Risk factor
Low price volatility
Profitability factor
Very low or no dividends
About
ATS Corporation, operating globally through its subsidiaries, delivers comprehensive automation solutions. The company's expertise spans the entire lifecycle of automated manufacturing and assembly systems, encompassing planning, design, construction, commissioning, and ongoing servicing, which also includes providing specialized automation products and test solutions. Their enterprise-level services involve meticulous project management, strategic selection and coordination of partners and suppliers, facility layout and operational design, and robust business case development and project justification. These solutions extend to post-project support, spare parts provision, system design, integration, validation, training, and startup assistance. Before automation implementation, ATS offers pre-automation services such as discovery and analysis, concept development, simulation, and total cost of ownership modeling. Following implementation, their post-automation services include training, process optimization, preventative maintenance, emergency support, spare parts, retooling, retrofits, and equipment relocation. Additionally, ATS engages in contract manufacturing services. The company's engineering capabilities cover design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation product and platform creation, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and comprehensive documentation. ATS serves a broad spectrum of industries, including life sciences, transportation, consumer products, food and beverage, and energy markets. Founded in 1978 and headquartered in Cambridge, Canada, the company was formerly known as ATS Automation Tooling Systems Inc. before adopting its current name, ATS Corporation, in November 2022.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EB
Target Price
The average target price of ATS.TO is 52 and suggests 40% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increa