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Autoscope Technologies Corporation

AATC
56
Hardware, Equipment & Parts · Technology
Price
$5.43
-0.01 (-0.18%)
Market Cap
$29.9M
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+2.5% over 4y

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

Diluted shares outstanding: 5.4M (2021) → 5.5M (2025)

Autoscope Technologies makes video-based traffic detection systems. Its main product is a camera and software system that watches roads and intersections, counts vehicles, measures traffic speed, and helps control traffic signals automatically. The company sells primarily to state and local governments, transportation departments, and highway agencies across North America.

Autoscope earns money by selling its hardware cameras and software licenses to government customers, often through a network of distributors and resellers. It operates mainly in the United States and Canada, and while it is a small company, it holds a focused niche position in machine-vision traffic detection — a market with relatively few direct competitors. The main growth driver is continued investment in smart city infrastructure and road modernization by governments, but the company's small size and dependence on public-sector budgets means revenue can be lumpy and sensitive to government spending cuts.

Winston Score History

Score breakdown

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Quality

Gross Margin
95.8%
Premium pricing power — 95.8% gross margin
Operating Margin
26.8%
Excellent — 26.8% operating margin
ROCE
4.8%
Weak — 4.8% 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
-33.9%
Shrinking sales (-33.9% YoY)
EPS YoY
-69.4%
Earnings shrinking (-69.4% YoY)

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

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
333%
Turns 333% of profit into real cash
FCF Margin
47.6%
Converts sales into free cash efficiently (47.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.15
Conservative — low debt load (0.15)
Interest Cover
39.30x
Comfortably covers interest (39.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
21.4x
Growth-priced — P/E 21.4

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
11.43%
Healthy income — 11.43% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth
-60.0%
Dividend cut (-60.0% YoY) — warning sign

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