ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$3.40B
• Dividend Yield: N/A
• Average Volume (3M): 290.36K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.19
• Revenue Growth: -7.46%
• EPS Growth: -49.87%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 97,928,314
• 10 Day Avg. Volume: 438,869
• 30 Day Avg. Volume: 290,362
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.41
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 15.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$52.33
• Price Target Upside: 56.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

ATS Corporation's overall score reflects strong revenue growth and profitability, offset by cash flow challenges and a high P/E ratio. While technical indicators suggest bearish trends, the robust order backlog and strategic focus on high-value sectors like life sciences could bolster future performance. Potential short-term risks include revenue declines and tariff impacts.

ATS Corporation Business Overview & Revenue Model

Company Description

ATS Corporation (ATS) is a global leader in advanced automation solutions, serving a diverse range of industries including life sciences, transportation, packaging, and energy. The company specializes in designing, manufacturing, and delivering custom automation systems that optimize operational efficiency and productivity for its clients. With a focus on innovation and technological advancement, ATS provides end-to-end automation services, including consulting, design, engineering, and post-installation support.

How the Company Makes Money

ATS Corporation generates revenue through the sale of its custom automation systems and related services. The company's primary revenue streams include the design and manufacturing of bespoke automation solutions tailored to specific client needs, which often involve complex engineering and integration of various technologies. Additionally, ATS offers consultancy services to help businesses optimize their processes and achieve greater efficiency. The company also earns from after-sales services, including maintenance, upgrades, and technical support, ensuring long-term relationships with clients. Strategic partnerships with technology providers and component manufacturers enhance ATS's offerings, providing additional value to clients and contributing to its revenue.

ATS Corporation Financial Statement Overview

Summary

ATS Corporation demonstrates strong revenue growth and profitability margins, reflecting robust market positioning. However, moderate leverage and cash flow challenges highlight potential risks. Addressing cash flow issues is critical for long-term sustainability.

Income Statement

ATS Corporation's TTM revenue is $2.75 billion with a gross profit margin of 28.06%, indicating strong profitability in the industrial goods sector. However, the net profit margin has decreased to 3.24%, showing pressure on net income. Revenue demonstrated growth over the past years, with a notable increase from $2.18 billion in 2022 to $3.03 billion in 2024. The EBIT margin is 7.61%, and the EBITDA margin is 12.87%, both showing a healthy capacity to generate operating earnings.

Balance Sheet

The debt-to-equity ratio is 0.99, reflecting a balanced capital structure but with room for improvement. The return on equity (ROE) is 5.09%, indicating moderate efficiency in generating profits from shareholders' equity. The equity ratio is 37.55%, showing a stable financial base. The increase in total assets and stockholders' equity over time indicates growth and investment potential.

Cash Flow

The company experienced negative free cash flow in the TTM, primarily due to significant capital expenditures. The operating cash flow is negative, which could be a concern for liquidity and operational sustainability. The free cash flow to net income ratio is negative, indicating potential challenges in converting net income into usable cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.75B	3.03B	2.58B	2.18B	1.43B	1.43B
	Gross Profit
771.65M	855.50M	725.81M	612.43M	384.26M	362.13M
	EBIT
209.37M	315.39M	222.49M	186.61M	119.61M	95.61M
	EBITDA
354.30M	458.54M	349.94M	302.54M	192.15M	169.08M
	Net Income Common Stockholders
89.24M	193.74M	127.43M	122.10M	64.09M	52.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
263.15M	170.18M	159.87M	135.28M	187.47M	358.64M
	Total Assets
4.67B	4.09B	3.54B	3.07B	2.20B	2.10B
	Total Debt
1.74B	1.29B	1.26B	1.10B	504.78M	665.58M
	Net Debt
1.48B	1.12B	1.10B	966.01M	317.31M	306.93M
	Total Liabilities
2.91B	2.40B	2.41B	2.08B	1.28B	1.23B
	Stockholders Equity
1.75B	1.68B	1.13B	981.60M	895.26M	868.23M
Cash Flow		Free Cash Flow
-70.38M	-67.68M	47.50M	162.90M	153.59M	-36.22M
	Operating Cash Flow
-3.98M	20.78M	127.80M	216.16M	185.16M	20.35M
	Investing Cash Flow
-270.28M	-341.98M	-109.02M	-797.47M	-88.13M	-109.80M
	Financing Cash Flow
269.26M	330.92M	4.88M	531.53M	-259.12M	222.31M

ATS Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Negative. The current price of 33.45 is below the 20-day moving average (MA) of 36.72, below the 50-day MA of 38.89, and below the 200-day MA of 40.42, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 8.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ATS.

ATS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	75 Outperform	C$30.16B	42.77	9.33%	0.65%	11.98%	22.53%
XTC	73 Outperform	C$204.65M	7.30	7.46%	7.89%	-1.93%	3.61%
CAE	72 Outperform	$10.47B	―	-5.31%	―	1.44%	-183.14%
CGY	69 Neutral	C$515.66M	111.87	1.43%	2.61%	9.02%	-76.61%
CVE	67 Neutral	$30.86B	10.08	10.88%	4.67%	3.97%	-22.22%
ATS	66 Neutral	C$3.40B	36.27	5.30%	―	-7.46%	-49.87%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%

ATS Corporation Corporate Events

ATS Corporation to Engage at J.P. Morgan Industrials Conference

ATS Corporation announced the participation of its CEO and CFO in the upcoming J.P. Morgan Industrials Conference in New York City on March 11, 2025. The event will feature a fireside chat, and the company will host institutional investor meetings, which highlights ATS’s commitment to engaging with investors and stakeholders, potentially strengthening its market position and visibility.

ATS Corporation Faces Revenue Decline but Achieves Record Order Bookings

ATS Corporation reported a decrease in its third-quarter fiscal 2025 results, with revenues dropping to $652.0 million, and a significant decline in net income to $6.5 million. Despite the lower revenues attributed to reduced market demand in the North American EV market, the company experienced strong growth in order bookings, reaching a second-highest record in company history, driven by strong performance in the life sciences and food and beverage sectors. The CEO highlighted the robust order backlog, which supports future revenue visibility and value creation for stakeholders.

ATS Corporation to Engage with Investors at Raymond James Conference

ATS Corporation announced the participation of its CEO and CFO in the Raymond James 46th Annual Institutional Investors Conference, scheduled for March 5, 2025. The company will host a fireside chat and arrange meetings with institutional investors, showcasing its leadership and engagement with the investment community. This participation underscores ATS’s commitment to transparency and proactive communication with stakeholders, which could bolster its industry positioning and investor confidence.

ATS Corporation Announces Third Quarter Earnings Call for February 5, 2025

ATS Corporation is set to release its third-quarter financial results on February 5, 2025, followed by a conference call and webcast for management’s remarks and a Q&A session with analysts. This announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting its market positioning and stakeholder perceptions.

ATS Corporation to Engage with Investors at Barclays Conference

ATS Corporation announced that its CEO, Andrew Hider, and CFO, Ryan McLeod, will participate in the Barclays Industrials Select Conference in Miami, FL, on February 20, 2025. This engagement underscores ATS’s commitment to engaging with institutional investors and highlights the company’s strategic presence in the industrial automation sector, potentially strengthening its market positioning and stakeholder relations.

ATS Corporation to Engage in Citi’s Global Tech Conference

ATS Corporation announced its participation in the Citi Global Industrial Tech and Mobility Conference, where CEO Andrew Hider and CFO Ryan McLeod will engage in a fireside chat and host institutional investor meetings. This involvement reflects ATS’s active engagement with investors and stakeholders, potentially enhancing its industry visibility and reinforcing its market position in the automation sector.