ATS Corporation Common Shares (ATS)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell below conservative value. ATS designs, builds, and services factory automation systems, a real industrial niche with 7,000 employees and aftermarket support such as training, spare parts, and retrofits. But the numbers are not yet those of a high-quality compounder. In the second quarter of fiscal 2026, revenue was $693.7M and net income was -$309,000, a -0.04% margin. That is the latest filed quarter given, and it tells me profitability is fragile. At the 2026-10-13 close of $17.62, FairStock calculations put the P/E at 51.82, P/B at 1.33, ROE at 2.69%, and ROCE at 2.92%. Those returns are thin for the price. Debt to equity is 0.78, and FairStock's Piotroski F-Score is 3/9 and Altman Z-Score is 1.39, which suggest financial fragility. The Graham Number is $11.92, so the margin of safety is -47.82%; by Graham's arithmetic, the shares are not cheap. Free cash flow is a genuine positive: $206.1M trailing twelve months, a 6.3% FCF yield. FairStock's PEG ratio of 0.68 and EV/EBITDA of 13.41 give some growth hope, but the Lynch category is none because there are only 0 years of filed results and 3 are needed. The moat may come from switching costs and service stickiness, but weak ROE/ROCE and a negative quarter do not prove pricing power. I would want consistent profits and a safer balance sheet before calling this a value opportunity.

In plain English: ATS builds and services automated manufacturing and assembly systems for factories around the world, with about 7,000 employees. The business is growing sales, but profits are very thin and the latest quarter showed a small loss. At the current price, the stock looks expensive compared with its earnings and conservative asset value, though it does generate solid cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer