ATS (TSX:ATS) is a Cambridge-based firm that, along with its subsidiaries, supplies manufacturing unit automation options to a world shopper base. Immediately, I wish to focus on why Canadian buyers ought to lock in equities that provide publicity to this sector. Furthermore, I wish to clarify why this TSX inventory is nonetheless price snatching up, even after roaring out of the gate in 2023. Let’s soar in.

How has this TSX inventory carried out over the previous yr?

Shares of this TSX inventory have shot up 29% in 2023 as of shut on March 20. This has pushed the inventory into the black within the year-over-year interval. ATS had suffered a pointy dip within the late winter and early spring of 2022. Nevertheless, it has bounced again properly and surpassed the all-time highs that it had beforehand hit final yr.

Right here’s why I’m enthusiastic about ATS’s potential within the automation area

The rise of automation and its affect on the trendy office has develop into a major political, social, and financial concern. Certainly, the rise of synthetic intelligence bots like ChatGPT present that there’s actually no restrict to the potential for jobs to be automated, even in inventive and tutorial fields.

Manufacturing facility automation includes the incorporation of automation from end-to-end manufacturing processes. Final yr, market researcher The Perception Companions estimated that the worldwide manufacturing unit automation market was valued at US$154 billion in 2022. The report tasks that this market can be valued at US$249 billion by 2028. That may characterize a compound annual development charge (CAGR) of 8.2% over the forecast interval. This development potential ought to pique investor curiosity on this TSX inventory.

Ought to buyers be impressed by ATS’s latest earnings?

ATS launched its third-quarter (Q3) fiscal 2023 outcomes on February 9, 2023. In Q3 FY2023, the corporate delivered income development of 18% to $647 million. In the meantime, Order Bookings elevated 45% yr over yr to $979 million, whereas its Order Backlog additionally rose 45% to $2.14 billion. Revenues, Order Bookings, and the Order Backlog all hit a file within the third quarter.

For the primary 9 months of fiscal 2023, ATS achieved income development of 16% to $1.84 billion. Furthermore, adjusted fundamental earnings per share (EPS) climbed 8.5% to $1.66. It reported Order Bookings of $2.51 billion — up from $1.81 billion within the year-to-date interval in fiscal 2022.

ATS administration praised its robust natural development and introduced that it had continued to efficiently combine its latest two acquisitions. On March 3, 2023, ATS introduced that it had accomplished its acquisition of ZI-ARGUS. This main automation techniques integrator within the ASEAN area and Australia will present additional international attain for ATS.

Why this TSX inventory is price shopping for in late March

This TSX inventory at present possesses a price-to-earnings ratio of 36. Its worth is center of the highway on the time of this writing, however buyers must be enthusiastic about its development prospects this decade. Certainly, it’s equipped for very robust earnings development going ahead.