ATS AUTOMATION TOOLING SYS (ATA.CA) Fundamental Analysis & Valuation

TSX:ATA • CA0019401052

Current stock price

50.23 CAD
-1.12 (-2.18%)
Last:

This ATA.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ATA.CA Profitability Analysis

1.1 Basic Checks

  • ATA had positive earnings in the past year.
  • ATA had a positive operating cash flow in the past year.
ATA.CA Yearly Net Income VS EBIT VS OCF VS FCFATA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M

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.
  • 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 7.86%.
  • 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 RankSector 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
ATA.CA Yearly ROA, ROE, ROICATA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • The Profit Margin of ATA (5.68%) is better 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.
  • ATA's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 28.27%, ATA is in the better half of 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 RankSector 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%
ATA.CA Yearly Profit, Operating, Gross MarginsATA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 5 10 15 20 25

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3

2. ATA.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ATA is creating value.
  • The number of shares outstanding for ATA has been increased compared to 1 year ago.
  • Compared to 1 year ago, ATA has a worse debt to assets ratio.
ATA.CA Yearly Shares OutstandingATA.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M
ATA.CA Yearly Total Debt VS Total AssetsATA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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.
  • ATA has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external 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 RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 2.5
ROIC/WACC0.85
WACC8.59%
ATA.CA Yearly LT Debt VS Equity VS FCFATA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

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.
  • ATA has a better Quick ratio (1.23) than 61.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.23
ATA.CA Yearly Current Assets VS Current LiabilitesATA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ATA.CA Growth Analysis

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

  • 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.
  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ATA.CA Yearly Revenue VS EstimatesATA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
ATA.CA Yearly EPS VS EstimatesATA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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4

4. ATA.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.84 indicates a rather expensive 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 (25.23), we can say ATA is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 17.68, the valuation of ATA can be described as rather expensive.
  • 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.
  • When comparing the Price/Forward Earnings ratio of ATA to the average of the S&P500 Index (23.28), we can say ATA is valued slightly cheaper.
Industry RankSector Rank
PE 21.84
Fwd PE 17.68
ATA.CA Price Earnings VS Forward Price EarningsATA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF N/A
EV/EBITDA 16.63
ATA.CA Per share dataATA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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.
  • 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ATA.CA Dividend Analysis

5.1 Amount

  • ATA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ATA.CA Fundamentals: All Metrics, Ratios and Statistics

ATS AUTOMATION TOOLING SYS

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)N/A
Earnings (Next)02-02
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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.