Despite its growth, NYSE:AESI remains within the realm of affordability.

Last update: May 31, 2024

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.

Exploring NYSE:AESI's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:AESI has received a 7 out of 10:

AESI shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.19%.
The Revenue has been growing by 76.44% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 38.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 33.21% on average over the next years. This is a very strong growth

Understanding NYSE:AESI's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:AESI boasts a 7 out of 10:

AESI's Price/Earnings ratio is a bit cheaper when compared to the industry. AESI is cheaper than 69.23% of the companies in the same industry.
AESI is valuated cheaply when we compare the Price/Earnings ratio to 27.83, which is the current average of the S&P500 Index.
AESI is valuated cheaply with a Price/Forward Earnings ratio of 6.26.
Based on the Price/Forward Earnings ratio, AESI is valued cheaper than 93.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.84. AESI is valued rather cheaply when compared to this.
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.
AESI's earnings are expected to grow with 38.29% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:AESI

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:AESI, the assigned 5 for health provides valuable insights:

A Debt/Equity ratio of 0.20 indicates that AESI is not too dependend on debt financing.
AESI's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. AESI outperforms 64.62% of its industry peers.
A Current Ratio of 3.44 indicates that AESI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.44, AESI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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.
With an excellent Quick ratio value of 3.04, AESI belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.

Looking at the Profitability

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:

Looking at the Return On Assets, with a value of 8.36%, AESI is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
With a decent Return On Equity value of 12.15%, AESI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.92%, AESI belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AESI is significantly above the industry average of 8.01%.
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.
Looking at the Profit Margin, with a value of 17.17%, AESI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
The Operating Margin of AESI (43.18%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of AESI has grown nicely.
AESI's Gross Margin of 51.11% is amongst the best of the industry. AESI outperforms 89.23% of its industry peers.
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.

Our latest full fundamental report of AESI contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.