ATS AUTOMATION TOOLING SYS (ATA.CA) Stock Fundamental Analysis
TSX:ATA - Toronto Stock Exchange - CA0019401052 - Common Stock - Currency: CAD
Taking everything into account, ATA scores 5 out of 10 in our fundamental rating. ATA was compared to 22 industry peers in the Machinery industry. ATA has an excellent profitability rating, but there are concerns on its financial health. ATA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ATA had positive earnings in the past year.
In the past year ATA had a positive cash flow from operations.
ATA had positive earnings in each of the past 5 years.
Each year in the past 5 years ATA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ATA (4.05%) is better than 93.55% of its industry peers.
ATA's Return On Equity of 13.29% is amongst the best of the industry. ATA outperforms 96.77% of its industry peers.
The Return On Invested Capital of ATA (7.28%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATA is significantly above the industry average of 8.72%.
The last Return On Invested Capital (7.28%) for ATA is well below the 3 year average (24.96%), which needs to be investigated, but indicates that ATA had better years and this may not be a problem.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of ATA (5.68%) is better than 93.55% of its industry peers.
ATA's Profit Margin has improved in the last couple of years.
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.
ATA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 28.27%, ATA is doing good in the industry, outperforming 74.19% of the companies in the same industry.
ATA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ATA is creating value.
ATA has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ATA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ATA is not a great score, but indicates 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.
A Debt/Equity ratio of 1.23 is on the high side and indicates that ATA has dependencies on debt financing.
ATA has a worse Debt to Equity ratio (1.23) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.85
WACC8.59%
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.
Looking at the Current ratio, with a value of 1.49, ATA is doing worse than 83.87% of the companies in the same industry.
ATA has a Quick Ratio of 1.23. This is a normal value and indicates that ATA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.23, ATA is doing good in the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.39% over the past year.
Measured over the past years, ATA shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.65% on average per year.
The Revenue has grown by 30.36% in the past year. This is a very strong growth!
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.
The Revenue is expected to grow by 6.74% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
ATA is valuated rather expensively with a Price/Earnings ratio of 21.84.
87.10% of the companies in the same industry are more expensive than ATA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.21. ATA is around the same levels.
ATA is valuated rather expensively with a Price/Forward Earnings ratio of 17.68.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 17.68 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
ATA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATA has an outstanding profitability rating, which 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%
5. Dividend
5.1 Amount
No dividends for ATA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
Inst Owners40.15%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.59B
Analysts80
Price Target59.36 (18.18%)
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 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y-6.53%
ROICexcg 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 Rank | Sector 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%