Investors seeking growth at a reasonable cost should explore NYSE:AESI.

ATLAS ENERGY SOLUTIONS INC (NYSE:AESI) was identified as an affordable growth stock by our stock screener. NYSE:AESI is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Deciphering NYSE:AESI's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:AESI has achieved a 7 out of 10:

• 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 35.97% yearly.
• The Revenue is expected to grow by 36.15% on average over the next years. This is a very strong growth

Unpacking NYSE:AESI's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:AESI was assigned a score of 6 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of AESI indicates a somewhat cheap valuation: AESI is cheaper than 69.23% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 24.83, AESI is valued a bit cheaper.
• With a Price/Forward Earnings ratio of 8.46, the valuation of AESI can be described as very reasonable.
• 86.15% of the companies in the same industry are more expensive than AESI, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, 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 35.97% in the coming years.

Health Insights: NYSE:AESI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:AESI scores a 5 out of 10:

• AESI has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
• AESI has a Debt to Equity ratio of 0.20. This is in the better half of the industry: AESI outperforms 63.08% of its industry peers.
• AESI has a Current Ratio of 3.44. This indicates that AESI is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of AESI (3.44) is better than 90.77% 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's Quick ratio of 3.04 is amongst the best of the industry. AESI outperforms 90.77% of its industry peers.

Evaluating Profitability: NYSE:AESI

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:AESI scores a 7 out of 10:

• The Return On Assets of AESI (8.36%) is better than 76.92% of its industry peers.
• AESI has a Return On Equity of 12.15%. This is in the better half of the industry: AESI outperforms 61.54% of its industry peers.
• The Return On Invested Capital of AESI (17.92%) is better than 96.92% 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 8.59%.
• The last Return On Invested Capital (17.92%) for AESI is above the 3 year average (17.66%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 17.17%, AESI belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
• With an excellent Operating Margin value of 43.18%, AESI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of AESI has grown nicely.
• Looking at the Gross Margin, with a value of 51.11%, AESI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
• AESI's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of AESI for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.