ATS CORP (ATS.CA) Stock Fundamental Analysis

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

40.69 CAD

+0.26 (+0.64%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to ATS. ATS was compared to 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.

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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.
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

The Return On Assets of ATS (-0.10%) is better than 81.82% of its industry peers.
The Return On Equity of ATS (-0.26%) is better than 81.82% of its industry peers.
The Return On Invested Capital of ATS (2.30%) is better than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATS is in line with the industry average of 6.71%.

		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 has a better Operating Margin (3.70%) than 63.64% of its industry peers.
ATS's Operating Margin has declined in the last couple of years.
The Gross Margin of ATS (26.18%) 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATS is destroying value.
Compared to 1 year ago, ATS has less shares outstanding
Compared to 5 years ago, ATS has more shares outstanding
The debt/assets ratio for ATS is higher compared to a year ago.

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.
With a decent Altman-Z score value of 1.95, ATS is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ATS has a debt to FCF ratio of 7.30. This is a slightly negative value and a sign of low solvency as ATS would need 7.30 years to pay back of all of its debts.
ATS's Debt to FCF ratio of 7.30 is fine compared to the rest of the industry. ATS outperforms 72.73% 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	1.95

ROIC/WACC0.25

WACC9.04%

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.
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 81.82% 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.
ATS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.90% yearly.
ATS shows a decrease in Revenue. In the last year, the revenue decreased by -5.58%.
The Revenue has been growing by 12.12% on average over the past years. This is quite good.

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

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

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.59, which means the current valuation is very expensive for ATS.
Based on the Price/Earnings ratio, ATS is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATS to the average of the S&P500 Index (27.21), we can say ATS is valued inline with the index average.
The Price/Forward Earnings ratio is 18.43, which indicates a rather expensive current valuation of ATS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATS indicates a rather cheap valuation: ATS is cheaper than 81.82% of the companies listed in the same industry.
ATS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	25.59
Fwd PE	18.43

4.2 Price Multiples

ATS's Enterprise Value to EBITDA ratio is in line with the industry average.
ATS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ATS is cheaper than 72.73% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.98
EV/EBITDA	20.98

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ATS's earnings are expected to grow with 15.37% in the coming years.