ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$3.69B
• Dividend Yield: N/A
• Average Volume (3M): 190.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -5.59%
• EPS Growth: -104.09%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.45
• Shares Outstanding: 97,653,244
• 10 Day Avg. Volume: 163,690
• 30 Day Avg. Volume: 190,888
• PEG Ratio: 0.54
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -66.04
• 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$48.84
• Price Target Upside: 40.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: C$35.00 ▲(0.57% Upside)

The overall stock score is primarily impacted by financial performance challenges, including profitability and cash flow issues, and bearish technical indicators. The valuation is also a concern with a negative P/E ratio. However, the earnings call provided some positive insights with strong revenue growth and a robust order backlog, which slightly offsets the negative aspects.

Positive Factors

Strong Revenue Growth

The significant increase in revenue indicates robust demand for ATS's automation solutions, suggesting strong market positioning and potential for sustained growth.

Record Order Backlog

A substantial order backlog ensures future revenue streams, reflecting customer confidence and supporting long-term business stability.

Energy Segment Growth

The growth in the Energy segment, driven by nuclear refurbishment projects, highlights ATS's ability to capitalize on industry trends and expand its market reach.

Negative Factors

Profitability Challenges

Negative profitability metrics suggest operational inefficiencies and cost management issues, potentially impacting long-term financial health.

Weak Cash Flow

Weak cash flow generation limits ATS's ability to invest in growth opportunities and may strain financial flexibility, affecting future operations.

Restructuring Costs

Significant restructuring expenses indicate ongoing operational challenges and may lead to short-term disruptions, impacting profitability.

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 generates revenue through multiple streams, primarily from the sale of automated manufacturing systems and equipment. The company's revenue model includes direct sales of custom automation solutions, which are tailored to meet the specific needs of various industries. Additionally, ATS earns income from ongoing maintenance and support services, which provide recurring revenue opportunities. Strategic partnerships with key technology providers and industry leaders enhance its market presence and facilitate access to new customer segments. The company also benefits from long-term contracts with clients, ensuring a stable revenue flow over time.

ATS Corporation Financial Statement Overview

Summary

ATS Corporation faces a challenging financial environment with profitability and cash flow issues. Despite modest revenue growth, profitability metrics are under pressure, and cash flow is weak. The balance sheet remains stable with controlled leverage, but negative returns on equity highlight underlying challenges.

Income Statement

ATS Corporation's income statement shows a challenging period with declining profitability. The TTM data indicates a negative net profit margin of -1.11%, reflecting losses. Revenue growth is modest at 1.68% TTM, but gross profit margin has decreased compared to previous years. The EBIT margin is slightly positive at 0.60%, but the EBITDA margin is healthier at 6.63%. Overall, the company faces profitability challenges despite some revenue growth.

Balance Sheet

The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.997, indicating balanced leverage. However, the return on equity is negative at -2.29% TTM, highlighting profitability issues. The equity ratio is not explicitly calculated, but the company's total assets and equity suggest a moderate equity base. While leverage is controlled, the negative ROE is a concern.

Cash Flow

Cash flow analysis shows significant challenges, with a negative free cash flow growth rate of -438.11% TTM. The operating cash flow to net income ratio is low at 0.02, indicating weak cash generation relative to earnings. The free cash flow to net income ratio is negative, reflecting cash flow difficulties. Overall, the cash flow situation is concerning, with negative trends in key metrics.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.58B	3.03B	2.53B	2.58B	2.18B	1.43B
Gross Profit	659.85M	855.50M	646.65M	725.81M	612.43M	384.26M
EBITDA	157.86M	458.54M	167.97M	349.94M	302.54M	192.15M
Net Income	-39.21M	193.74M	-28.05M	127.43M	122.10M	64.09M
Balance Sheet
Total Assets	4.41B	4.09B	4.62B	3.54B	3.07B	2.20B
Cash, Cash Equivalents and Short-Term Investments	188.61M	170.18M	225.95M	159.87M	135.28M	187.47M
Total Debt	1.52B	1.29B	1.70B	1.26B	1.10B	504.78M
Total Liabilities	2.70B	2.40B	2.91B	2.41B	2.08B	1.28B
Stockholders Equity	1.71B	1.68B	1.71B	1.13B	981.60M	895.26M
Cash Flow
Free Cash Flow	147.22M	-67.68M	-52.26M	47.50M	162.90M	153.59M
Operating Cash Flow	216.95M	20.78M	25.77M	127.80M	216.16M	185.16M
Investing Cash Flow	-269.29M	-341.98M	-268.44M	-109.02M	-797.47M	-88.13M
Financing Cash Flow	48.13M	330.92M	290.28M	4.88M	531.53M	-259.12M

ATS Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.80
• 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 34.8 is below the 20-day moving average (MA) of 37.71, below the 50-day MA of 37.50, and below the 200-day MA of 38.81, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 5.27 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
SIS	78 Outperform	C$1.55B	27.89	10.22%	2.51%	3.93%	33.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REKO	59 Neutral	C$22.39M	21.48	2.50%	―	-4.79%	―
VLN	58 Neutral	C$359.40M	-2.71	-27.70%	2.55%	-18.71%	-845.27%
BLDP	54 Neutral	$1.24B	―	-18.07%	―	1.18%	62.71%
ATS	48 Neutral	C$3.69B	-92.61	-0.27%	―	-5.59%	-104.09%
PYR	41 Neutral	C$41.35M	-3.77	―	―	-6.83%	46.97%

ATS Corporation Corporate Events

ATS Corporation’s Earnings Call Highlights Robust Growth

The recent earnings call for ATS Corporation painted a picture of balanced performance, characterized by robust revenue growth and an increase in adjusted earnings. However, this was tempered by a slight decline in order bookings and rising SG&A expenses. The Energy segment’s significant growth and a strong backlog in Life Sciences were highlighted as positive aspects, while restructuring costs and challenges in lab research funding posed some concerns.

ATS Corporation to Engage with Investors at Scotiabank Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the Scotiabank Transportation & Industrials Conference in Toronto on November 18, 2025. The company will host a fireside chat and conduct institutional investor meetings, emphasizing its active engagement with the investment community. This participation underscores ATS’s commitment to maintaining strong investor relations and highlights its strategic positioning within the automation solutions industry.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 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 Stakeholders at Scotiabank Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the Scotiabank Transportation & Industrials Conference in Toronto on November 18, 2025. The company will host a fireside chat and institutional investor meetings, highlighting its engagement with stakeholders and commitment to maintaining a strong presence in the automation solutions industry.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Reports Strong Q3 2025 Financial Results

ATS Corporation reported its financial results for the quarter ended September 28, 2025, showing a significant increase in revenues and net income compared to the previous year. Revenues rose by 18.9% to $728.5 million, while net income surged to $33.6 million from a loss of $0.9 million in the same quarter last year. The company’s strategic focus on building, growing, and expanding its operations has contributed to these positive results, reflecting improved performance and market positioning.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Present at Baird 2025 Global Industrial Conference

On October 30, 2025, ATS Corporation announced its participation in the Baird 2025 Global Industrial Conference in Chicago, scheduled for November 11, 2025. Interim CEO Ryan McLeod and Interim CFO Anne Cybulski will represent the company, hosting a presentation and engaging in institutional investor meetings. This participation underscores ATS’s active engagement with the industrial sector and its commitment to maintaining strong investor relations.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Showcase at Baird 2025 Global Industrial Conference

ATS Corporation announced its participation in the Baird 2025 Global Industrial Conference in Chicago, where interim CEO Ryan McLeod and interim CFO Anne Cybulski will represent the company. This event presents an opportunity for ATS to showcase its capabilities in automation solutions to institutional investors and industry stakeholders, potentially enhancing its market positioning and visibility in the industrial sector.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Announce Q2 2025 Financial Results

ATS Corporation has announced it will release its second quarter financial results for the period ending September 28, 2025, on November 5, 2025, before the market opens. The company will host a conference call and webcast for analysts to discuss the results and provide insights into its operations. This announcement is significant as it provides stakeholders with an opportunity to gauge the company’s financial health and strategic direction in the automation industry.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$52.00 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 Morgan Stanley Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the Morgan Stanley 13th Annual Laguna Conference on September 10, 2025. This participation underscores ATS’s active engagement with institutional investors, potentially enhancing its visibility and investor relations within the automation industry.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$37.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.