ATS CORP (ATS.CA) Stock Fundamental Analysis
Canada - TSX:ATS - CA00217Y1043 - Common Stock
38.56 CAD
-0.36 (-0.92%)
Overall ATS gets a fundamental rating of 4 out of 10. We evaluated ATS against 23 industry peers in the Machinery industry. Both the profitability and the financial health of ATS get a neutral evaluation. Nothing too spectacular is happening here. ATS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATS was profitable.
In the past year ATS had a positive cash flow from operations.
Of the past 5 years ATS 4 years were profitable.
Each year in the past 5 years ATS had a positive operating cash flow.
1.2 Ratios
ATS has a Return On Assets (-0.89%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -2.30%, ATS is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
ATS has a Return On Invested Capital (1.59%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ATS is in line with the industry average of 7.00%.
The 3 year average ROIC (6.08%) for ATS is well above the current ROIC(1.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.3% | ||
| ROIC | 1.59% |
ROA(3y)2.58%
ROA(5y)2.92%
ROE(3y)7.06%
ROE(5y)8.16%
ROIC(3y)6.08%
ROIC(5y)6.21%
1.3 Margins
ATS's Operating Margin of 2.62% is in line compared to the rest of the industry. ATS outperforms 47.83% of its industry peers.
ATS's Operating Margin has declined in the last couple of years.
ATS has a Gross Margin of 25.92%. This is comparable to the rest of the industry: ATS outperforms 47.83% of its industry peers.
In the last couple of years the Gross Margin of ATS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | 25.92% |
OM growth 3Y-30.58%
OM growth 5Y-19.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATS is destroying value.
ATS has less shares outstanding than it did 1 year ago.
ATS has more shares outstanding than it did 5 years ago.
ATS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that ATS 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 1.86, ATS is in line with its industry, outperforming 47.83% of the companies in the same industry.
ATS has a debt to FCF ratio of 10.97. This is a negative value and a sign of low solvency as ATS would need 10.97 years to pay back of all of its debts.
ATS has a Debt to FCF ratio of 10.97. This is in the better half of the industry: ATS outperforms 73.91% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that ATS is somewhat dependend on debt financing.
ATS has a Debt to Equity ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 10.97 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.17
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.62 indicates that ATS should not have too much problems paying its short term obligations.
ATS has a Current ratio of 1.62. This is comparable to the rest of the industry: ATS outperforms 43.48% of its industry peers.
A Quick Ratio of 1.32 indicates that ATS should not have too much problems paying its short term obligations.
ATS's Quick ratio of 1.32 is amongst the best of the industry. ATS outperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for ATS have decreased strongly by -42.80% in the last year.
ATS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.90% yearly.
ATS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.38%.
ATS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.12% yearly.
EPS 1Y (TTM)-42.8%
EPS 3Y-11.98%
EPS 5Y6.9%
EPS Q2Q%-18%
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%6.11%
3.2 Future
The Earnings Per Share is expected to grow by 21.73% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.04% on average over the next years. This is quite good.
EPS Next Y25.7%
EPS Next 2Y25.83%
EPS Next 3Y21.73%
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 27.74, which means the current valuation is very expensive for ATS.
Compared to the rest of the industry, the Price/Earnings ratio of ATS indicates a rather cheap valuation: ATS is cheaper than 86.96% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ATS to the average of the S&P500 Index (27.41), we can say ATS is valued inline with the index average.
With a Price/Forward Earnings ratio of 16.46, ATS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATS indicates a somewhat cheap valuation: ATS is cheaper than 78.26% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ATS to the average of the S&P500 Index (22.87), we can say ATS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATS.
Based on the Price/Free Cash Flow ratio, ATS is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.23 | ||
| EV/EBITDA | 23.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ATS's earnings are expected to grow with 21.73% in the coming years.
PEG (NY)1.08
PEG (5Y)4.02
EPS Next 2Y25.83%
EPS Next 3Y21.73%
5. Dividend
5.1 Amount
No dividends for ATS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ATS (9/22/2025, 7:00:00 PM)
38.56
-0.36 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.4%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap3.77B
Analysts76.36
Price Target47.36 (22.82%)
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 Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.26%
Min EPS beat(2)-2.83%
Max EPS beat(2)9.34%
EPS beat(4)1
Avg EPS beat(4)-4.31%
Min EPS beat(4)-22.3%
Max EPS beat(4)9.34%
EPS beat(8)2
Avg EPS beat(8)-1.09%
EPS beat(12)4
Avg EPS beat(12)1.58%
EPS beat(16)8
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)-7.46%
Min Revenue beat(2)-17.23%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-5.29%
Min Revenue beat(4)-17.23%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)-1.39%
Revenue beat(12)7
Avg Revenue beat(12)0.01%
Revenue beat(16)10
Avg Revenue beat(16)1.04%
PT rev (1m)-0.75%
PT rev (3m)-6.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.26%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.46 | ||
| P/FCF | 27.23 | ||
| P/OCF | 17.39 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.15 |
EPS(TTM)1.39
EY3.6%
EPS(NY)2.34
Fwd EY6.08%
FCF(TTM)1.42
FCFY3.67%
OCF(TTM)2.22
OCFY5.75%
SpS26.33
BVpS17.45
TBVpS-4.19
PEG (NY)1.08
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -2.3% | ||
| ROCE | 2.02% | ||
| ROIC | 1.59% | ||
| ROICexc | 1.68% | ||
| ROICexgc | 5.11% | ||
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | 25.92% | ||
| FCFM | 5.38% |
ROA(3y)2.58%
ROA(5y)2.92%
ROE(3y)7.06%
ROE(5y)8.16%
ROIC(3y)6.08%
ROIC(5y)6.21%
ROICexc(3y)6.47%
ROICexc(5y)6.7%
ROICexgc(3y)21.12%
ROICexgc(5y)23.22%
ROCE(3y)7.75%
ROCE(5y)7.9%
ROICexcg growth 3Y-44.72%
ROICexcg growth 5Y-24.75%
ROICexc growth 3Y-37.32%
ROICexc growth 5Y-25.02%
OM growth 3Y-30.58%
OM growth 5Y-19.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y0.22%
F-Score3
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 10.97 | ||
| Debt/EBITDA | 6.75 | ||
| Cap/Depr | 51.43% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 0.73 | ||
| Cash Conversion | 98.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.86 |
F-Score3
WACC9.28%
ROIC/WACC0.17
Cap/Depr(3y)59.25%
Cap/Depr(5y)53.7%
Cap/Sales(3y)3.04%
Cap/Sales(5y)2.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.8%
EPS 3Y-11.98%
EPS 5Y6.9%
EPS Q2Q%-18%
EPS Next Y25.7%
EPS Next 2Y25.83%
EPS Next 3Y21.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%6.11%
Revenue Next Year11.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.04%
Revenue Next 5YN/A
EBIT growth 1Y-79.35%
EBIT growth 3Y-27.04%
EBIT growth 5Y-9.42%
EBIT Next Year55.73%
EBIT Next 3Y21.27%
EBIT Next 5YN/A
FCF growth 1Y452.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y319.6%
OCF growth 3Y-50.79%
OCF growth 5Y4.89%