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ATS Corporation
(TSX:ATS)
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Rating:53Neutral
Price Target:
C$30.00
▲(10.09% Upside)
Action:Reiterated
Date:08/10/26
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.
Positive Factors
Backlog in regulated markets
The sizable backlog provides multi-quarter revenue visibility and is concentrated in regulated, higher-value markets. This supports customer relationships, project continuity and longer-term demand resilience beyond individual quarterly awards.
Negative Factors
Declining revenue and bookings
Lower revenue and bookings indicate weaker near-term demand conversion and can reduce operating leverage in a project-based model. Slippage of customer orders also increases dependence on backlog execution and future award timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog in regulated markets
The sizable backlog provides multi-quarter revenue visibility and is concentrated in regulated, higher-value markets. This supports customer relationships, project continuity and longer-term demand resilience beyond individual quarterly awards.
Read all positive factors
ATS Corporation (ATS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.66B
Dividend YieldN/A
Average Volume (3M)478.79K
Price to Earnings (P/E)55.8
Beta (1Y)1.17
Revenue Growth13.75%
EPS GrowthN/A
CountryCA
Employees7,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.49
Shares Outstanding98,126,890
10 Day Avg. Volume342,708
30 Day Avg. Volume478,787
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)2.16
Price to Sales (P/S)1.29
P/FCF Ratio10.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$44.63Price Target Upside63.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.68
Revenue Forecast (FY)C$2.89B
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, construct...
How the Company Makes Money
ATS primarily makes money by delivering industrial automation projects and related services to manufacturing customers. Key revenue streams typically include: (1) Project-based revenue from the design and build of custom automation systems, produc...
ATS Corporation Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Radiopharma Momentum and Life Sciences Strength
Trailing 12-month book-to-bill in life sciences (ex-GLP-1) ~1.1x driven by radiopharma; radiopharma backlog noted as roughly twice the GLP-1 backlog and positioned as a fast-growing, high-value end market with multi‑million to triple‑digit million addressable opportunity per site.
Negative Updates
Revenue Decline
Q1 adjusted revenues were $698 million, down 5.2% year-over-year, attributed to a lower opening order backlog, timing of project execution and a planned reduction in large-scale automotive/transportation work.
Read all updates
Q1-2027 Updates
Positive
Negative
Radiopharma Momentum and Life Sciences Strength
Trailing 12-month book-to-bill in life sciences (ex-GLP-1) ~1.1x driven by radiopharma; radiopharma backlog noted as roughly twice the GLP-1 backlog and positioned as a fast-growing, high-value end market with multi‑million to triple‑digit million addressable opportunity per site.
Read all positive 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
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| 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 | 327.42M | 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
Negative
27.25
Price Trends
33.72
Negative
38.35
Negative
39.17
Negative
Market Momentum
-2.04
Negative
37.55
Neutral
53.71
Neutral
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 27.25 is above the 20-day moving average (MA) of 27.18, below the 50-day MA of 33.72, and below the 200-day MA of 39.17, indicating a bearish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 53.71 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$2.04B | 23.00 | 13.41% | 1.98% | 7.23% | 58.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | C$2.66B | 55.76 | 2.66% | ― | 13.75% | ― | |
51 Neutral | C$393.94M | -23.69 | -7.22% | 3.07% | -14.82% | 86.51% | |
50 Neutral | C$47.54M | -4.28 | 112.32% | ― | 11.62% | 16.81% | |
44 Neutral | C$979.90M | -9.13 | -13.16% | ― | 45.07% | 73.98% | |
42 Neutral | C$55.91M | -5.70 | 718.52% | ― | -57.68% | 24.90% |
* Industrials Sector Average
TSE:ATS
ATS Corporation
27.15
-10.91
-28.67%
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ATS Corporation Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
ATS Shareholders Back Board Slate as Buyback Program Advances
Positive
Aug 11, 2026
ATS 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. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.