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Investor Insights

This summary was created by AI, based on 11 opinions in the last 12 months.

Experts have varying opinions on ATS Automation Tooling Systems. Some experts view it as a strong business with good long-term potential, citing its experience, opportunities, and backlog. Others point out its expensive valuation, with recurring revenue and good growth prospects but high PE and price to book ratios. There are concerns about market sentiment affecting industrial orders and valuation multiples. The company's recent financial results were mixed, with higher revenues but flat net earnings due to increased finance costs and taxes. Overall, the company is seen as well-run with potential in high-growth niche areas such as battery production, health sciences, and automation solutions.

Consensus
Mixed
Valuation
Overvalued
DON'T BUY

AI is a really hot theme that's being chased. Operating fundamentals not as strong as he would have thought, in terms of profit margins, ROC and free cashflow. Avoid. Better businesses out there. Better way to play is through chips or sensors, such as TSM or TEL. 

misc industrial products
PAST TOP PICK
(A Top Pick Feb 27/23, Up 7%)

Automation is here to stay. They have great experience and lots of opportunities.

misc industrial products
BUY

Strong business with automation business. Good for long term investors. Current share price a good place to buy. Expecting 29% growth rate for the next few years. Good time to buy. 

misc industrial products
BUY ON WEAKNESS

Likes it, but always looks so expensive. Fairly good recurring revenue. Margins have held up well. Not bad for growth. PE of 35x, price to book of 3.5x, expensive.

misc industrial products
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ATS share price has been under pressure recently along with the broad market, as the market sentiment factors in the scenario that interest rates may stay higher for longer, which not only impacts growth in orders for industrial space such as ATS, but also the valuation multiple that investors are willing to pay for high-growth name such as ATS. Having said that, ATS’s valuation is still attractive, in our view. ATS has been well-run over the years, and it has a decent backlog and fairly visible growth. Its recent acquisitions also look good. 'Future' orders might be impacted in a recession, but we would say that pretty much anytime.
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misc industrial products
Unspecified

It designs, makes and installs automatic manufacturing systems globally and has a huge backlog. It is well known in the life sciences field which is a big part of its business. It also has a specialized battery division, is involved with nuclear reactors, consumer products, transportation, etc. It is M&A driven and makes selective acquisitions.

misc industrial products
BUY

One of the best performers this year. Keeps announcing more contracts, backlog's growing. Focused on life sciences and EV assembly plants. Picking high-growth niche areas. Not cheap, but the sky's the limit.

misc industrial products
BUY ON WEAKNESS

Pullbacks don't last long on this stock. Sweet spot. High-growth areas such as battery production and health sciences, where they provide turnkey solutions. Not cheap. Buy it on a dip and put it away.

misc industrial products
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

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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misc industrial products
BUY

Great chart. 
Good time to buy.
Would suggest buying.

misc industrial products
TOP PICK

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.

(Analysts’ price target is $64.67)
misc industrial products
BUY ON WEAKNESS

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.

misc industrial products
DON'T BUY
Not recession-tested yet. Earnings excellent quarter after quarter. Theme of reshoring is powerful and will benefit. Price to growth looks good. Only issue is recession or supply chain inflation. Better opportunities out there.
misc industrial products
BUY
Is well-positioned as wages keep rising and there are staffing shortages. Has a sound balance sheet. Has enjoyed a recent upgrade. Good for the long term, and defensive in the short term.
misc industrial products
HOLD
A core position. Management executes exceptionally well. Record backlog, which should support margins and earnings for the next few quarters. Cheap multiple compared to US peers. In the sweet spot.
misc industrial products
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ATS Automation Tooling Systems(ATS-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 10

Stockchase rating for ATS Automation Tooling Systems is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

ATS Automation Tooling Systems(ATS-T) Frequently Asked Questions

What is ATS Automation Tooling Systems stock symbol?

ATS Automation Tooling Systems is a Canadian stock, trading under the symbol ATS-T on the Toronto Stock Exchange (ATS-CT). It is usually referred to as TSX:ATS or ATS-T

Is ATS Automation Tooling Systems a buy or a sell?

In the last year, 10 stock analysts published opinions about ATS-T. 8 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for ATS Automation Tooling Systems.

Is ATS Automation Tooling Systems a good investment or a top pick?

ATS Automation Tooling Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for ATS Automation Tooling Systems.

Why is ATS Automation Tooling Systems stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is ATS Automation Tooling Systems worth watching?

10 stock analysts on Stockchase covered ATS Automation Tooling Systems In the last year. It is a trending stock that is worth watching.

What is ATS Automation Tooling Systems stock price?

On 2024-02-23, ATS Automation Tooling Systems (ATS-T) stock closed at a price of $50.24.