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ATS Corporation (ATS) AI Stock Analysis
ATS Corporation
(TSX:ATS)
The score is held back primarily by weak technicals (price well below key moving averages and negative MACD) and a high P/E valuation, while financial performance is only moderate due to low and volatile profitability despite improved leverage and currently positive (but uneven) free cash flow. The latest earnings call adds some support via backlog visibility and a credible cost-transformation plan, but near-term declines in revenue, bookings, and operating earnings keep sentiment cautious.
ATS Corporation (ATS) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 2.51B
- Dividend Yield
- ―
- Average Volume (3M)
- 443.69K
- Price to Earnings (P/E)
- 52.6
- Beta (1Y)
- 1.10
- Revenue Growth
- 13.75%
- EPS Growth
- ―
- Country
- Canada
- Employees
- 7,000
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
ATS Corporation Business Overview & Revenue Model
Company Description
ATS Corporation, operating globally through its subsidiaries, delivers comprehensive automation solutions. The company's expertise spans the entire lifecycle of automated manufacturing and assembly systems, encompassing planning, design, construction...
How the Company Makes Money
ATS primarily makes money by delivering customized automation and testing systems and by providing services and support associated with those systems. Key revenue streams typically include: (1) engineered-to-order systems and projects—revenue earned...
ATS Corporation Earnings Call Summary
The call balanced clear near‑term challenges (revenue and operating earnings declines, restructuring and noncash charges, and quarter-to-quarter lumpiness in bookings) with several constructive elements: strong aftermarket services growth, improving gross margin, a healthy $1.9B backlog concentrated in regulated markets, a defined 18‑month cost transformation program targeting meaningful annualized savings, and a stable leverage position. Management emphasized execution discipline, a data‑driven portfolio review, and confidence in reaching a 15% operating margin over time, but acknowledged short‑term execution and timing risks that will determine near‑term results.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided Q2 revenues of $660–700 million and reiterated FY‑27 CapEx/intangible investment of $70–90 million, noting Q1 results of $698M adjusted revenue (‑5.2% YoY), $656M bookings (‑5.3%), ≈$1.9B backlog, $68.1M adjusted earnings from operations (‑13.4% YoY), $0.35 adjusted EPS, 30.0% gross margin (up 18 bps YoY), and an L12M life‑sciences book‑to‑bill (ex‑GLP‑1) of ~1.1x with service revenues up 11% YoY; Q1 incurred $5.7M of restructuring (vs. $10–15M expected), $21.5M of noncash write‑downs, $10M cash used in operations, $15.6M of Q1 CapEx, noncash working capital at 14.3% of revenues (target ≤15%), and net debt/adjusted EBITDA of 2.9x (target 2–3x). Management laid out an ~18‑month fixed‑cost transformation expected to yield an initial ≈$20M annualized savings (≈30% of the program) and roughly $65–70M+ total run‑rate savings (about half the gap to the 15% operating‑margin goal, with the remaining improvement to come from higher‑margin services, ABM and commercial actions), and said margins should strengthen in H2 as backlog converts.
ATS Corporation Financial Statement Overview
Summary
Mid-range fundamentals: revenue is slightly down TTM (-1.45%) and margins are compressed (net margin ~1.6%, EBIT margin ~5.8%) with notable earnings volatility. Balance sheet leverage has improved (debt-to-equity ~0.77) but ROE is low (~2.7%). Cash flow is currently positive (TTM FCF ~$234M) yet uneven, with sharp TTM FCF decline (-40%) and a history of volatility.
Income Statement
56NeutralBalance Sheet
63PositiveCash Flow
60Neutral| Breakdown | TTM | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.93B | 2.97B | 2.53B | 2.58B | 2.18B | 1.43B |
| Gross Profit | 821.08M | 850.87M | 646.65M | 725.81M | 612.43M | 384.26M |
| EBITDA | 337.27M | 363.61M | 167.97M | 349.94M | 302.54M | 192.15M |
| Net Income | 47.21M | 71.64M | -28.05M | 127.43M | 122.10M | 64.09M |
Balance Sheet | ||||||
| Total Assets | 4.28B | 4.34B | 4.62B | 3.54B | 3.07B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 198.93M | 284.96M | 225.95M | 159.87M | 135.28M | 187.47M |
| Total Debt | 1.39B | 1.44B | 1.70B | 1.26B | 1.10B | 504.78M |
| Total Liabilities | 2.48B | 2.56B | 2.91B | 2.41B | 2.08B | 1.28B |
| Stockholders Equity | 1.80B | 1.78B | 1.71B | 1.13B | 981.60M | 895.26M |
Cash Flow | ||||||
| Free Cash Flow | 234.50M | 371.61M | -52.26M | 47.50M | 162.90M | 153.59M |
| Operating Cash Flow | 282.25M | 448.38M | 25.77M | 127.80M | 216.16M | 185.16M |
| Investing Cash Flow | -74.36M | -76.04M | -268.44M | -109.02M | -797.47M | -88.13M |
| Financing Cash Flow | -200.14M | -313.08M | 290.28M | 4.88M | 531.53M | -259.12M |
ATS Corporation Technical Analysis
Price Trends
Market Momentum
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 25.63 is below the 20-day moving average (MA) of 25.98, below the 50-day MA of 26.42, and below the 200-day MA of 37.01, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ATS.
ATS Corporation Peers Comparison
Overall Rating
TSE:SIS69Neutral
TSE:PYR56Neutral- TSE:ATS53Neutral
TSE:DYA45Neutral
TSE:VLN45Neutral
TSE:BLDP44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:SIS | 69Neutral | CAD 2.05B | 23.05 | 13.41% | 1.99% | 7.23% | 58.03% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:PYR | 56Neutral | CAD 45.27M | -4.07 | 112.32% | ― | 11.62% | 16.81% |
| TSE:ATS | 53Neutral | CAD 2.51B | 52.64 | 2.66% | ― | 13.75% | ― |
| TSE:DYA | 45Neutral | CAD 49.81M | -5.05 | 718.52% | ― | -57.68% | 24.90% |
| TSE:VLN | 45Neutral | CAD 374.29M | -10.52 | -14.80% | 3.23% | -9.05% | 73.48% |
| TSE:BLDP | 44Neutral | CAD 768.89M | -6.13 | -13.16% | ― | 45.07% | 73.98% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:ATS | Ats Corporation | 25.63 | -12.30 | -32.43% | |
| TSE:BLDP | Ballard Power | 2.19 | -2.82 | -56.29% | |
| TSE:DYA | dynaCERT Inc | 0.10 | -0.03 | -24.62% | |
| TSE:PYR | PyroGenesis Canada | 0.20 | -0.03 | -13.04% | |
| TSE:SIS | Savaria Corp. | 28.35 | 6.68 | 30.84% | |
| TSE:VLN | Velan Inc. SV | 17.34 | 0.61 | 3.62% |
ATS Corporation Corporate Events
ATS Highlights Investor Outreach and Share Buybacks Ahead of Jefferies Industrials Conference
PositiveATS Corporation will showcase its leadership in automation solutions at the Jefferies Industrials Conference in New York on September 10, where interim CFO Anne Cybulski and Life Sciences group executive Sarah Moore will host a fireside chat and meet...
ATS Shareholders Back Board Slate as Buyback Program Advances
PositiveATS Corporation reported that all director nominees were elected at its August 6 virtual annual and special meeting, with each candidate receiving strong shareholder support and overall meeting participation representing 88.12% of common shares. The...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 10, 2026