ATS AUTOMATION TOOLING SYS (ATA.CA) Stock Fundamental Analysis
TSX:ATA - Toronto Stock Exchange - CA0019401052 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ATA. ATA was compared to 21 industry peers in the Machinery industry. ATA scores excellent on profitability, but there are concerns on its financial health. ATA is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years ATA has 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.
ATA has a better Return On Equity (13.29%) than 96.77% of its industry peers.
The Return On Invested Capital of ATA (7.28%) is better than 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 8.62%.
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 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.
ATA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.35%, ATA belongs to the top 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.
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.
The debt/assets ratio for ATA is higher compared to a year ago.
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.
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's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. ATA is outperformed by 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.
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.
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!
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
A Price/Earnings ratio of 21.84 indicates a rather expensive valuation of ATA.
ATA's Price/Earnings ratio is rather cheap when compared to the industry. ATA is cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, ATA is valued at the same level.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of ATA.
Based on the Price/Forward Earnings ratio, ATA is valued cheaper than 93.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. 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 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
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%