NASDAQ:ATAT is not too expensive for the growth it is showing.

Last update: Sep 12, 2024

Here's ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) for you, a growth stock our stock screener believes is undervalued. NASDAQ:ATAT 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.

Growth Insights: NASDAQ:ATAT

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. NASDAQ:ATAT has achieved a 8 out of 10:

ATAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 583.46%, which is quite impressive.
The Revenue has grown by 106.19% in the past year. This is a very strong growth!
ATAT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.88% yearly.
Based on estimates for the next years, ATAT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.00% on average per year.
Based on estimates for the next years, ATAT will show a very strong growth in Revenue. The Revenue will grow by 31.57% on average per year.

Evaluating Valuation: NASDAQ:ATAT

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. NASDAQ:ATAT boasts a 6 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of ATAT indicates a somewhat cheap valuation: ATAT is cheaper than 71.11% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.15. ATAT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, ATAT is valued a bit cheaper than the industry average as 76.30% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.77. ATAT is valued slightly cheaper when compared to this.
ATAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATAT is cheaper than 85.93% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ATAT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATAT's earnings are expected to grow with 26.00% in the coming years.

Analyzing Health Metrics

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. NASDAQ:ATAT has achieved a 8 out of 10:

ATAT has an Altman-Z score of 4.58. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, ATAT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of ATAT is 0.05, which is an excellent value as it means it would take ATAT, only 0.05 years of fcf income to pay off all of its debts.
ATAT has a better Debt to FCF ratio (0.05) than 94.81% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that ATAT is not too dependend on debt financing.
The Debt to Equity ratio of ATAT (0.03) is better than 85.93% of its industry peers.
ATAT has a better Current ratio (1.99) than 85.19% of its industry peers.
With an excellent Quick ratio value of 1.92, ATAT belongs to the best of the industry, outperforming 85.93% of the companies in the same industry.

Exploring NASDAQ:ATAT's 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. NASDAQ:ATAT was assigned a score of 7 for profitability:

ATAT's Return On Assets of 14.30% is amongst the best of the industry. ATAT outperforms 91.11% of its industry peers.
ATAT's Return On Equity of 39.04% is amongst the best of the industry. ATAT outperforms 88.89% of its industry peers.
The Return On Invested Capital of ATAT (16.88%) is better than 86.67% of its industry peers.
The 3 year average ROIC (9.26%) for ATAT is below the current ROIC(16.88%), indicating increased profibility in the last year.
ATAT's Profit Margin of 17.18% is amongst the best of the industry. ATAT outperforms 91.11% of its industry peers.
With a decent Operating Margin value of 20.97%, ATAT is doing good in the industry, outperforming 79.26% of the companies in the same industry.
In the last couple of years the Operating Margin of ATAT has grown nicely.
ATAT has a better Gross Margin (68.47%) than 80.00% of its industry peers.

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

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

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.