ATS AUTOMATION TOOLING SYS (ATA.CA) Stock Fundamental Analysis
TSX:ATA - Toronto Stock Exchange - CA0019401052 - Common Stock - Currency: CAD
Overall ATA gets a fundamental rating of 5 out of 10. We evaluated ATA against 20 industry peers in the Machinery industry. While ATA belongs to the best of the industry regarding profitability, 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.
ATA had a positive operating cash flow in the past year.
In the past 5 years ATA has always been profitable.
In the past 5 years ATA always reported a positive cash flow from operatings.
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.
The Return On Equity of ATA (13.29%) is better than 96.77% of its industry peers.
ATA has a better Return On Invested Capital (7.28%) 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 8.49%.
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
Looking at the Profit Margin, with a value of 5.68%, ATA belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Profit Margin of ATA has grown nicely.
ATA has a Operating Margin of 9.35%. This is amongst the best in the industry. ATA outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of ATA has grown nicely.
ATA has a Gross Margin of 28.27%. This is in the better half of the industry: ATA outperforms 74.19% of its industry peers.
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
ATA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 has a Altman-Z score of 2.50. This is in the better half 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
A Current Ratio of 1.49 indicates that ATA should not have too much problems paying 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.
ATA has a better Quick ratio (1.23) than 61.29% of its industry peers.
| 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.
ATA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.65% yearly.
ATA shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.36%.
Measured over the past years, ATA shows a quite strong growth in Revenue. The Revenue has been growing by 16.64% on average per year.
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
ATA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.52% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.84, which indicates a rather expensive current valuation of ATA.
Based on the Price/Earnings ratio, ATA is valued cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.65, ATA is valued at the same level.
The Price/Forward Earnings ratio is 17.68, which indicates a rather expensive current valuation of ATA.
Based on the Price/Forward Earnings ratio, ATA is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATA to the average of the S&P500 Index (21.27), we can say ATA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
ATA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATA is cheaper than 67.74% of the companies in the same industry.
| 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.
A more expensive valuation may be justified as ATA's earnings are expected to grow with 13.00% in the coming years.
PEG (NY)1.52
PEG (5Y)0.71
EPS Next 2Y14.43%
EPS Next 3Y13%
5. Dividend
5.1 Amount
ATA does not give a dividend.
| 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%