ATS CORP (ATS.CA) Stock Fundamental Analysis
TSX:ATS - Toronto Stock Exchange - CA00217Y1043 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to ATS. ATS was compared to 22 industry peers in the Machinery industry. ATS has only an average score on both its financial health and profitability. ATS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATS has reported negative net income.
ATS had a positive operating cash flow in the past year.
Of the past 5 years ATS 4 years were profitable.
ATS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.61%, ATS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
ATS's Return On Equity of -1.64% is fine compared to the rest of the industry. ATS outperforms 68.18% of its industry peers.
ATS has a Return On Invested Capital (1.67%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ATS is below the industry average of 8.29%.
The last Return On Invested Capital (1.67%) for ATS is well below the 3 year average (6.08%), which needs to be investigated, but indicates that ATS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -1.64% | ||
| ROIC | 1.67% |
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
With a Operating Margin value of 2.95%, ATS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
ATS's Operating Margin has declined in the last couple of years.
ATS has a Gross Margin of 25.86%. This is comparable to the rest of the industry: ATS outperforms 50.00% of its industry peers.
ATS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | N/A | ||
| GM | 25.86% |
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.
ATS has less shares outstanding than it did 1 year ago.
ATS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ATS is higher compared to a year ago.
2.2 Solvency
ATS has an Altman-Z score of 1.89. This is not the best score and indicates that ATS is in the grey zone with still 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 59.09% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that ATS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, ATS is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.19
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.69 indicates that ATS should not have too much problems paying its short term obligations.
ATS has a better Current ratio (1.69) than 72.73% of its industry peers.
ATS has a Quick Ratio of 1.41. 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 1.41. This is amongst the best in the industry. ATS outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ATS have decreased strongly by -114.72% in the last year.
Looking at the last year, ATS shows a very negative growth in Revenue. The Revenue has decreased by -16.47% in the last year.
The Revenue has been growing by 12.12% on average over the past years. This is quite good.
EPS 1Y (TTM)-114.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-245.03%
Revenue 1Y (TTM)-16.47%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%-27.45%
3.2 Future
The Earnings Per Share is expected to grow by 30.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, ATS will show a quite strong growth in Revenue. The Revenue will grow by 10.49% on average per year.
EPS Next Y44.43%
EPS Next 2Y30.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.22%
Revenue Next 2Y10.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ATS. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 21.01, which indicates a rather expensive current valuation of ATS.
68.18% of the companies in the same industry are more expensive than ATS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ATS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ATS's earnings are expected to grow with 30.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ATS (7/4/2025, 7:00:00 PM)
44.05
+0.14 (+0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.4%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap4.31B
Analysts76.67
Price Target50.87 (15.48%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.75%
Min Revenue beat(2)-17.1%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-6.26%
Min Revenue beat(4)-17.1%
Max Revenue beat(4)-0.4%
Revenue beat(8)4
Avg Revenue beat(8)-1.24%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)10
Avg Revenue beat(16)1.52%
PT rev (1m)1.79%
PT rev (3m)0.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.01 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 167.41 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.29 |
EPS(TTM)-0.29
EYN/A
EPS(NY)2.1
Fwd EY4.76%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)0.26
OCFY0.6%
SpS25.87
BVpS17.42
TBVpS-4.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -1.64% | ||
| ROCE | 2.13% | ||
| ROIC | 1.67% | ||
| ROICexc | 1.78% | ||
| ROICexgc | 5.13% | ||
| OM | 2.95% | ||
| PM (TTM) | N/A | ||
| GM | 25.86% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-44.72%
ROICexcg 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.34 | ||
| Cap/Depr | 51.11% | ||
| Cap/Sales | 3.08% | ||
| Interest Coverage | 0.78 | ||
| Cash Conversion | 11.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.89 |
F-Score3
WACC8.91%
ROIC/WACC0.19
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)-114.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-245.03%
EPS Next Y44.43%
EPS Next 2Y30.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.47%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%-27.45%
Revenue Next Year13.22%
Revenue Next 2Y10.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-77.8%
EBIT growth 3Y-27.04%
EBIT growth 5Y-9.42%
EBIT Next Year55.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.02%
OCF growth 3Y-50.79%
OCF growth 5Y4.89%