ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$3.95B
• Dividend Yield: N/A
• Average Volume (3M): 222.32K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.38
• Revenue Growth: -16.47%
• EPS Growth: -114.85%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 97,634,400
• 10 Day Avg. Volume: 206,507
• 30 Day Avg. Volume: 222,322
• PEG Ratio: 1.04
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -89.04
• 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$49.83
• Price Target Upside: 24.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: C$41.00 ▲(2.76%Upside)

The overall stock score for ATS Corporation is impacted significantly by financial performance challenges, including declining revenues, increased leverage, and cash flow constraints. Technical analysis offers a slightly positive outlook with some bullish momentum, but valuation concerns due to negative P/E and lack of dividend yield weigh heavily. While strong order bookings and sector-specific growth are positive signs, they are not sufficient to offset existing financial and valuation risks.

ATS Corporation Business Overview & Revenue Model

Company Description

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in the planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. It offers enterprise solutions in the areas of project management; partners/suppliers/vendors team selection and coordination; facility layouts and operational design; business case development and project justification; post project service, spare parts, and support; and system design, built, integration, commissioning, validation, training and start up. In addition, the company offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services. Further, it provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. The company serves life sciences, transportation, consumer products, food and beverage, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

How the Company Makes Money

ATS Corporation generates revenue through the sale of its automation systems and related services. Key revenue streams include the design, development, and installation of custom automation solutions tailored to specific industry applications. Additionally, ATS offers ongoing maintenance and support services, as well as retrofitting and upgrading existing systems to improve performance. The company also engages in strategic partnerships and collaborations with technology providers and industry leaders to enhance its offerings and expand market reach. These partnerships, along with a focus on innovation and customer satisfaction, contribute significantly to ATS's earnings.

ATS Corporation Financial Statement Overview

Summary

ATS Corporation faces significant financial challenges, with declining revenues, increased leverage, and cash flow constraints. These factors indicate a need for strategic adjustments to stabilize operations and improve financial health. The current trajectory poses risks, especially in maintaining liquidity and profitability.

Income Statement

The company experienced a significant drop in revenue and profitability in the most recent year. The gross profit margin decreased from 28.2% to 25.5%, and the net profit margin turned negative, indicating a net loss. The EBIT and EBITDA margins also declined sharply, reflecting operational challenges. Despite past growth, recent financial performance suggests instability.

Balance Sheet

The company's debt-to-equity ratio increased, suggesting higher leverage which could pose a risk in a volatile market. However, the equity ratio remains stable, indicating a balanced asset structure. Return on equity has deteriorated due to the net loss, reducing shareholder returns.

Cash Flow

Operating cash flow remains positive but is insufficient to cover capital expenditures, leading to a negative free cash flow. The free cash flow to net income ratio is negative, highlighting cash flow challenges. This could impact financial flexibility if not addressed.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.53B	3.03B	2.58B	2.18B	1.43B
Gross Profit	646.65M	855.50M	725.81M	612.43M	384.26M
EBITDA	167.97M	458.54M	349.94M	302.54M	192.15M
Net Income	-28.05M	193.74M	127.43M	122.10M	64.09M
Balance Sheet
Total Assets	4.62B	4.09B	3.54B	3.07B	2.20B
Cash, Cash Equivalents and Short-Term Investments	225.95M	170.18M	159.87M	135.28M	187.47M
Total Debt	1.70B	1.29B	1.26B	1.10B	504.78M
Total Liabilities	2.91B	2.40B	2.41B	2.08B	1.28B
Stockholders Equity	1.71B	1.68B	1.13B	981.60M	895.26M
Cash Flow
Free Cash Flow	-52.26M	-67.68M	47.50M	162.90M	153.59M
Operating Cash Flow	25.77M	20.78M	127.80M	216.16M	185.16M
Investing Cash Flow	-268.44M	-341.98M	-109.02M	-797.47M	-88.13M
Financing Cash Flow	290.28M	330.92M	4.88M	531.53M	-259.12M

ATS Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.90
• 50DMA: Negative
• 100DMA: Positive
• 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 39.9 is below the 20-day moving average (MA) of 42.39, below the 50-day MA of 39.97, and below the 200-day MA of 40.22, indicating a bearish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.61 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
Sector *	71 Outperform	¥254.47B	13.17	8.49%	3.06%	6.31%	13.07%
ATS	54 Neutral	C$3.95B	38.53	-1.66%	―	-16.47%	-114.85%
BLDP		$508.46M	―	-37.81%	―	―	―
SIS	77 Outperform	C$1.40B	27.90	8.74%	2.76%	5.24%	11.02%
REKO	59 Neutral	C$20.38M	―	-7.92%	―	-12.65%	-838.74%
VLN	52 Neutral	C$312.77M	―	-46.86%	0.83%	-1.54%	-290.52%
PYR	47 Neutral	C$90.54M	―	-5701.32%	―	14.45%	76.75%

ATS Corporation Corporate Events

ATS Corporation Announces CEO Departure and Interim Leadership

ATS Corporation announced the departure of CEO Andrew Hider, who will leave by the end of August to pursue opportunities outside the automation industry. Ryan McLeod, the current CFO, will serve as interim CEO while the board searches for a permanent replacement. Under Hider’s leadership, ATS experienced significant growth and implemented the ATS Business Model, positioning the company well for future success. The company’s outlook for the fiscal year remains unchanged.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage Investors at Stifel 2025 Conference

ATS Corporation announced that its CEO, Andrew Hider, and CFO, Ryan McLeod, will participate in the Stifel 2025 Cross Sector Insight Conference in Boston on June 3, 2025. This participation includes hosting institutional investor meetings, highlighting ATS’s commitment to engaging with investors and showcasing its industry-leading automation solutions.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$68.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Reports Fiscal 2025 Results Amid EV Settlement Impact

ATS Corporation reported its financial results for the fourth quarter and fiscal year 2025, highlighting a challenging period marked by a significant EV customer settlement impacting revenues and net income. Despite these challenges, the company saw a strong performance in order bookings and backlog, indicating positive future revenue visibility and a strategic focus on growth as it enters fiscal 2026.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$68.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Settles with EV Customer and Reports Preliminary Q4 2025 Results

ATS Corporation has reached a settlement agreement with an electric vehicle customer, resolving outstanding payments with a $134.75 million payment expected in the first quarter of fiscal 2026. This settlement allows ATS to focus on its growth strategy in regulated markets, despite a reduction in net income by $129 million due to the agreement. Preliminary financial results for the fourth quarter of fiscal 2025 show revenues of $721 million and a net loss of $68.9 million, with adjusted net income of $40 million.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$58.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage with Investors at RBC Capital Markets Conference

ATS Corporation announced that its Chief Financial Officer, Ryan McLeod, will participate in the RBC Capital Markets Canadian Industrials Conference in Toronto on May 15, 2025. This participation underscores ATS’s commitment to engaging with institutional investors and highlights its strategic positioning in the industrial automation sector.