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 23 industry peers in the Machinery industry. While ATA has a great profitability rating, there are quite some concerns on its financial health. ATA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ATA was profitable.
- In the past year ATA had a positive cash flow from operations.
1.2 Ratios
- The Return On Assets of ATA (4.05%) is better than 93.55% of its industry peers.
- ATA has a Return On Equity of 13.29%. This is amongst the best in 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 6.48%.
- 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 better Profit Margin (5.68%) than 93.55% of its industry peers.
- In the last couple of years the Profit Margin of ATA has grown nicely.
- ATA's Operating Margin of 9.35% is amongst the best of 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's Gross Margin of 28.27% is fine compared to the rest of the industry. ATA outperforms 74.19% of its industry peers.
- 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
- 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.
- Looking at the Altman-Z score, with a value of 2.50, ATA is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that ATA has dependencies on debt financing.
- ATA has a Debt to Equity ratio of 1.23. This is in the lower half of the industry: ATA underperforms 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.
- The Current ratio of ATA (1.49) is worse than 83.87% of its industry peers.
- 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.
- The Quick ratio of ATA (1.23) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- ATA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.39%, which is quite impressive.
- 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!
- The Revenue has been growing by 16.64% on average over the past years. This is quite good.
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.84, which indicates a rather expensive current valuation of ATA.
- 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 (27.25), we can say ATA is valued inline with the index average.
- The Price/Forward Earnings ratio is 17.68, which indicates a rather expensive current valuation of ATA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ATA indicates a rather cheap valuation: ATA is cheaper than 93.55% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ATA is valued slightly cheaper when compared to this.
| 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 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
- The 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
- ATA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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.
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.
Can you provide the profitability details for ATS AUTOMATION TOOLING SYS?
ATS AUTOMATION TOOLING SYS (ATA.CA) has a profitability rating of 3 / 10.
How financially healthy is ATS AUTOMATION TOOLING SYS?
The financial health rating of ATS AUTOMATION TOOLING SYS (ATA.CA) is 4 / 10.
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.