ATS Automation (ATS-T)

ATS is an industry-leading automation solutions provider to many of the world's most successful companies. It uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products, and value-added services to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, food & beverage, transportation, consumer products, and energy. Founded in 1978, ATS employs over 6,000 people at more than 50 manufacturing facilities and over 75 offices in North America, Europe, Southeast Asia, and China.Results for the 2nd quarter ended October 2, 2022, were not spectacular. While revenues at $588.9 million were up 12.8 % over the comparable prior year period, net earnings at $29.5 million were basically flat due largely to higher finance costs ($6.2 million, to finance the acquisition of SP) and income taxes ($3.1 million). Adjusted EBITDA at $88.8 million was up 6.6%. Cash at the end of the quarter amounted to $95.2 million after utilizing $44.7 million during the period primarily due to changes in non-cash working capital. The debt-equity ratio is 1.26. With a large backlog ($1.8 billion), established operations and markets as well as experienced management ATS should find opportunities ahead.
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Great chart. 
Good time to buy.
Would suggest buying.

Machinery companies are doing well and automation is here to stay. Has sold equipment to companies like Amazon. Its business is also in health care, consumer products and now EV. It also benefits from the re-shoring of manufacturing in North America.

Good Canadian company.
Will perform well over the long term.
Has out performed the market the past few years.
Automation demand growing. 
Multiples a little high, but deserves success.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Long-term demand for automation. Operates in a cyclical business. Heavier exposure to non-cyclical segments. Diverse supply base. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is sensitive to broad economic growth and is likely why the shares are dragging down. Trading at 16x forward earnings and good growth is expected. Risks are most likely already priced in. Cost pressures and slowdowns are possible, but many companies, including ATA will manage through them. Unlock Premium - Try 5i Free

Recent selloff on stock has created buying opportunity. As Covid-19 passes, business will be well positioned. Automation services will be highly valued going forward.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock is up more than 100% in the past year. It has slightly declined but it is more on sell on news right now. EPS estimates beat last quarter. Backlog is nearly $1.5B and sales are climbing 48%. A solid quarter. Unlock Premium - Try 5i Free