ATS Corporation
ATS Corporation Fundamental Analysis
ATS Corporation (ATS) shows weak financial fundamentals with a PE ratio of 232.37, profit margin of 0.67%, and ROE of 1.09%. The company generates $2.8B in annual revenue with weak year-over-year growth of -16.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 8.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ATS's fundamental strength across five key dimensions:
Efficiency Score
WeakATS struggles to generate sufficient returns from assets.
Valuation Score
ModerateATS shows balanced valuation metrics.
Growth Score
WeakATS faces weak or negative growth trends.
Financial Health Score
ExcellentATS maintains a strong and stable balance sheet.
Profitability Score
ModerateATS maintains healthy but balanced margins.
Key Financial Metrics
Is ATS Expensive or Cheap?
P/E Ratio
ATS trades at 232.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ATS's PEG of 0.38 indicates potential undervaluation.
Price to Book
The market values ATS Corporation at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.42 times EBITDA. This signals the market has high growth expectations.
How Well Does ATS Make Money?
Net Profit Margin
For every $100 in sales, ATS Corporation keeps $0.67 as profit after all expenses.
Operating Margin
Core operations generate 2.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.09 in profit for every $100 of shareholder equity.
ROA
ATS Corporation generates $0.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ATS Corporation produces operating cash flow of $338.12M, showing steady but balanced cash generation.
Free Cash Flow
ATS Corporation produces free cash flow of $278.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.84 in free cash annually.
FCF Yield
ATS converts 6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
232.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ATS Stacks Against Its Sector Peers
| Metric | ATS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 232.37 | 26.76 | Worse (Expensive) |
| ROE | 1.09% | 1300.00% | Weak |
| Net Margin | 0.67% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.90 | 0.79 | Neutral |
| Current Ratio | 1.65 | 10.68 | Neutral |
| ROA | 0.42% | -1545134.00% (disorted) | Weak |
ATS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ATS Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-149.84%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
19.06%
Industry Style: Cyclical, Value, Infrastructure
High Growth