ATS Corp /ATS (NYSE: ATS)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001394832
Market Cap 3.14 Bn
P/B 2.44
P/E 229.66
P/S 1.55
ROIC (Qtr) 2.89
Div Yield % 0.00
Rev 1y % (Qtr) 21.74
Total Debt (Qtr) 1.09 Bn
Debt/Equity (Qtr) 0.84
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About

Investment thesis

Bull case

  • Healthy cash reserves of 190.64M provide 7.25x coverage of short-term debt 26.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 216.58M provides exceptional 1844.94x coverage of minority interest expenses 117391.30, showing strong core operations.
  • Operating cash flow of 216.58M provides strong 71.49x coverage of stock compensation 3.03M, indicating sustainable incentive practices.
  • Robust free cash flow of 201.15M exceeds capital expenditure of 15.43M by 13.03x, indicating strong organic growth funding capability.
  • Tangible assets of 1.72B provide exceptional 7.26x coverage of deferred revenue 237.60M, showing strong service capability backing.

Bear case

  • Operating cash flow of 216.58M barely covers its investment activities of (37.14M), with a coverage ratio of -5.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 216.58M provides insufficient coverage of deferred revenue obligations of 237.60M, which is 0.91x, raising concerns about future service delivery capabilities.
  • High receivables of 476.09M relative to inventory of 223.29M (2.13 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 216.58M provides minimal -7x coverage of tax expenses of (30.96M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 55.78M show weak coverage of depreciation charges of 112.38M, with a 0.50 ratio indicating high capital intensity and potential reinvestment needs.

Geographical areas [axis] Breakdown of Revenue (2025)

Markets of customers [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.95 2.28
EV to Cash from Ops. EV/CFO 14.20 37.14
EV to Debt EV to Debt 2.83 34.39
EV to EBIT EV/EBIT 55.15 27.71
EV to EBITDA EV/EBITDA 18.28 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 15.29 133.36
EV to Market Cap EV to Market Cap 0.98 1.04
EV to Revenue EV/Rev 1.52 39.88
Price to Book Value [P/B] P/B 2.44 6.22
Price to Earnings [P/E] P/E 229.66 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 0.76 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.94 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.32 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -140.87 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.49 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -59.32 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -121.97 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -78.21 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 938.82 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.17 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.62
Cash Payout Ratio Cash Payout Ratio 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.24 3.01
Current Ratio Curr Ratio (Qtr) 1.65 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.84 0.38
Interest Cover Ratio Int Coverage (Qtr) 0.76 12.34
Times Interest Earned Times Interest Earned (Qtr) 0.76 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.30 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 3.79 -7,413.30
EBT Margin % EBT Margin % (Qtr) -0.85 -9,015.79
Gross Margin % Gross Margin % (Qtr) 25.90 -32.61
Net Profit Margin % Net Margin % (Qtr) 0.70 -7,962.06