(ATS) ATS - Overview
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 3.140m USD | Total Return: 12% in 12m
Avg Turnover: 4.24M
Qual. Beats: 0
Rev. Trend: -22.4%
Qual. Beats: 0
Warnings
P/E ratio 231.4
High Debt/EBITDA (6.4) with thin interest coverage (0.8)
Interest Coverage Ratio 0.8 is critical
Tailwinds
No distinct edge detected
ATS Corporation is a global provider of integrated automation solutions, specializing in the design, construction, and servicing of custom manufacturing and assembly systems. The company supports the entire equipment lifecycle through pre-automation consulting, digital software solutions for real-time performance tracking, and comprehensive aftermarket support. Its diversified portfolio serves high-barrier industries including life sciences, nuclear energy, and transportation.
The business model relies heavily on a cradle-to-grave approach, where recurring revenue is generated through long-term maintenance contracts and software-driven process optimizations. In the industrial machinery sector, companies like ATS benefit from the global trend toward reshoring as manufacturers seek to mitigate labor shortages and supply chain volatility through increased robotics integration.
Investors can evaluate the underlying valuation and growth metrics of this stock by visiting ValueRay.
Founded in 1978 and headquartered in Canada, ATS has evolved from a traditional tooling firm into a sophisticated technology partner. The company’s focus on the Life Sciences vertical provides a defensive buffer, as pharmaceutical and medical device manufacturing often requires specialized, highly regulated automation that is less sensitive to broader economic cycles.
- Life sciences sector demand drives long term recurring revenue growth
- Strategic acquisitions and integration efficiency impact consolidated operating margins
- Global manufacturing capital expenditure cycles dictate new order bookings volume
- Order backlog execution speed determines quarterly revenue and cash flow
- High interest rates pressure customer financing for large scale automation projects
| Net Income: 18.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 7.16 > 1.0 |
| NWC/Revenue: 25.57% < 20% (prev 36.13%; Δ -10.55% < -1%) |
| CFO/TA 0.08 > 3% & CFO 338.1m > Net Income 18.9m |
| Net Debt (1.46b) to EBITDA (227.5m): 6.42 < 3 |
| Current Ratio: 1.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (98.2m) vs 12m ago -0.45% < -2% |
| Gross Margin: 25.87% > 18% (prev 0.29%; Δ 2.56k% > 0.5%) |
| Asset Turnover: 61.22% > 50% (prev 58.94%; Δ 2.28% > 0%) |
| Interest Coverage Ratio: 0.81 > 6 (EBITDA TTM 227.5m / Interest Expense TTM 101.8m) |
| A: 0.16 (Total Current Assets 1.81b - Total Current Liabilities 1.10b) / Total Assets 4.48b |
| B: 0.16 (Retained Earnings 737.6m / Total Assets 4.48b) |
| C: 0.02 (EBIT TTM 82.3m / Avg Total Assets 4.57b) |
| D: 0.70 (Book Value of Equity 1.90b / Total Liabilities 2.70b) |
| Altman-Z'' = 2.44 = A |
| DSRI: 0.82 (Receivables 1.14b/1.37b, Revenue 2.80b/2.75b) |
| GMI: 1.13 (GM 25.87% / 29.29%) |
| AQI: 1.08 (AQ_t 0.50 / AQ_t-1 0.46) |
| SGI: 1.02 (Revenue 2.80b / 2.75b) |
| TATA: -0.07 (NI 18.9m - CFO 338.1m) / TA 4.48b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 34.28 with a total of 93,323 shares traded.
Over the past week, the price has changed by +7.13%,
over one month by +3.75%,
over three months by +5.44% and
over the past year by +11.95%.
ATS has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold ATS.
- StrongBuy: 1
- Buy: 5
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 35 | 2.1% |
P/E Trailing = 231.3571
P/E Forward = 20.7469
P/S = 1.1215
P/B = 2.3595
Revenue TTM = 2.80b CAD
EBIT TTM = 82.3m CAD
EBITDA TTM = 227.5m CAD
Long Term Debt = 1.37b CAD (from longTermDebt, last quarter)
Short Term Debt = 36.3m CAD (from shortTermDebt, last quarter)
Debt = 1.72b CAD (from shortLongTermDebtTotal, last quarter) + Leases 130.5m
Net Debt = 1.46b CAD (calculated: Debt 1.72b - CCE 262.9m)
Enterprise Value = 5.80b CAD (4.34b + Debt 1.72b - CCE 262.9m)
Interest Coverage Ratio = 0.81 (Ebit TTM 82.3m / Interest Expense TTM 101.8m)
EV/FCF = 20.80x (Enterprise Value 5.80b / FCF TTM 278.7m)
FCF Yield = 4.81% (FCF TTM 278.7m / Enterprise Value 5.80b)
FCF Margin = 9.96% (FCF TTM 278.7m / Revenue TTM 2.80b)
Net Margin = 0.67% (Net Income TTM 18.9m / Revenue TTM 2.80b)
Gross Margin = 25.87% ((Revenue TTM 2.80b - Cost of Revenue TTM 2.08b) / Revenue TTM)
Gross Margin QoQ = 29.44% (prev 30.05%)
Tobins Q-Ratio = 1.29 (Enterprise Value 5.80b / Total Assets 4.48b)
Interest Expense / Debt = 5.91% (Interest Expense 101.8m / Debt 1.72b)
Taxrate = 10.73% (3.61m / 33.6m)
NOPAT = 73.4m (EBIT 82.3m * (1 - 10.73%))
Current Ratio = 1.65 (Total Current Assets 1.81b / Total Current Liabilities 1.10b)
Debt / Equity = 0.97 (Debt 1.72b / totalStockholderEquity, last quarter 1.78b)
Debt / EBITDA = 6.42 (Net Debt 1.46b / EBITDA 227.5m)
Debt / FCF = 5.24 (Net Debt 1.46b / FCF TTM 278.7m)
Total Stockholder Equity = 1.74b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.41% (Net Income 18.9m / Total Assets 4.48b)
RoE = 1.09% (Net Income TTM 18.9m / Total Stockholder Equity 1.74b)
RoCE = 2.65% (EBIT 82.3m / Capital Employed (Equity 1.74b + L.T.Debt 1.37b))
RoIC = 2.18% (NOPAT 73.4m / Invested Capital 3.37b)
WACC = 8.75% (E(4.34b)/V(6.06b) * Re(10.13%) + D(1.72b)/V(6.06b) * Rd(5.91%) * (1-Tc(0.11)))
Discount Rate = 10.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -0.60%
[DCF] Terminal Value 74.05% ; FCFF base≈278.7m ; Y1≈279.8m ; Y5≈296.4m
[DCF] Fair Price = 29.47 (EV 4.32b - Net Debt 1.46b = Equity 2.86b / Shares 97.0m; r=8.75% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.05 | # QB: 0
Revenue Correlation: -22.42 | Revenue CAGR: -1.49% | SUE: 0.60 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.38 | Chg30d=-4.71% | Revisions=-20% | Analysts=5
[Analyst] Revisions Ratio: -20%