Q: Hello, would there be any issues on buying a ATS bond that goes out about 3 years. Thank you.
5i Research Answer:
ATS is not a huge company, and its business can by somewhat cyclical. Generally it produces good cash flow, but 2024 was weak. In 2024 it had $70M in interest expenses. Cash flow in a typical year is $120M+. It is expected to show good earnings growth next year. We would be comfortable, but moreso because the bond is short term, and we would consider it higher-than-normal risk for an income-focused investor.