ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$3.70B
• Dividend Yield: N/A
• Average Volume (3M): 190.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -13.38%
• EPS Growth: -122.14%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 97,653,244
• 10 Day Avg. Volume: 163,690
• 30 Day Avg. Volume: 190,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$47.83
• Price Target Upside: 25.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 40 Underperform
• Price Target: C$36.00 ▼(-5.31% Downside)

ATS Corporation's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. The company's profitability and cash flow issues, combined with negative valuation metrics, weigh heavily on the score. While the earnings call highlighted some positive aspects, such as revenue growth and a strong order backlog, these are not sufficient to offset the broader financial and technical challenges.

Positive Factors

Strong Order Backlog

A robust order backlog provides revenue visibility and a stable foundation for future growth, enhancing long-term business stability.

Life Sciences Success

Significant backlog in Life Sciences indicates strong demand in high-growth markets, supporting sustained revenue expansion.

Nuclear Energy Opportunities

Engagement in nuclear energy projects positions ATS to benefit from structural industry trends towards sustainable energy solutions.

Negative Factors

Profitability Challenges

Ongoing profitability issues, as indicated by negative margins, could hinder long-term financial health and investment capacity.

Cash Flow Difficulties

Weak cash generation impacts the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

Decline in Order Bookings

A decline in order bookings suggests potential future revenue pressures, particularly if the trend continues, impacting growth prospects.

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

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ATS Corporation Financial Statement Overview

Summary

ATS Corporation faces significant financial challenges, with declining revenues, increased leverage, and cash flow constraints. The negative net profit margin and increased debt-to-equity ratio highlight financial instability, requiring strategic adjustments to stabilize operations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.53B	3.03B	2.58B	2.18B	1.43B
Gross Profit	659.85M	646.65M	855.50M	725.81M	612.43M	384.26M
EBITDA	157.86M	167.97M	458.54M	349.94M	302.54M	192.15M
Net Income	-39.21M	-28.05M	193.74M	127.43M	122.10M	64.09M
Balance Sheet
Total Assets	4.41B	4.62B	4.09B	3.54B	3.07B	2.20B
Cash, Cash Equivalents and Short-Term Investments	188.61M	225.95M	170.18M	159.87M	135.28M	187.47M
Total Debt	1.52B	1.70B	1.29B	1.26B	1.10B	504.78M
Total Liabilities	2.70B	2.91B	2.40B	2.41B	2.08B	1.28B
Stockholders Equity	1.71B	1.71B	1.68B	1.13B	981.60M	895.26M
Cash Flow
Free Cash Flow	147.22M	-52.26M	-67.68M	47.50M	162.90M	153.59M
Operating Cash Flow	216.95M	25.77M	20.78M	127.80M	216.16M	185.16M
Investing Cash Flow	-269.29M	-268.44M	-341.98M	-109.02M	-797.47M	-88.13M
Financing Cash Flow	48.13M	290.28M	330.92M	4.88M	531.53M	-259.12M

ATS Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Neutral. The current price of 38.02 is above the 20-day moving average (MA) of 37.08, above the 50-day MA of 37.51, and below the 200-day MA of 38.94, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 86.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATS.

ATS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIS	―	C$1.53B	27.60	9.45%	2.48%	3.06%	19.32%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REKO	―	C$22.50M	21.73	―	―	-4.80%	―
VLN	―	C$336.95M	―	-27.70%	0.19%	-18.71%	-845.27%
BLDP	―	$1.45B	―	-38.04%	―	-28.34%	-61.59%
ATS	―	C$3.70B	-92.93	-2.31%	―	-13.38%	-122.14%
PYR	―	C$46.05M	―	―	―	0.58%	45.10%

ATS Corporation Corporate Events

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.

ATS Corporation to Engage at Jefferies Industrials Conference

ATS Corporation announced its participation in the Jefferies Industrials Conference in New York City on September 4, 2025, where interim CEO Ryan McLeod and interim CFO Anne Cybulski will host a fireside chat and meet with institutional investors. This participation underscores ATS’s strategic engagement with investors and stakeholders, potentially enhancing its visibility and influence in the automation industry.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 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 Global Industrials Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the RBC Capital Markets Global Industrials Conference in New York City on September 16, 2025. This participation underscores ATS’s active engagement with institutional investors and highlights its strategic positioning in the automation industry, potentially impacting its market presence and stakeholder relations.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 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 in Raymond James Industrial Showcase

On August 8, 2025, ATS Corporation announced its participation in the Raymond James Industrial Showcase, scheduled for August 13, 2025. Interim CEO Ryan McLeod and Interim CFO Anne Cybulski will represent the company, hosting institutional investor meetings. This engagement underscores ATS’s proactive approach in maintaining investor relations and enhancing its visibility in the industrial sector.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 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 Raymond James Industrial Showcase

ATS Corporation announced its participation in the Raymond James Industrial Showcase, where interim CEO Ryan McLeod and interim CFO Anne Cybulski will engage with institutional investors. This involvement highlights ATS’s ongoing efforts to strengthen investor relations and showcase its capabilities in the automation industry, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation’s Earnings Call: Growth Amid Challenges

The recent earnings call of ATS Corporation presented a balanced sentiment, highlighting both growth and challenges. The company reported steady revenue growth and a significant order backlog, particularly in the Life Sciences and Energy sectors. However, a decline in order bookings and organic revenue, coupled with challenges in the transportation sector and increased expenses, tempered the overall performance, resulting in a neutral outlook.

ATS Corporation Elects New Board of Directors

ATS Corporation announced the election of its board of directors during its virtual Annual Meeting of Shareholders. The meeting saw a high participation rate, with 90.07% of common shares represented. All nominees listed in the management information circular were elected, with Michael Martino confirmed as the new Chair of the Board of Directors. This leadership change is expected to influence the company’s strategic direction and reinforce its position in the automation industry.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Reports Q1 Fiscal 2026 Results Amid Leadership Transition

ATS Corporation reported a 6.1% increase in revenues for the first quarter of fiscal 2026, reaching $736.7 million. Despite the revenue growth, net income decreased to $24.3 million, and order bookings fell by 15.2% compared to the previous year. The company is undergoing a leadership transition with CEO Andrew Hider stepping down, and CFO Ryan McLeod taking over as Interim CEO. The leadership team, including newly appointed Interim CFO Anne Cybulski, aims to continue executing the company’s value creation strategy during this period.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Schedules Q1 Results Release and Annual Shareholders Meeting for August 7, 2025

On July 23, 2025, ATS Corporation announced that it will release its first quarter financial results for the period ending June 29, 2025, on August 7, 2025, before the markets open. The company will host a conference call and webcast at 8:30 a.m. Eastern on the same day to discuss the results, followed by a question and answer session with analysts. Additionally, ATS will hold its Annual Meeting of Shareholders virtually on August 7, 2025, at 10:30 a.m. Eastern. These events are significant as they provide stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.