For those who appreciate growth without the sticker shock, NYSE:AESI is worth considering.

Last update: Mar 7, 2024

Here's ATLAS ENERGY SOLUTIONS INC (NYSE:AESI) for you, a growth stock our stock screener believes is undervalued. NYSE:AESI is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:AESI has earned a 7 for growth:

Looking at the last year, AESI shows a very strong growth in Revenue. The Revenue has grown by 27.19%.
AESI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 76.44% yearly.
AESI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.29% yearly.
Based on estimates for the next years, AESI will show a very strong growth in Revenue. The Revenue will grow by 32.90% on average per year.

A Closer Look at Valuation for NYSE:AESI

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:AESI scores a 6 out of 10:

AESI's Price/Earnings ratio is a bit cheaper when compared to the industry. AESI is cheaper than 71.21% of the companies in the same industry.
AESI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.81.
A Price/Forward Earnings ratio of 7.44 indicates a rather cheap valuation of AESI.
80.30% of the companies in the same industry are more expensive than AESI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AESI to the average of the S&P500 Index (21.87), we can say AESI is valued rather cheaply.
AESI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AESI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AESI's earnings are expected to grow with 71.29% in the coming years.

Health Analysis for NYSE:AESI

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:AESI was assigned a score of 5 for health:

A Debt/Equity ratio of 0.20 indicates that AESI is not too dependend on debt financing.
AESI has a better Debt to Equity ratio (0.20) than 60.61% of its industry peers.
A Current Ratio of 3.44 indicates that AESI has no problem at all paying its short term obligations.
The Current ratio of AESI (3.44) is better than 86.36% of its industry peers.
AESI has a Quick Ratio of 3.04. This indicates that AESI is financially healthy and has no problem in meeting its short term obligations.
AESI has a better Quick ratio (3.04) than 89.39% of its industry peers.

A Closer Look at Profitability for NYSE:AESI

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:AESI was assigned a score of 7 for profitability:

With a decent Return On Assets value of 8.36%, AESI is doing good in the industry, outperforming 75.76% of the companies in the same industry.
AESI has a Return On Equity of 12.15%. This is in the better half of the industry: AESI outperforms 62.12% of its industry peers.
AESI's Return On Invested Capital of 17.92% is amongst the best of the industry. AESI outperforms 96.97% of its industry peers.
AESI had an Average Return On Invested Capital over the past 3 years of 17.66%. This is significantly above the industry average of 8.83%.
The 3 year average ROIC (17.66%) for AESI is below the current ROIC(17.92%), indicating increased profibility in the last year.
AESI has a better Profit Margin (17.17%) than 93.94% of its industry peers.
The Operating Margin of AESI (43.18%) is better than 100.00% of its industry peers.
AESI's Operating Margin has improved in the last couple of years.
AESI has a Gross Margin of 51.11%. This is amongst the best in the industry. AESI outperforms 93.94% of its industry peers.
AESI's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of AESI

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.