ATS CORP (ATS.CA) Stock Fundamental Analysis
Canada - TSX:ATS - CA00217Y1043 - Common Stock
37.7 CAD
-2.14 (-5.37%)
Overall ATS gets a fundamental rating of 4 out of 10. We evaluated ATS against 22 industry peers in the Machinery industry. Both the profitability and the financial health of ATS get a neutral evaluation. Nothing too spectacular is happening here. ATS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATS was profitable.
ATS had a positive operating cash flow in the past year.
ATS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ATS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.89%, ATS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
ATS has a Return On Equity of -2.30%. This is in the better half of the industry: ATS outperforms 77.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.59%, ATS is in line with its industry, outperforming 54.55% of the companies in the same industry.
ATS had an Average Return On Invested Capital over the past 3 years of 6.08%. This is in line with the industry average of 6.45%.
The 3 year average ROIC (6.08%) for ATS is well above the current ROIC(1.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.3% | ||
| ROIC | 1.59% |
ROA(3y)2.58%
ROA(5y)2.92%
ROE(3y)7.06%
ROE(5y)8.16%
ROIC(3y)6.08%
ROIC(5y)6.21%
1.3 Margins
The Operating Margin of ATS (2.62%) is comparable to the rest of the industry.
ATS's Operating Margin has declined in the last couple of years.
ATS has a Gross Margin of 25.92%. This is comparable to the rest of the industry: ATS outperforms 54.55% of its industry peers.
In the last couple of years the Gross Margin of ATS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | 25.92% |
OM growth 3Y-30.58%
OM growth 5Y-19.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATS is destroying value.
The number of shares outstanding for ATS has been reduced compared to 1 year ago.
The number of shares outstanding for ATS has been increased compared to 5 years ago.
ATS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that ATS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.89, ATS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of ATS is 10.97, which is on the high side as it means it would take ATS, 10.97 years of fcf income to pay off all of its debts.
ATS has a Debt to FCF ratio of 10.97. This is in the better half of the industry: ATS outperforms 63.64% of its industry peers.
ATS has a Debt/Equity ratio of 0.87. This is a neutral value indicating ATS is somewhat dependend on debt financing.
ATS has a Debt to Equity ratio of 0.87. This is comparable to the rest of the industry: ATS outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 10.97 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.18
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.62 indicates that ATS should not have too much problems paying its short term obligations.
ATS has a Current ratio (1.62) which is in line with its industry peers.
ATS has a Quick Ratio of 1.32. This is a normal value and indicates that ATS is financially healthy and should not expect problems in meeting its short term obligations.
ATS's Quick ratio of 1.32 is amongst the best of the industry. ATS outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for ATS have decreased strongly by -42.80% in the last year.
Measured over the past 5 years, ATS shows a small growth in Earnings Per Share. The EPS has been growing by 6.90% on average per year.
ATS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.38%.
Measured over the past years, ATS shows a quite strong growth in Revenue. The Revenue has been growing by 12.12% on average per year.
EPS 1Y (TTM)-42.8%
EPS 3Y-11.98%
EPS 5Y6.9%
EPS Q2Q%-18%
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%6.11%
3.2 Future
Based on estimates for the next years, ATS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.85% on average per year.
The Revenue is expected to grow by 8.34% on average over the next years. This is quite good.
EPS Next Y26.25%
EPS Next 2Y26.05%
EPS Next 3Y20.85%
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ATS is valuated quite expensively with a Price/Earnings ratio of 27.12.
Based on the Price/Earnings ratio, ATS is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.83. ATS is around the same levels.
The Price/Forward Earnings ratio is 16.03, which indicates a correct valuation of ATS.
Based on the Price/Forward Earnings ratio, ATS is valued a bit cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ATS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATS.
77.27% of the companies in the same industry are more expensive than ATS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.63 | ||
| EV/EBITDA | 23.75 |
4.3 Compensation for Growth
ATS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATS's earnings are expected to grow with 20.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)3.93
EPS Next 2Y26.05%
EPS Next 3Y20.85%
5. Dividend
5.1 Amount
ATS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ATS (11/7/2025, 7:00:00 PM)
37.7
-2.14 (-5.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap3.69B
Revenue(TTM)2.58B
Net Income(TTM)-39.21M
Analysts76.36
Price Target47.36 (25.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.26%
Min EPS beat(2)-2.83%
Max EPS beat(2)9.34%
EPS beat(4)1
Avg EPS beat(4)-4.31%
Min EPS beat(4)-22.3%
Max EPS beat(4)9.34%
EPS beat(8)2
Avg EPS beat(8)-1.09%
EPS beat(12)4
Avg EPS beat(12)1.58%
EPS beat(16)8
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)-7.46%
Min Revenue beat(2)-17.23%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-5.29%
Min Revenue beat(4)-17.23%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)-1.39%
Revenue beat(12)7
Avg Revenue beat(12)0.01%
Revenue beat(16)10
Avg Revenue beat(16)1.04%
PT rev (1m)0%
PT rev (3m)-0.75%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 16.03 | ||
| P/S | 1.43 | ||
| P/FCF | 26.63 | ||
| P/OCF | 17 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.75 |
EPS(TTM)1.39
EY3.69%
EPS(NY)2.35
Fwd EY6.24%
FCF(TTM)1.42
FCFY3.76%
OCF(TTM)2.22
OCFY5.88%
SpS26.33
BVpS17.45
TBVpS-4.19
PEG (NY)1.03
PEG (5Y)3.93
Graham Number23.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.3% | ||
| ROCE | 2.02% | ||
| ROIC | 1.59% | ||
| ROICexc | 1.68% | ||
| ROICexgc | 5.11% | ||
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | 25.92% | ||
| FCFM | 5.38% |
ROA(3y)2.58%
ROA(5y)2.92%
ROE(3y)7.06%
ROE(5y)8.16%
ROIC(3y)6.08%
ROIC(5y)6.21%
ROICexc(3y)6.47%
ROICexc(5y)6.7%
ROICexgc(3y)21.12%
ROICexgc(5y)23.22%
ROCE(3y)7.75%
ROCE(5y)7.9%
ROICexgc growth 3Y-44.72%
ROICexgc growth 5Y-24.75%
ROICexc growth 3Y-37.32%
ROICexc growth 5Y-25.02%
OM growth 3Y-30.58%
OM growth 5Y-19.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y0.22%
F-Score3
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 10.97 | ||
| Debt/EBITDA | 6.75 | ||
| Cap/Depr | 51.43% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 0.73 | ||
| Cash Conversion | 98.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.89 |
F-Score3
WACC8.82%
ROIC/WACC0.18
Cap/Depr(3y)59.25%
Cap/Depr(5y)53.7%
Cap/Sales(3y)3.04%
Cap/Sales(5y)2.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.8%
EPS 3Y-11.98%
EPS 5Y6.9%
EPS Q2Q%-18%
EPS Next Y26.25%
EPS Next 2Y26.05%
EPS Next 3Y20.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%6.11%
Revenue Next Year11.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.34%
Revenue Next 5YN/A
EBIT growth 1Y-79.35%
EBIT growth 3Y-27.04%
EBIT growth 5Y-9.42%
EBIT Next Year46.56%
EBIT Next 3Y21.47%
EBIT Next 5YN/A
FCF growth 1Y452.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y319.6%
OCF growth 3Y-50.79%
OCF growth 5Y4.89%
ATS CORP / ATS.CA FAQ
What is the fundamental rating for ATS stock?
ChartMill assigns a fundamental rating of 4 / 10 to ATS.CA.
What is the valuation status of ATS CORP (ATS.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to ATS CORP (ATS.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for ATS CORP?
ATS CORP (ATS.CA) has a profitability rating of 5 / 10.
What is the valuation of ATS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ATS CORP (ATS.CA) is 27.12 and the Price/Book (PB) ratio is 2.16.
How financially healthy is ATS CORP?
The financial health rating of ATS CORP (ATS.CA) is 4 / 10.