# Ats (ATS.TO)

Canonical: https://gigainvestors.com/s/ATS.TO

Analysis as of: 2026-10-16T07:41:28.540Z. Financial observations: FY1997–FY2027.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 25.68 per share; close as of 2026-10-15.

Estimated value: low CAD 20.83 per share, central CAD 23.50 per share, high CAD 27.06 per share. Buy at or below the central value CAD 23.50 per share. Valuation as of 2026-10-16T07:41:28.540Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.35×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.07×

- FY2021: 0.08×

- FY2022: 0.09×

- FY2023: 0.09×

- FY2024: 0.10×

- FY2025: 0.00×

- FY2026: 0.07×

- LTM to Jun 2026: 0.07×

### moat: pass

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: 10.5%

- Typical minus recent gross margin: -1.7 pp

- Typical gross margin (annual median): 26.5%

- Recent gross margin (lower of latest and 3-year median): 28.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 7.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 17.8%

- FY2018: 22.8%

- FY2019: 23.9%

- FY2020: 13.2%

- FY2021: 17.8%

- FY2022: 15.9%

- FY2023: 16.1%

- FY2024: 15.8%

- FY2025: 0.4%

- FY2026: 10.5%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.42×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 694M

- Net income, five-year total: CAD 487M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 12.3 pp

- Working capital / revenue, final three-year average: 30.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.37×

- FY2023: 1.20×

- FY2024: 1.16×

- FY2025: -0.74×

- FY2026: 1.78×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 22.8% vs 10.5%

- Per-share earnings: 0.43 to 0.73 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: 1.2%

- Market cap gain: CAD 2.6B

- Cumulative retained earnings: CAD 648M

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 1.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.9%

- Per-share value change: CAD 0.30

- Per-share value, starting three-year median: CAD 0.43

- Per-share value, ending three-year median: CAD 0.73

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.9%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: CAD 1.6B

- Cumulative net income, 10 years: CAD 757M

- ROIC, first three-year median: 22.8%

- ROIC, last three-year median: 10.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: CAD 0.37

- FY2018: CAD 0.50

- FY2019: CAD 0.76

- FY2020: CAD 0.57

- FY2021: CAD 0.69

- FY2022: CAD 1.32

- FY2023: CAD 1.28

- FY2024: CAD 1.96

- FY2025: CAD -0.29

- FY2026: CAD 0.73

### accounting: pass

- Sloan accruals: -8.7%

- Receivables to sales index (DSRI): 0.66×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.18×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.8%

- FY2018: -0.8%

- FY2019: -3.4%

- FY2020: 1.6%

- FY2021: -5.5%

- FY2022: -3.1%

- FY2023: -0.0%

- FY2024: 4.2%

- FY2025: -1.2%

- FY2026: -8.7%

## Holders

- [Prem Watsa](https://gigainvestors.com/FFH): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 58% since Jun 2023 · sales -1.4%

Story as of 2026-10-16T10:00:11.928Z; price observation 2026-10-15.

Price needs cash profits to grow 2.1% a year for ten years

### Sales · FY2026–2027

sales -1.4%; source https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm; observed 2026-05-28.

- FY2018: CAD 1.1B 

- FY2019: CAD 1.3B 

- FY2020: CAD 1.4B 

- FY2021: CAD 1.4B 

- FY2022: CAD 2.2B 

- FY2023: CAD 2.6B 

- FY2024: CAD 3.0B 

- FY2025: CAD 2.5B 

- FY2026: CAD 3.0B 

- FY2027: CAD 2.9B 

### Gross margin · FY2026

gross margin 28.6%; source https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm; observed 2026-05-28.

- FY2017: 24.8% 

- FY2018: 25.8% 

- FY2019: 26.2% 

- FY2020: 25.3% 

- FY2021: 26.9% 

- FY2022: 28.1% 

- FY2023: 28.2% 

- FY2024: 28.2% 

- FY2025: 25.5% 

- FY2026: 28.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are CAD 3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm (filed 2026-05-28); FY2026: revenue 2972932000; grossProfit 850865000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ATS.TO: ATS Corporation, together with its subsidiaries, engages in the planning, designing, building, commissioning, and servicing of automated manufacturing and assembly systems worldwide. The company offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modeling; post-automation services, including training, process optimization, preventive maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after-sales services. It also provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products and platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. In addition, the company offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real-time machine performance data to troubleshoot issues, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. It serves the life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

### Why customers stay

Margins ranged from 25.5% to 28.6% during 2024–26; it earns 16% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2024: grossProfit / revenue = 28.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2025: grossProfit / revenue = 25.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm (filed 2026-05-28); FY2026: grossProfit / revenue = 28.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); 10-year return on capital observations [[2017,0.17840500843969292],[2018,0.22756658121166576],[2019,0.23908528817417335],[2020,0.13222721029803738],[2021,0.17819501459356],[2022,0.15897601351353194],[2023,0.16055748921237487],[2024,0.1581990208647598],[2025,0.004095125661123793],[2026,0.10489831232050112]]; median 0.1597667513629534. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 28% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm (filed 2026-05-28); Gross margin observations: [[2021,0.2687014178505397],[2022,0.28058149544810435],[2023,0.28160724207180615]]; range within 2 percentage points.

### Where the cash goes

Paid no dividends in 10 years; bought back CAD 19.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2017: growth capex 0; upkeep 17898000; owner earnings 51658000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2018: growth capex 0; upkeep 25975000; owner earnings 57857000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2019: growth capex 0; upkeep 40920000; owner earnings 72214000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2020: growth capex 0; upkeep 56567000; owner earnings 67733000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2021: growth capex 0; upkeep 31572000; owner earnings 88845800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2022: growth capex 0; upkeep 53266000; owner earnings 167692000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2023: growth capex 0; upkeep 80296000; owner earnings 153176200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2024: growth capex 0; upkeep 88458000; owner earnings 224175200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); FY2025: growth capex 0; upkeep 78030000; owner earnings 20712400. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm (filed 2026-05-28); FY2026: growth capex 0; upkeep 76776000; owner earnings 127796400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm (filed 2026-05-28); FY2026: cash repurchases 19616000 CAD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ATS.TO SharesStats.PercentInsiders = 0.22 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2.1% yearly over ten years; actual growth was 6.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-28); Ten-year compound average after fade. Initial solved rate 0.016783233544092613. Price 25.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.6817743334932124 → FY2026 1.298353340864943. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 11.50 per share

- 2016-11: CAD 10.50 per share

- 2016-12: CAD 12.52 per share

- 2017-01: CAD 13.13 per share

- 2017-02: CAD 13.50 per share

- 2017-03: CAD 13.57 per share

- 2017-04: CAD 13.02 per share

- 2017-05: CAD 12.93 per share

- 2017-06: CAD 13.29 per share

- 2017-07: CAD 13.40 per share

- 2017-08: CAD 12.61 per share

- 2017-09: CAD 13.26 per share

- 2017-10: CAD 14.85 per share

- 2017-11: CAD 16.04 per share

- 2017-12: CAD 15.55 per share

- 2018-01: CAD 16.64 per share

- 2018-02: CAD 17.60 per share

- 2018-03: CAD 17.69 per share

- 2018-04: CAD 17.57 per share

- 2018-05: CAD 20.27 per share

- 2018-06: CAD 19.54 per share

- 2018-07: CAD 19.56 per share

- 2018-08: CAD 22.12 per share

- 2018-09: CAD 24.02 per share

- 2018-10: CAD 19.36 per share

- 2018-11: CAD 17.02 per share

- 2018-12: CAD 14.39 per share

- 2019-01: CAD 16.92 per share

- 2019-02: CAD 18.53 per share

- 2019-03: CAD 19.64 per share

- 2019-04: CAD 21.45 per share

- 2019-05: CAD 20.36 per share

- 2019-06: CAD 21.30 per share

- 2019-07: CAD 21.15 per share

- 2019-08: CAD 18.37 per share

- 2019-09: CAD 18.11 per share

- 2019-10: CAD 17.88 per share

- 2019-11: CAD 19.67 per share

- 2019-12: CAD 21.43 per share

- 2020-01: CAD 20.33 per share

- 2020-02: CAD 17.93 per share

- 2020-03: CAD 16.46 per share

- 2020-04: CAD 20.65 per share

- 2020-05: CAD 20.01 per share

- 2020-06: CAD 19.12 per share

- 2020-07: CAD 17.34 per share

- 2020-08: CAD 18.38 per share

- 2020-09: CAD 17.31 per share

- 2020-10: CAD 16.50 per share

- 2020-11: CAD 21.69 per share

- 2020-12: CAD 22.35 per share

- 2021-01: CAD 21.94 per share

- 2021-02: CAD 28.05 per share

- 2021-03: CAD 26.47 per share

- 2021-04: CAD 29.65 per share

- 2021-05: CAD 29.76 per share

- 2021-06: CAD 35.58 per share

- 2021-07: CAD 37.56 per share

- 2021-08: CAD 45.62 per share

- 2021-09: CAD 40.18 per share

- 2021-10: CAD 42.11 per share

- 2021-11: CAD 47.67 per share

- 2021-12: CAD 50.24 per share

- 2022-01: CAD 51.90 per share

- 2022-02: CAD 49.15 per share

- 2022-03: CAD 45.10 per share

- 2022-04: CAD 37.49 per share

- 2022-05: CAD 37.13 per share

- 2022-06: CAD 35.35 per share

- 2022-07: CAD 40.55 per share

- 2022-08: CAD 40.12 per share

- 2022-09: CAD 36.46 per share

- 2022-10: CAD 43.10 per share

- 2022-11: CAD 44.82 per share

- 2022-12: CAD 42.09 per share

- 2023-01: CAD 53.88 per share

- 2023-02: CAD 55.05 per share

- 2023-03: CAD 56.59 per share

- 2023-04: CAD 58.08 per share

- 2023-05: CAD 59.45 per share

- 2023-06: CAD 60.95 per share

- 2023-07: CAD 59.80 per share

- 2023-08: CAD 60.62 per share

- 2023-09: CAD 57.90 per share

- 2023-10: CAD 46.70 per share

- 2023-11: CAD 53.41 per share

- 2023-12: CAD 57.11 per share

- 2024-01: CAD 57.51 per share

- 2024-02: CAD 51.14 per share

- 2024-03: CAD 45.58 per share

- 2024-04: CAD 45.29 per share

- 2024-05: CAD 43.42 per share

- 2024-06: CAD 44.27 per share

- 2024-07: CAD 41.49 per share

- 2024-08: CAD 36.20 per share

- 2024-09: CAD 39.24 per share

- 2024-10: CAD 41.73 per share

- 2024-11: CAD 45.86 per share

- 2024-12: CAD 43.84 per share

- 2025-01: CAD 39.31 per share

- 2025-02: CAD 42.06 per share

- 2025-03: CAD 35.87 per share

- 2025-04: CAD 34.74 per share

- 2025-05: CAD 39.72 per share

- 2025-06: CAD 43.43 per share

- 2025-07: CAD 42.05 per share

- 2025-08: CAD 38.02 per share

- 2025-09: CAD 36.41 per share

- 2025-10: CAD 38.58 per share

- 2025-11: CAD 35.93 per share

- 2025-12: CAD 37.81 per share

- 2026-01: CAD 38.70 per share

- 2026-02: CAD 43.55 per share

- 2026-03: CAD 39.21 per share

- 2026-04: CAD 44.07 per share

- 2026-05: CAD 42.63 per share

- 2026-06: CAD 40.88 per share

- 2026-07: CAD 38.25 per share

- 2026-08: CAD 26.72 per share

- 2026-09: CAD 25.72 per share

- 2026-10: CAD 25.09 per share

## Annual estimated value (CAD per share)

- FY2017: low CAD 9.98 per share, central CAD 10.97 per share, high CAD 12.28 per share

- FY2018: low CAD 11.45 per share, central CAD 13.00 per share, high CAD 14.59 per share

- FY2019: low CAD 10.96 per share, central CAD 12.50 per share, high CAD 14.19 per share

- FY2020: low CAD 13.43 per share, central CAD 16.22 per share, high CAD 18.35 per share

- FY2021: low CAD 11.73 per share, central CAD 14.86 per share, high CAD 17.09 per share

- FY2022: low CAD 18.17 per share, central CAD 23.66 per share, high CAD 27.52 per share

- FY2023: low CAD 21.20 per share, central CAD 28.67 per share, high CAD 33.43 per share

- FY2024: low CAD 26.76 per share, central CAD 37.30 per share, high CAD 43.59 per share

- FY2025: low CAD 19.30 per share, central CAD 21.71 per share, high CAD 24.92 per share

- FY2026: low CAD 21.91 per share, central CAD 24.62 per share, high CAD 28.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:47:24.438Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1394832/000139483226000015/ats-20260331_d2.htm); period 2026-03-31, filed 2026-05-28.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Prem Watsa](https://gigainvestors.com/FFH): 2,486,400 ATS shares; USD 70,487,000 reported position value; 2.67% of portfolio; hold; quarter 2026 Q2.