ATS CORP (ATS) Stock Fundamental Analysis
NYSE:ATS - CA00217Y1043 - Common Stock
27.72 USD
+0.17 (+0.62%)
27.72 USD
0 (0%)
Taking everything into account, ATS scores 3 out of 10 in our fundamental rating. ATS was compared to 128 industry peers in the Machinery industry. Both the profitability and financial health of ATS have multiple concerns. ATS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ATS had positive earnings in the past year.
ATS had a positive operating cash flow in the past year.
Of the past 5 years ATS 4 years were profitable.
In the past 5 years ATS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.89%, ATS is doing worse than 71.88% of the companies in the same industry.
ATS has a worse Return On Equity (-2.30%) than 71.09% of its industry peers.
The Return On Invested Capital of ATS (1.59%) is worse than 70.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATS is below the industry average of 9.99%.
The last Return On Invested Capital (1.59%) for ATS is well below the 3 year average (6.08%), which needs to be investigated, but indicates that ATS had better years and this may not be a problem.
| 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 has a Operating Margin of 2.62%. This is in the lower half of the industry: ATS underperforms 70.31% of its industry peers.
In the last couple of years the Operating Margin of ATS has declined.
ATS has a worse Gross Margin (25.92%) than 63.28% 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.
Compared to 1 year ago, ATS has less shares outstanding
ATS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATS has a worse debt to assets ratio.
2.2 Solvency
ATS has an Altman-Z score of 1.85. This is not the best score and indicates that ATS is in the grey zone with still only limited risk for bankruptcy at the moment.
ATS has a Altman-Z score of 1.85. This is in the lower half of the industry: ATS underperforms 67.97% of its industry peers.
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 lower half of the industry: ATS underperforms 62.50% of its industry peers.
ATS has a Debt/Equity ratio of 0.87. This is a neutral value indicating ATS is somewhat dependend on debt financing.
ATS has a worse Debt to Equity ratio (0.87) than 75.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 10.97 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.16
WACC9.68%
2.3 Liquidity
ATS has a Current Ratio of 1.62. This is a normal value and indicates that ATS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.62, ATS is doing worse than 70.31% of the companies in the same industry.
ATS has a Quick Ratio of 1.32. This is a normal value and indicates that ATS is financially healthy and should not expect problems in meeting its short term obligations.
ATS has a Quick ratio (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ATS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.80%.
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 21.89% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y25.7%
EPS Next 2Y25.83%
EPS Next 3Y21.89%
EPS Next 5YN/A
Revenue Next Year11.64%
Revenue Next 2Y8.92%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 27.45, ATS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ATS.
Compared to an average S&P500 Price/Earnings ratio of 27.13, ATS is valued at the same level.
The Price/Forward Earnings ratio is 16.27, which indicates a correct valuation of ATS.
ATS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATS is cheaper than 70.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATS to the average of the S&P500 Index (22.76), we can say ATS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
ATS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATS is more expensive than 67.97% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ATS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.87 | ||
| EV/EBITDA | 22.95 |
4.3 Compensation for Growth
ATS's 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 21.89% in the coming years.
PEG (NY)1.07
PEG (5Y)3.98
EPS Next 2Y25.83%
EPS Next 3Y21.89%
5. Dividend
5.1 Amount
No dividends for ATS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.72
+0.17 (+0.62%)
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 Cap2.71B
Analysts76.67
Price Target34.24 (23.52%)
Short Float %3.79%
Short Ratio27.65
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)-1.4%
PT rev (3m)-5.24%
EPS NQ rev (1m)-6.53%
EPS NQ rev (3m)-24.16%
EPS NY rev (1m)-11.26%
EPS NY rev (3m)-11.26%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 16.27 | ||
| P/S | 1.45 | ||
| P/FCF | 26.87 | ||
| P/OCF | 17.16 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.95 |
EPS(TTM)1.01
EY3.64%
EPS(NY)1.7
Fwd EY6.15%
FCF(TTM)1.03
FCFY3.72%
OCF(TTM)1.62
OCFY5.83%
SpS19.18
BVpS12.71
TBVpS-3.05
PEG (NY)1.07
PEG (5Y)3.98
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 | 1.85 |
F-Score3
WACC9.68%
ROIC/WACC0.16
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 3Y21.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.38%
Revenue growth 3Y5.09%
Revenue growth 5Y12.12%
Sales Q2Q%6.11%
Revenue Next Year11.64%
Revenue Next 2Y8.92%
Revenue Next 3Y8.18%
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 3Y21.43%
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%