NYSE:AESI, a growth stock which is not overvalued.

Last update: Jul 2, 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.

Evaluating Growth: NYSE:AESI

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:AESI boasts a 7 out of 10:

AESI shows a strong growth in Revenue. In the last year, 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.
Based on estimates for the next years, AESI will show a very strong growth in Earnings Per Share. The EPS will grow by 38.29% on average per year.
AESI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 33.21% yearly.

Evaluating Valuation: NYSE:AESI

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:AESI has achieved a 7 out of 10:

A Price/Earnings ratio of 11.13 indicates a reasonable valuation of AESI.
Compared to the rest of the industry, the Price/Earnings ratio of AESI indicates a somewhat cheap valuation: AESI is cheaper than 78.46% of the companies listed in the same industry.
AESI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.16.
The Price/Forward Earnings ratio is 5.24, which indicates a rather cheap valuation of AESI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AESI indicates a rather cheap valuation: AESI is cheaper than 95.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AESI to the average of the S&P500 Index (20.02), we can say AESI is valued rather cheaply.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AESI may justify a higher PE ratio.
A more expensive valuation may be justified as AESI's earnings are expected to grow with 38.29% in the coming years.

What does the Health looks like for NYSE:AESI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AESI has received a 5 out of 10:

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 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.
With an excellent Current ratio value of 3.44, AESI belongs to the best 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.
AESI has a Quick ratio of 3.04. This is amongst the best in the industry. AESI outperforms 89.23% of its industry peers.

Assessing Profitability for NYSE:AESI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AESI has achieved a 7:

AESI has a better Return On Assets (8.36%) than 76.92% of its industry peers.
AESI has a better Return On Invested Capital (17.92%) than 96.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AESI is significantly above the industry average of 7.74%.
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 92.31% of its industry peers.
Looking at the Operating Margin, with a value of 43.18%, AESI belongs to the top 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.
The Gross Margin of AESI (51.11%) is better than 89.23% 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.