ATS AUTOMATION TOOLING SYS (ATA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATA - CA0019401052 - Common Stock
50.23 CAD
-1.12 (-2.18%)
Overall ATA gets a fundamental rating of 5 out of 10. We evaluated ATA against 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.
ATA had a positive operating cash flow in the past year.
Each year in the past 5 years ATA has been profitable.
ATA had a positive operating cash flow in each of the past 5 years.
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's Return On Equity of 13.29% is amongst the best of the industry. ATA outperforms 96.77% of its industry peers.
ATA has a Return On Invested Capital of 7.28%. This is amongst the best in the industry. ATA outperforms 100.00% of its industry peers.
ATA had an Average Return On Invested Capital over the past 3 years of 24.96%. This is significantly above the industry average of 6.43%.
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
ATA has a Profit Margin of 5.68%. This is amongst the best in the industry. ATA outperforms 93.55% of its industry peers.
In the last couple of years the Profit Margin of ATA has grown nicely.
ATA has a better Operating Margin (9.35%) than 96.77% of its industry peers.
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.
In the last couple of years the Gross Margin of ATA has grown nicely.
| 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.
ATA has a worse debt/assets ratio than last year.
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.
The Altman-Z score of ATA (2.50) is better than 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.
With a Current ratio value of 1.49, ATA is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
A Quick Ratio of 1.23 indicates that ATA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.23, ATA is in the better half of 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!
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
Based on estimates for the next years, ATA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.52% on average per year.
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
Based on the Price/Earnings ratio of 21.84, the valuation of ATA can be described as rather expensive.
87.10% of the companies in the same industry are more expensive than ATA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATA to the average of the S&P500 Index (26.77), we can say ATA is valued inline with the index average.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, ATA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATA indicates a somewhat cheap valuation: ATA is cheaper than 67.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
The 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.
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
Revenue(TTM)2.35B
Net Income(TTM)133.39M
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
Graham NumberN/A
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
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 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%
ATS AUTOMATION TOOLING SYS / ATA.CA FAQ
What is the fundamental rating for ATA stock?
ChartMill assigns a fundamental rating of 4 / 10 to ATA.CA.
Can you provide the valuation status for ATS AUTOMATION TOOLING SYS?
ChartMill assigns a valuation rating of 2 / 10 to ATS AUTOMATION TOOLING SYS (ATA.CA). This can be considered as Overvalued.
What is the profitability of ATA stock?
ATS AUTOMATION TOOLING SYS (ATA.CA) has a profitability rating of 3 / 10.
What is the financial health of ATS AUTOMATION TOOLING SYS (ATA.CA) stock?
The financial health rating of ATS AUTOMATION TOOLING SYS (ATA.CA) is 4 / 10.
Can you provide the expected EPS growth for ATA stock?
The Earnings per Share (EPS) of ATS AUTOMATION TOOLING SYS (ATA.CA) is expected to grow by 14.34% in the next year.