ATS CORP (ATS.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:ATS - CA00217Y1043 - Common Stock

40.01 CAD

-0.68 (-1.67%)

Last: 1/26/2026, 7:00:00 PM

Fundamental Rating

Taking everything into account, ATS scores 4 out of 10 in our fundamental rating. ATS was compared to 23 industry peers in the Machinery industry. ATS has an average financial health and profitability rating. ATS has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

ATS had positive earnings in the past year.
ATS had a positive operating cash flow in the past year.
Of the past 5 years ATS 4 years were profitable.
Each year in the past 5 years ATS had a positive operating cash flow.

1.2 Ratios

ATS's Return On Assets of -0.10% is amongst the best of the industry. ATS outperforms 82.61% of its industry peers.
ATS has a better Return On Equity (-0.26%) than 82.61% of its industry peers.
The Return On Invested Capital of ATS (2.30%) is better than 65.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATS is in line with the industry average of 6.48%.

		Industry Rank	Sector Rank
ROA	-0.1%
ROE	-0.26%
ROIC	2.3%

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

ATS's Operating Margin of 3.70% is fine compared to the rest of the industry. ATS outperforms 69.57% of its industry peers.
In the last couple of years the Operating Margin of ATS has declined.
ATS has a Gross Margin (26.18%) which is comparable to the rest of the industry.
ATS's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	3.7%
PM (TTM)	N/A
GM	26.18%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ATS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ATS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ATS has been increased compared to 5 years ago.
Compared to 1 year ago, ATS has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.94 indicates that ATS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ATS has a better Altman-Z score (1.94) than 60.87% of its industry peers.
The Debt to FCF ratio of ATS is 7.30, which is on the high side as it means it would take ATS, 7.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ATS (7.30) is better than 73.91% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that ATS is somewhat dependend on debt financing.
The Debt to Equity ratio of ATS (0.85) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.85
Debt/FCF	7.3
Altman-Z	1.94

ROIC/WACC0.26

WACC8.92%

2.3 Liquidity

ATS has a Current Ratio of 1.63. This is a normal value and indicates that ATS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ATS (1.63) is comparable to the rest of the industry.
ATS has a Quick Ratio of 1.34. This is a normal value and indicates that ATS is financially healthy and should not expect problems in meeting its short term obligations.
ATS has a Quick ratio of 1.34. This is in the better half of the industry: ATS outperforms 78.26% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.63
Quick Ratio	1.34

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ATS have decreased strongly by -22.44% in the last year.
The Earnings Per Share has been growing slightly by 6.90% on average over the past years.
Looking at the last year, ATS shows a decrease in Revenue. The Revenue has decreased by -5.58% in the last year.
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)-22.44%

EPS 3Y-11.98%

EPS 5Y6.9%

EPS Q2Q%80%

Revenue 1Y (TTM)-5.58%

Revenue growth 3Y5.09%

Revenue growth 5Y12.12%

Sales Q2Q%18.88%

3.2 Future

ATS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.37% yearly.
Based on estimates for the next years, ATS will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.

EPS Next Y19.43%

EPS Next 2Y22.14%

EPS Next 3Y15.37%

EPS Next 5YN/A

Revenue Next Year10.85%

Revenue Next 2Y7.95%

Revenue Next 3Y7.15%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.16, ATS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ATS is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.25. ATS is around the same levels.
The Price/Forward Earnings ratio is 18.12, which indicates a rather expensive current valuation of ATS.
Based on the Price/Forward Earnings ratio, ATS is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ATS is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	25.16
Fwd PE	18.12

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATS is on the same level as its industry peers.
73.91% 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	18.66
EV/EBITDA	20.82

4.3 Compensation for Growth

The 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 15.37% in the coming years. This may justify a more expensive valuation.