ATS Automation Tooling Systems Inc Net Income dropped on 28.0% in 2016 while Revenue jumped on 11.1%
19.05.2016 • About ATS Automation Tooling Systems Inc (
$ATA) • By InTwits
ATS Automation Tooling Systems Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.2% in FY2016 vs. 11.5% in FY2015 vs. 12.1% in FY2012
- ATS Automation Tooling Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has business model with low profitability: ROIC is at 8.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.3x while industry average is 1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ATS Automation Tooling Systems Inc ($ATA) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 595 | 591 | 683 | 936 | 1,040 | 11.1% |
| Gross Profit | 157 | 150 | 182 | 245 | 259 | 5.6% |
| SG&A | 95 | 89 | 113 | 174 | 179 | 3.2% |
| EBITDA | 72 | 69 | 79 | 108 | 116 | 8.0% |
| Net Income | -60 | 15 | 62 | 55 | 40 | -28.0% |
Balance Sheet
|
|---|
| Cash | 96 | 105 | 76 | 106 | 170 | 60.3% |
| Short Term Debt | 1 | 0 | 5 | 5 | 8 | 48.5% |
| Long Term Debt | 2 | 1 | 1 | 286 | 316 | 10.5% |
Cash flow
|
|---|
| Capex | 5 | 8 | 4 | 11 | 10 | -9.9% |
Ratios
|
|---|
| Revenue growth | 22.7% | -0.7% | 15.6% | 37.0% | 11.1% | |
| EBITDA growth | 57.1% | -4.6% | 15.4% | 35.3% | 8.0% | |
| Gross Margin | 26.3% | 25.4% | 26.6% | 26.2% | 24.9% | -1.3% |
| EBITDA Margin | 12.1% | 11.7% | 11.6% | 11.5% | 11.2% | -0.3% |
| Net Income Margin | -10.0% | 2.5% | 9.1% | 5.9% | 3.8% | -2.1% |
| SG&A, % of revenue | 15.9% | 15.1% | 16.6% | 18.6% | 17.2% | -1.3% |
| CAPEX, % of revenue | 0.8% | 1.3% | 0.6% | 1.2% | 1.0% | -0.2% |
| ROIC | 15.0% | 14.8% | 13.2% | 9.3% | 8.0% | -1.3% |
| ROE | -14.6% | 3.9% | 13.6% | 10.1% | 6.5% | -3.6% |
| Net Debt/EBITDA | -1.3x | -1.5x | -0.9x | 1.7x | 1.3x | -0.4x |
ATS Automation Tooling Systems Inc ($ATA) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 254 | 264 | 275 | 247 | 33.2% | 27.4% | 10.5% | -14.7% |
| EBITDA | 29 | 34 | 36 | 18 | 37.3% | 48.1% | 26.0% | -49.6% |
| Net Income | 10 | 13 | 15 | 1 | -38.0% | -11.4% | 82.9% | -91.4% |
Balance Sheet
|
|---|
| Cash | 113 | 97 | 136 | 170 | 38.6% | 0.3% | 25.7% | 60.3% |
| Short Term Debt | 6 | 7 | 7 | 8 | 21.6% | 88.6% | -9.5% | 48.5% |
| Long Term Debt | 298 | 323 | 337 | 316 | 23,421.0% | -7.4% | 5.1% | 10.5% |
Ratios
|
|---|
| Gross Margin | 24.0% | 25.2% | 25.5% | 24.8% | -4.2% | -2.0% | 0.3% | -0.2% |
| EBITDA Margin | 11.3% | 12.8% | 13.1% | 7.2% | 0.3% | 1.8% | 1.6% | -5.0% |
| Net Income Margin | 3.9% | 4.9% | 5.6% | 0.6% | -4.4% | -2.1% | 2.2% | -5.0% |
Revenue and profitability
ATS Automation Tooling Systems Inc's Revenue jumped on 11.1%. Revenue growth showed slow down in FY16Q4 - it was -14.7% YoY. EBITDA Margin showed almost no change in FY2016.
Gross Margin decreased slightly on 1.3 pp from 26.2% to 24.9% in FY2016. SG&A as a % of Revenue decreased slightly on 1.3 pp from 18.6% to 17.2% in FY2016.
Net Income marign decreased on 2.1 pp from 5.9% to 3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
ATS Automation Tooling Systems Inc's CAPEX/Revenue was 0.97% in FY2016. ATS Automation Tooling Systems Inc showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.93%.
Return on investment
The company operates at low ROIC (8.02%) and ROE (6.48%). ROIC decreased slightly on 1.3 pp from 9.3% to 8.0% in FY2016. ROE decreased on 3.6 pp from 10.1% to 6.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 0.4x from 1.7x to 1.3x in FY2016. Debt jumped on 11.1% while cash surged on 60.3%.
Appendix 1: Peers in Industrial
Below we provide ATS Automation Tooling Systems Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Diversified Royalty Corp ($DIV) | | | | 503.3% | |
| WSP Global Inc ($WSP) | | 60.3% | 44.0% | 108.9% | 5.2% |
| CEMATRIX Corp ($CVX) | | -5.6% | 7.9% | 76.5% | -37.6% |
| Carmanah Technologies Corp ($CMH) | | -2.0% | 68.8% | 56.0% | -30.0% |
| STT Enviro Corp ($STT) | 10.3% | -2.6% | -21.4% | 51.1% | |
| |
|---|
| Median (65 companies) | 10.1% | 5.7% | 10.2% | 8.5% | 3.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Omni-Lite Industries Canada Inc ($OML) | 55.3% | 54.9% | 54.9% | 54.8% | |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| |
|---|
| Median (59 companies) | 22.6% | 22.8% | 20.1% | 21.1% | 22.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Photon Control Inc ($PHO) | 17.6% | 24.8% | 29.3% | 38.3% | |
| Omni-Lite Industries Canada Inc ($OML) | 17.7% | 17.0% | 20.4% | 26.2% | |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| |
|---|
| Median (63 companies) | 9.6% | 7.9% | 7.1% | 7.5% | 11.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (64 companies) | 3.1% | 3.6% | 4.2% | 3.5% | 4.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (55 companies) | 10.4% | 9.5% | 9.5% | 8.3% | 9.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (56 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
