ATS
CyclicalsValuation Breakdown
Cyclical companies (chemicals, oil & gas, basic resources) have earnings that swing dramatically with commodity prices and economic cycles. Valuing them on a single year's earnings is misleading: they look cheap at peaks and expensive at troughs. This model uses 7-year median EBITDA ("mid-cycle" earnings) and a 7-year median EV/EBITDA multiple to estimate what the firm is worth at a normal point in the cycle.
Valuation Track Record
Retroactive intrinsic value vs actual close price — ATS
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
ATS exhibits several concerning signs of potential earnings manipulation, as indicated by a Beneish M-Score of -2.4965, which is significantly below the manipulation threshold of -1.78. Additionally, the company's earnings quality score of 33.8/100 reflects substantial weaknesses in cash conversion and revenue recognition.
- Beneish M-Score of -2.4965 indicates potential earnings manipulation, well below the threshold of -1.78.
- Earnings Quality Score of 33.8/100, with cash conversion at 0.0/100, suggests severe issues in converting earnings into cash.
- Receivables quality at 26.1/100 and revenue recognition at 0.0/100 indicate potential overstatement of revenues.
- DSRI of 1.1781 suggests that sales growth is in line with receivables growth, which may indicate some level of operational stability.
- SGA (Selling, General and Administrative expenses) ratio at 1.1700 indicates that the company is managing its administrative costs relative to sales.
The ownership structure is heavily concentrated among individual shareholders, with the largest holding at 19.9%. This concentration may lead to governance risks, as decisions may favor the interests of a few over minority shareholders.
Investors should exercise caution and conduct further due diligence, particularly focusing on cash flow statements and revenue recognition practices. It may be prudent to monitor for any changes in management or financial reporting practices before considering investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for ATS — hover nodes for intel, click to navigate