ATS CORP (ATS.CA) Stock Fundamental Analysis
TSX:ATS - Toronto Stock Exchange - CA00217Y1043 - Common Stock - Currency: CAD
Overall ATS gets a fundamental rating of 4 out of 10. We evaluated ATS against 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ATS was profitable.
In the past year ATS has reported a negative cash flow from operations.
In the past 5 years ATS has always been profitable.
Each year in the past 5 years ATS had a positive operating cash flow.
1.2 Ratios
ATS's Return On Assets of 1.91% is fine compared to the rest of the industry. ATS outperforms 76.19% of its industry peers.
With a decent Return On Equity value of 5.09%, ATS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
The Return On Invested Capital of ATS (5.46%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATS is below the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 5.09% | ||
| ROIC | 5.46% |
ROA(3y)4.1%
ROA(5y)3.55%
ROE(3y)11.76%
ROE(5y)9.71%
ROIC(3y)7.85%
ROIC(5y)7.1%
1.3 Margins
ATS's Profit Margin of 3.25% is fine compared to the rest of the industry. ATS outperforms 76.19% of its industry peers.
ATS's Profit Margin has improved in the last couple of years.
ATS has a better Operating Margin (8.98%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of ATS has grown nicely.
With a Gross Margin value of 29.64%, ATS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of ATS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | 3.25% | ||
| GM | 29.64% |
OM growth 3Y10.39%
OM growth 5Y3.89%
PM growth 3Y12.53%
PM growth 5Y2.52%
GM growth 3Y2.82%
GM growth 5Y1.64%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ATS has more shares outstanding
The debt/assets ratio for ATS has been reduced compared to a year ago.
2.2 Solvency
ATS has an Altman-Z score of 2.07. 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.
With a decent Altman-Z score value of 2.07, ATS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ATS has a Debt/Equity ratio of 0.98. This is a neutral value indicating ATS is somewhat dependend on debt financing.
The Debt to Equity ratio of ATS (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.59
WACC9.3%
2.3 Liquidity
ATS has a Current Ratio of 1.92. 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 better Current ratio (1.92) than 66.67% of its industry peers.
ATS has a Quick Ratio of 1.58. 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 better Quick ratio (1.58) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for ATS have decreased strongly by -35.99% in the last year.
ATS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.73% yearly.
ATS shows a decrease in Revenue. In the last year, the revenue decreased by -7.46%.
Measured over the past years, ATS shows a quite strong growth in Revenue. The Revenue has been growing by 19.33% on average per year.
EPS 1Y (TTM)-35.99%
EPS 3Y34.78%
EPS 5Y21.73%
EPS Q2Q%-49.48%
Revenue 1Y (TTM)-7.46%
Revenue growth 3Y28.48%
Revenue growth 5Y19.33%
Sales Q2Q%-11.52%
3.2 Future
ATS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.99% yearly.
Based on estimates for the next years, ATS will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y-44.6%
EPS Next 2Y-10.55%
EPS Next 3Y-1.99%
EPS Next 5YN/A
Revenue Next Year-10.73%
Revenue Next 2Y0.53%
Revenue Next 3Y2.91%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
ATS is valuated rather expensively with a Price/Earnings ratio of 23.69.
Based on the Price/Earnings ratio, ATS is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
ATS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 19.55, the valuation of ATS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ATS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATS to the average of the S&P500 Index (22.70), we can say ATS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 19.55 |
4.2 Price Multiples
ATS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
ATS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-10.55%
EPS Next 3Y-1.99%
5. Dividend
5.1 Amount
No dividends for ATS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ATS (2/21/2025, 7:00:00 PM)
40.99
-0.3 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.54%
Inst Owner ChangeN/A
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap4.01B
Analysts78.18
Price Target50.85 (24.05%)
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)-10.57%
Min EPS beat(2)-22.3%
Max EPS beat(2)1.16%
EPS beat(4)2
Avg EPS beat(4)-2.23%
Min EPS beat(4)-22.3%
Max EPS beat(4)16.48%
EPS beat(8)4
Avg EPS beat(8)3.18%
EPS beat(12)6
Avg EPS beat(12)5.18%
EPS beat(16)10
Avg EPS beat(16)11.92%
Revenue beat(2)1
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-5.85%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-5.85%
Max Revenue beat(4)8.66%
Revenue beat(8)6
Avg Revenue beat(8)2.26%
Revenue beat(12)8
Avg Revenue beat(12)1.93%
Revenue beat(16)12
Avg Revenue beat(16)2.98%
PT rev (1m)1.16%
PT rev (3m)0.58%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)-35.9%
EPS NY rev (1m)-15.05%
EPS NY rev (3m)-26.11%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-10.22%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-6.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 19.55 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.79 |
EPS(TTM)1.73
EY4.22%
EPS(NY)2.1
Fwd EY5.11%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)-0.04
OCFYN/A
SpS28.09
BVpS17.9
TBVpS-3.79
PEG (NY)N/A
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 5.09% | ||
| ROCE | 6.89% | ||
| ROIC | 5.46% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 16.29% | ||
| OM | 8.98% | ||
| PM (TTM) | 3.25% | ||
| GM | 29.64% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)3.55%
ROE(3y)11.76%
ROE(5y)9.71%
ROIC(3y)7.85%
ROIC(5y)7.1%
ROICexc(3y)8.35%
ROICexc(5y)7.9%
ROICexgc(3y)29.75%
ROICexgc(5y)26.65%
ROCE(3y)9.91%
ROCE(5y)8.97%
ROICexcg growth 3Y6.21%
ROICexcg growth 5Y-6.28%
ROICexc growth 3Y10.14%
ROICexc growth 5Y0.41%
OM growth 3Y10.39%
OM growth 5Y3.89%
PM growth 3Y12.53%
PM growth 5Y2.52%
GM growth 3Y2.82%
GM growth 5Y1.64%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 49.76% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 3.23 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 2.07 |
F-Score4
WACC9.3%
ROIC/WACC0.59
Cap/Depr(3y)57.61%
Cap/Depr(5y)59.33%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.99%
EPS 3Y34.78%
EPS 5Y21.73%
EPS Q2Q%-49.48%
EPS Next Y-44.6%
EPS Next 2Y-10.55%
EPS Next 3Y-1.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.46%
Revenue growth 3Y28.48%
Revenue growth 5Y19.33%
Sales Q2Q%-11.52%
Revenue Next Year-10.73%
Revenue Next 2Y0.53%
Revenue Next 3Y2.91%
Revenue Next 5YN/A
EBIT growth 1Y-22.14%
EBIT growth 3Y41.83%
EBIT growth 5Y23.97%
EBIT Next Year-5.53%
EBIT Next 3Y8.43%
EBIT Next 5YN/A
FCF growth 1Y-697.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-105.21%
OCF growth 3Y-51.77%
OCF growth 5Y-30.44%