ATS (TSX:ATS) Gross Margin %

: 28.33% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. ATS's Gross Profit for the three months ended in Sep. 2023 was C$208 Mil. ATS's Revenue for the three months ended in Sep. 2023 was C$736 Mil. Therefore, ATS's Gross Margin % for the quarter that ended in Sep. 2023 was 28.33%.

The historical rank and industry rank for ATS's Gross Margin % or its related term are showing as below:

TSX:ATS' s Gross Margin % Range Over the Past 10 Years
Min: 24.8 Med: 26.2 Max: 28.45
Current: 28.45

During the past 13 years, the highest Gross Margin % of ATS was 28.45%. The lowest was 24.80%. And the median was 26.20%.

TSX:ATS's Gross Margin % is ranked better than
56.08% of 2935 companies
in the Industrial Products industry
Industry Median: 26.44 vs TSX:ATS: 28.45

ATS had a gross margin of 28.33% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ATS was 2.00% per year.

ATS Gross Margin % Historical Data

The historical data trend for ATS's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ATS Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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26.22

25.33

26.87

28.06

28.16

ATS Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															27.42	28.39	28.86	28.23	28.33

Competitive Comparison

For the Specialty Industrial Machinery subindustry, ATS's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ATS Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, ATS's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ATS's Gross Margin % falls into.

ATS Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

ATS's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	725.8	/	2577.384
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2577.384 - 1851.574)	/	2577.384
	=	28.16 %

ATS's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	208.4	/	735.716
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(735.716 - 527.298)	/	735.716
	=	28.33 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

ATS (TSX:ATS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

ATS had a gross margin of 28.33% for the quarter that ended in Sep. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

ATS Gross Margin % Related Terms

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ATS (TSX:ATS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ATS Corp (TSX:ATS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ATS:USA

Address

730 Fountain Street North, Building 2, Cambridge, ON, CAN, N3H 4R7

Website

https://www.atsautomation.com

ATS Corp is a Canada-based company that provides automation systems. The company designs and builds customized automated manufacturing and testing systems for customers, and provides pre- and post-automation services. The company's products comprise conveyor systems, automated electrified monorails, tray handlers, laser systems, and other hardware and software products. The company also provides pre-automation solutions, including strategic direction and planning services, as well as aftermarket support. The company's clients come from the life sciences, food and beverage transportation, consumer products and electronics, and energy sectors. The company generates the majority of its sales from the North American and European markets.