ATS CORP (ATS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATS - CA00217Y1043 - Common Stock
37.71 CAD
+1.09 (+2.98%)
We assign a fundamental rating of 4 out of 10 to ATS. ATS was compared to 21 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.
In the past 5 years ATS always reported a positive cash flow from operatings.
1.2 Ratios
ATS has a Return On Assets of -0.10%. This is amongst the best in the industry. ATS outperforms 85.71% of its industry peers.
ATS has a Return On Equity of -0.26%. This is amongst the best in the industry. ATS outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.30%, ATS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATS is below the industry average of 8.09%.
| 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 61.90% 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 in line with 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 | 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
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.
The number of shares outstanding for ATS has been increased compared to 5 years ago.
The debt/assets ratio for ATS is higher compared to a year ago.
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.
ATS has a better Altman-Z score (1.89) than 61.90% 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 66.67% of its industry peers.
ATS has a Debt/Equity ratio of 0.85. This is a neutral value indicating ATS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, ATS is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.3 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.26
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.63 indicates that ATS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.63, ATS perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that ATS should not have too much problems paying its short term obligations.
ATS has a better Quick ratio (1.34) than 85.71% 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%.
The Earnings Per Share has been growing slightly by 6.90% on average over the past years.
ATS shows a decrease in Revenue. In the last year, the revenue decreased by -5.58%.
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.
ATS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.15% yearly.
EPS Next Y19.43%
EPS Next 2Y22.14%
EPS Next 3Y15.37%
EPS Next 5YN/A
Revenue Next Year11.04%
Revenue Next 2Y8.04%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.72, the valuation of ATS can be described as rather expensive.
Based on the Price/Earnings ratio, ATS is valued cheaper than 85.71% of the companies in the same industry.
ATS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.08, 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 somewhat cheap valuation: ATS is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. ATS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 17.08 |
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.
Based on the Price/Free Cash Flow ratio, ATS is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 19.92 |
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.
PEG (NY)1.22
PEG (5Y)3.44
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 | N/A |
TSX:ATS (12/5/2025, 7:00:00 PM)
37.71
+1.09 (+2.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.31%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap3.70B
Revenue(TTM)2.69B
Net Income(TTM)-4.65M
Analysts78.18
Price Target47.5 (25.96%)
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)-0.12%
Min EPS beat(2)-2.83%
Max EPS beat(2)2.59%
EPS beat(4)2
Avg EPS beat(4)1.92%
Min EPS beat(4)-2.83%
Max EPS beat(4)9.34%
EPS beat(8)3
Avg EPS beat(8)-0.45%
EPS beat(12)5
Avg EPS beat(12)2.38%
EPS beat(16)8
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)0.94%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-3.94%
Min Revenue beat(4)-17.23%
Max Revenue beat(4)2.32%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
Revenue beat(12)7
Avg Revenue beat(12)0.25%
Revenue beat(16)9
Avg Revenue beat(16)0.78%
PT rev (1m)0.31%
PT rev (3m)0%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-3.33%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 17.08 | ||
| P/S | 1.37 | ||
| P/FCF | 17.59 | ||
| P/OCF | 12.74 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.92 |
EPS(TTM)1.59
EY4.22%
EPS(NY)2.21
Fwd EY5.85%
FCF(TTM)2.14
FCFY5.69%
OCF(TTM)2.96
OCFY7.85%
SpS27.45
BVpS18.04
TBVpS-3.83
PEG (NY)1.22
PEG (5Y)3.44
Graham Number25.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.1% | ||
| ROE | -0.26% | ||
| ROCE | 2.93% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.44% | ||
| ROICexgc | 7.35% | ||
| OM | 3.7% | ||
| PM (TTM) | N/A | ||
| GM | 26.18% | ||
| FCFM | 7.81% |
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-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.3 | ||
| Debt/EBITDA | 5.95 | ||
| Cap/Depr | 52.39% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | 115.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 1.89 |
F-Score4
WACC8.77%
ROIC/WACC0.26
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)-22.44%
EPS 3Y-11.98%
EPS 5Y6.9%
EPS Q2Q%80%
EPS Next Y19.43%
EPS Next 2Y22.14%
EPS Next 3Y15.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%18.88%
Revenue Next Year11.04%
Revenue Next 2Y8.04%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
EBIT growth 1Y-64.84%
EBIT growth 3Y-27.04%
EBIT growth 5Y-9.42%
EBIT Next Year46.39%
EBIT Next 3Y20.67%
EBIT Next 5YN/A
FCF growth 1Y4012.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y195.31%
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 23.72 and the Price/Book (PB) ratio is 2.09.
How financially healthy is ATS CORP?
The financial health rating of ATS CORP (ATS.CA) is 4 / 10.