ATS Corporation Common Shares (ATS)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Generates $353 million in annual free cash flow (10.8% yield on market cap)
• Revenue growth of 16.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($8) with negative 345% margin of safety—limited downside protection
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

ATS Corporation Common Shares is a small-cap industrials company valued at $3.3 billion. The business generates $2.8 billion in annual revenue with a 1.1% net margin and $353 million in free cash flow. From a quality standpoint, ATS shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 242.9x multiple, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 16.7% and profit growth of 366.9%. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

ATS's 17% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $353 million in annual free cash flow (10.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 243x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer