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

Last update: Oct 8, 2024

Discover ATLAS ENERGY SOLUTIONS INC (NYSE:AESI), an undervalued growth gem identified by our stock screener. NYSE:AESI is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

What does the Growth looks like for NYSE:AESI

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:AESI was assigned a score of 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 28.35% yearly.
The Revenue is expected to grow by 31.33% on average over the next years. This is a very strong growth

Understanding NYSE:AESI's Valuation Score

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:AESI, the assigned 5 reflects its valuation:

Based on the Price/Earnings ratio, AESI is valued a bit cheaper than the industry average as 66.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AESI to the average of the S&P500 Index (30.72), we can say AESI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 7.36, the valuation of AESI can be described as very cheap.
86.44% of the companies in the same industry are more expensive than AESI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.18. AESI is valued rather cheaply when compared to this.
AESI has a very decent profitability rating, which may justify a higher PE ratio.
AESI's earnings are expected to grow with 28.35% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:AESI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AESI has achieved 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's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. AESI outperforms 61.02% of its industry peers.
A Current Ratio of 3.44 indicates that AESI has no problem at all paying its short term obligations.
AESI has a Current ratio of 3.44. This is amongst the best in the industry. AESI outperforms 88.14% of its industry peers.
A Quick Ratio of 3.04 indicates that AESI has no problem at all paying its short term obligations.
AESI has a Quick ratio of 3.04. This is amongst the best in the industry. AESI outperforms 89.83% of its industry peers.

Assessing Profitability for NYSE:AESI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:AESI, the assigned 7 is noteworthy for profitability:

AESI has a better Return On Assets (8.36%) than 74.58% of its industry peers.
AESI's Return On Invested Capital of 17.92% is amongst the best of the industry. AESI outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AESI is significantly above the industry average of 8.15%.
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.
AESI has a better Profit Margin (17.17%) than 91.53% of its industry peers.
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.
AESI's Gross Margin of 51.11% is amongst the best of the industry. AESI outperforms 89.83% of its industry peers.
In the last couple of years the Gross Margin of AESI has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

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.