ATS CORP (ATS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATS - CA00217Y1043 - Common Stock
40.01 CAD
-0.68 (-1.67%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ATS was profitable.
- In the past year ATS had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of -0.10%, ATS belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- ATS's Return On Equity of -0.26% is amongst the best of the industry. ATS outperforms 82.61% of its industry peers.
- ATS has a Return On Invested Capital of 2.30%. This is in the better half of the industry: ATS outperforms 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.
- ATS's Operating Margin has declined in the last couple of years.
- ATS has a Gross Margin (26.18%) which is comparable to the rest of the industry.
- 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 | 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- Compared to 1 year ago, ATS has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.95 indicates that ATS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ATS's Altman-Z score of 1.95 is fine compared to the rest of the industry. ATS outperforms 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.
- ATS has a Debt to FCF ratio of 7.30. This is in the better half of the industry: ATS outperforms 73.91% of its industry peers.
- A Debt/Equity ratio of 0.85 indicates that ATS is somewhat dependend on debt financing.
- ATS has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: ATS outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.3 | ||
| Altman-Z | 1.95 |
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.
- ATS's Current ratio of 1.63 is in line compared to the rest of the industry. ATS outperforms 47.83% of its industry peers.
- A Quick Ratio of 1.34 indicates that ATS should not have too much problems paying its short term obligations.
- The Quick ratio of ATS (1.34) is better than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
- ATS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.44%.
- ATS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.90% yearly.
- Looking at the last year, ATS shows a decrease in Revenue. The Revenue has decreased by -5.58% in the last year.
- ATS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.12% yearly.
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
- The Earnings Per Share is expected to grow by 15.37% on average over the next years. This is quite good.
- 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
- 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
- The Price/Earnings ratio is 25.16, which means the current valuation is very expensive for ATS.
- 78.26% of the companies in the same industry are more expensive than ATS, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. ATS is around the same levels.
- A Price/Forward Earnings ratio of 18.12 indicates a rather expensive valuation of ATS.
- Based on the Price/Forward Earnings ratio, ATS is valued a bit cheaper than 78.26% of the companies in the same industry.
- ATS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
- ATS's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATS indicates a somewhat cheap valuation: ATS is cheaper than 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.66 | ||
| EV/EBITDA | 21.08 |
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 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)3.65
EPS Next 2Y22.14%
EPS Next 3Y15.37%
5. Dividend
5.1 Amount
- ATS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ATS CORP / ATS.CA FAQ
What is the fundamental rating for ATS stock?
ChartMill assigns a fundamental rating of 4 / 10 to ATS.CA.
Can you provide the valuation status for ATS CORP?
ChartMill assigns a valuation rating of 4 / 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 are the PE and PB ratios of ATS CORP (ATS.CA) stock?
The Price/Earnings (PE) ratio for ATS CORP (ATS.CA) is 25.16 and the Price/Book (PB) ratio is 2.22.