide if Atlantic Power is priced correctly, providing market reflects its regular price of 2.92 per share. Please also double-check Atlantic Power total risk alpha, which is currently at (0.048768) to validate the company can sustain itself at a future point.

Our Conclusion on Atlantic Power

Whereas some firms under the utilities—independent power producers industry are still a bit expensive, Atlantic Power may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Atlantic as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Atlantic Power.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Atlantic Power. Please refer to our Terms of Use for any information regarding our disclosure principles.

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