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What Is ATS Automation Tooling Systems Inc.'s (TSE:ATA) Share Price Doing?

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ATS Automation Tooling Systems Inc. (TSE:ATA), might not be a large cap stock, but it led the TSX gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at ATS Automation Tooling Systems’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for ATS Automation Tooling Systems

Is ATS Automation Tooling Systems still cheap?

Great news for investors – ATS Automation Tooling Systems is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is CA$38.25, but it is currently trading at CA$26.00 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, ATS Automation Tooling Systems’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from ATS Automation Tooling Systems?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. ATS Automation Tooling Systems' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since ATA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ATA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ATA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you'd like to know more about ATS Automation Tooling Systems as a business, it's important to be aware of any risks it's facing. For example - ATS Automation Tooling Systems has 3 warning signs we think you should be aware of.

If you are no longer interested in ATS Automation Tooling Systems, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.