ATS Corporation

ATS

Industrial - Machinery · Industrials

Price

$27.58

-0.21 (-0.76%)

Market Cap

$2.71B

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+6.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 92.6M (2022) → 98.1M (2026)

ATS Corporation is a Canadian industrial automation company that builds custom factory systems for other businesses. It designs and assembles automated production lines — including robots, conveyor systems, and testing equipment — used by manufacturers in life sciences (like medical devices and pharmaceuticals), electric vehicles, food and beverage, and consumer products. ATS is one of the larger automation integrators in North America.

ATS makes money by taking on large engineering contracts to design, build, and install these automation systems, then earning additional revenue from ongoing maintenance and service agreements. The company operates across North America, Europe, and Asia, generating roughly $2.5–3 billion in annual revenue. Its competitive edge comes from deep expertise in regulated industries like medical devices, where customers need highly precise and validated production systems. The main growth driver is rising demand for factory automation globally, but the business is exposed to cyclical swings in capital spending, meaning customers can delay or cancel large projects during economic downturns.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+77.5% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.5%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$285M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

ATS Corporation grew revenue 30% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

25.2%

Modest — 25.2% gross margin

Operating Margin

3.1%

Thin — 3.1% operating margin

ROCE

0.8%

Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+0.6%

Nearly flat sales (0.6% YoY)

EPS YoY

-127.6%

Earnings shrinking (-127.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

9.4%

Modest free cash flow (9.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.72

Moderate — manageable debt (0.72)

Interest Cover

0.47x

Dangerous — barely covers interest (0.5x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

36.9x

Pricey — P/E 36.9

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+16.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (36.9 → 20.1)

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Dividends

Not applicable for this business.

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