ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$4.05B
• Dividend Yield: N/A
• Average Volume (3M): 218.14K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.29
• Revenue Growth: -7.46%
• EPS Growth: -49.87%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 97,634,400
• 10 Day Avg. Volume: 180,842
• 30 Day Avg. Volume: 218,140
• PEG Ratio: 7.69
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 109.40
• 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$50.67
• Price Target Upside: 22.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: ―

ATS Corporation demonstrates robust revenue growth and a strong order backlog, particularly in life sciences and food & beverage sectors. However, challenges such as a declining revenue trend, cash flow issues, and high valuation relative to earnings suggest caution. Technical indicators signal bearish momentum, and while strategic initiatives offer long-term promise, short-term risks like tariff impacts and transportation segment challenges cannot be overlooked. The stock is positioned for potential recovery with strategic execution and improved cash management.

ATS Corporation Business Overview & Revenue Model

Company Description

ATS Corporation (ATS) is a leading provider of advanced automation systems and services, catering primarily to industries such as automotive, life sciences, consumer products, and energy. The company specializes in the design and implementation of sophisticated manufacturing solutions that enhance productivity, efficiency, and quality for its clients. By leveraging cutting-edge technology and a highly skilled workforce, ATS delivers customizable and scalable automation solutions that meet the unique needs of its diverse customer base.

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 shows strong revenue growth and profitability margins in its income statement, indicating good market positioning. The balance sheet reveals moderate leverage and a stable equity base, highlighting financial stability yet potential risks with debt. The cash flow statement presents challenges in cash generation, suggesting the need for improved cash management. Overall, the company is performing well but must address cash flow issues to maintain 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
805.60M	855.50M	725.81M	612.43M	384.26M	362.13M
	EBIT
197.63M	315.39M	222.49M	186.61M	119.61M	95.61M
	EBITDA
354.29M	458.54M	349.94M	302.54M	192.15M	169.08M
	Net Income Common Stockholders
89.27M	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: Positive
• Last Price: 41.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Positive. The current price of 41.46 is above the 20-day moving average (MA) of 40.29, above the 50-day MA of 37.01, and above the 200-day MA of 39.66, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 75.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ATS.

ATS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIS	77 Outperform	C$1.35B	26.99	8.74%	2.85%	5.24%	11.02%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
ATS	63 Neutral	C$4.05B	38.53	-1.66%	―	-7.46%	-49.87%
VLN	62 Neutral	C$302.20M	―	-46.86%	0.86%	7.64%	-2.26%
BLDP	49 Neutral	$668.63M	―	-37.81%	―	-29.66%	-67.02%
REKO	49 Neutral	C$20.67M	―	-7.92%	―	-12.65%	-838.74%
PYR	48 Neutral	C$88.68M	―	-5701.32%	―	14.45%	76.75%

ATS Corporation Corporate Events

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.

Spark’s Take on TSE:ATS Stock

According to Spark, TipRanks’ AI Analyst, TSE:ATS is a Neutral.

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.

To see Spark’s full report on TSE:ATS stock, click here.

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.