ATS AUTOMATION TOOLING SYS (ATA.CA) Fundamental Analysis & Valuation

TSX:ATA • CA0019401052

Current stock price

50.23 CAD
-1.12 (-2.18%)
Last:

This ATA.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ATA.CA Profitability Analysis

1.1 Basic Checks

  • In the past year ATA was profitable.
  • In the past year ATA had a positive cash flow from operations.
ATA.CA Yearly Net Income VS EBIT VS OCF VS FCFATA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.05%, ATA belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
  • ATA has a better Return On Equity (13.29%) than 96.77% of its industry peers.
  • ATA's Return On Invested Capital of 7.28% is amongst the best of the industry. ATA outperforms 100.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ATA is significantly above the industry average of 6.48%.
  • The 3 year average ROIC (24.96%) for ATA is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.05%
ROE 13.29%
ROIC 7.28%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.96%
ROIC(5y)N/A
ATA.CA Yearly ROA, ROE, ROICATA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • ATA's Profit Margin of 5.68% is amongst the best of the industry. ATA outperforms 93.55% of its industry peers.
  • In the last couple of years the Profit Margin of ATA has grown nicely.
  • With an excellent Operating Margin value of 9.35%, ATA belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ATA has grown nicely.
  • ATA has a better Gross Margin (28.27%) than 74.19% of its industry peers.
  • ATA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.35%
PM (TTM) 5.68%
GM 28.27%
OM growth 3Y-1.34%
OM growth 5Y4.33%
PM growth 3Y-0.29%
PM growth 5Y10.07%
GM growth 3Y2.37%
GM growth 5Y2.56%
ATA.CA Yearly Profit, Operating, Gross MarginsATA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. ATA.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ATA is creating value.
  • The number of shares outstanding for ATA has been increased compared to 1 year ago.
  • ATA has a worse debt/assets ratio than last year.
ATA.CA Yearly Shares OutstandingATA.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M
ATA.CA Yearly Total Debt VS Total AssetsATA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

2.2 Solvency

  • ATA has an Altman-Z score of 2.50. This is not the best score and indicates that ATA is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ATA's Altman-Z score of 2.50 is fine compared to the rest of the industry. ATA outperforms 74.19% of its industry peers.
  • ATA has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
  • ATA has a worse Debt to Equity ratio (1.23) than 61.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 2.5
ROIC/WACC0.85
WACC8.59%
ATA.CA Yearly LT Debt VS Equity VS FCFATA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • ATA has a Current Ratio of 1.49. This is a normal value and indicates that ATA is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of ATA (1.49) is worse than 83.87% of its industry peers.
  • A Quick Ratio of 1.23 indicates that ATA should not have too much problems paying its short term obligations.
  • ATA has a Quick ratio of 1.23. This is in the better half of the industry: ATA outperforms 61.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.23
ATA.CA Yearly Current Assets VS Current LiabilitesATA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ATA.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 39.39% over the past year.
  • ATA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.65% yearly.
  • Looking at the last year, ATA shows a very strong growth in Revenue. The Revenue has grown by 30.36%.
  • ATA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.64% yearly.
EPS 1Y (TTM)39.39%
EPS 3Y30.34%
EPS 5Y30.65%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)30.36%
Revenue growth 3Y20.3%
Revenue growth 5Y16.64%
Sales Q2Q%12.8%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.52% on average over the next years. This is quite good.
  • Based on estimates for the next years, ATA will show a small growth in Revenue. The Revenue will grow by 6.74% on average per year.
EPS Next Y14.34%
EPS Next 2Y14.43%
EPS Next 3Y13%
EPS Next 5Y12.52%
Revenue Next Year19.18%
Revenue Next 2Y12.71%
Revenue Next 3Y10.29%
Revenue Next 5Y6.74%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
ATA.CA Yearly Revenue VS EstimatesATA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
ATA.CA Yearly EPS VS EstimatesATA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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4

4. ATA.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • ATA is valuated rather expensively with a Price/Earnings ratio of 21.84.
  • Based on the Price/Earnings ratio, ATA is valued cheaper than 87.10% of the companies in the same industry.
  • ATA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 17.68, ATA is valued on the expensive side.
  • ATA's Price/Forward Earnings ratio is rather cheap when compared to the industry. ATA is cheaper than 93.55% of the companies in the same industry.
  • ATA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 21.84
Fwd PE 17.68
ATA.CA Price Earnings VS Forward Price EarningsATA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ATA is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.63
ATA.CA Per share dataATA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • ATA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of ATA may justify a higher PE ratio.
  • ATA's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.71
EPS Next 2Y14.43%
EPS Next 3Y13%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ATA.CA Dividend Analysis

5.1 Amount

  • ATA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

ATA.CA Fundamentals: All Metrics, Ratios and Statistics

ATS AUTOMATION TOOLING SYS

TSX:ATA (1/19/2023, 7:00:00 PM)

50.23

-1.12 (-2.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)N/A
Earnings (Next)02-02
Inst Owners40.15%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.59B
Revenue(TTM)2.35B
Net Income(TTM)133.39M
Analysts80
Price Target59.36 (18.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.21%
Min EPS beat(2)-27.2%
Max EPS beat(2)-9.22%
EPS beat(4)1
Avg EPS beat(4)-6.21%
Min EPS beat(4)-27.2%
Max EPS beat(4)14.79%
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)-11.27%
Min Revenue beat(2)-12.84%
Max Revenue beat(2)-9.71%
Revenue beat(4)0
Avg Revenue beat(4)-9.29%
Min Revenue beat(4)-12.84%
Max Revenue beat(4)-4.34%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.36%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 21.84
Fwd PE 17.68
P/S 1.95
P/FCF N/A
P/OCF 108.51
P/B 4.58
P/tB N/A
EV/EBITDA 16.63
EPS(TTM)2.3
EY4.58%
EPS(NY)2.84
Fwd EY5.66%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.46
OCFY0.92%
SpS25.69
BVpS10.98
TBVpS-6.59
PEG (NY)1.52
PEG (5Y)0.71
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 4.05%
ROE 13.29%
ROCE N/A
ROIC 7.28%
ROICexc 7.58%
ROICexgc 24.94%
OM 9.35%
PM (TTM) 5.68%
GM 28.27%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.96%
ROIC(5y)N/A
ROICexc(3y)7.28%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-6.53%
ROICexgc growth 5Y2.66%
ROICexc growth 3Y-6.91%
ROICexc growth 5Y0.22%
OM growth 3Y-1.34%
OM growth 5Y4.33%
PM growth 3Y-0.29%
PM growth 5Y10.07%
GM growth 3Y2.37%
GM growth 5Y2.56%
F-Score7
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Debt/EBITDA 3.67
Cap/Depr 38.9%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.49
Quick Ratio 1.23
Altman-Z 2.5
F-Score7
WACC8.59%
ROIC/WACC0.85
Cap/Depr(3y)56.63%
Cap/Depr(5y)67.45%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.39%
EPS 3Y30.34%
EPS 5Y30.65%
EPS Q2Q%-5.66%
EPS Next Y14.34%
EPS Next 2Y14.43%
EPS Next 3Y13%
EPS Next 5Y12.52%
Revenue 1Y (TTM)30.36%
Revenue growth 3Y20.3%
Revenue growth 5Y16.64%
Sales Q2Q%12.8%
Revenue Next Year19.18%
Revenue Next 2Y12.71%
Revenue Next 3Y10.29%
Revenue Next 5Y6.74%
EBIT growth 1Y33.16%
EBIT growth 3Y18.69%
EBIT growth 5Y21.69%
EBIT Next Year68.3%
EBIT Next 3Y25.34%
EBIT Next 5Y15.58%
FCF growth 1Y-127.37%
FCF growth 3Y23.41%
FCF growth 5Y8.17%
OCF growth 1Y-39.53%
OCF growth 3Y19.21%
OCF growth 5Y11.07%

ATS AUTOMATION TOOLING SYS / ATA.CA Fundamental Analysis FAQ

What is the fundamental rating for ATA stock?

ChartMill assigns a fundamental rating of 4 / 10 to ATA.CA.


What is the valuation status for ATA stock?

ChartMill assigns a valuation rating of 2 / 10 to ATS AUTOMATION TOOLING SYS (ATA.CA). This can be considered as Overvalued.


How profitable is ATS AUTOMATION TOOLING SYS (ATA.CA) stock?

ATS AUTOMATION TOOLING SYS (ATA.CA) has a profitability rating of 3 / 10.


What are the PE and PB ratios of ATS AUTOMATION TOOLING SYS (ATA.CA) stock?

The Price/Earnings (PE) ratio for ATS AUTOMATION TOOLING SYS (ATA.CA) is 21.84 and the Price/Book (PB) ratio is 4.58.


What is the earnings growth outlook for ATS AUTOMATION TOOLING SYS?

The Earnings per Share (EPS) of ATS AUTOMATION TOOLING SYS (ATA.CA) is expected to grow by 14.34% in the next year.