Don't overlook NASDAQ:ATAT—a stock with solid growth prospects and a reasonable valuation.

Our stock screener has singled out ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as an attractive growth opportunity. NASDAQ:ATAT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for NASDAQ:ATAT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ATAT, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 583.46% over the past year.
• ATAT shows a strong growth in Revenue. In the last year, the Revenue has grown by 106.19%.
• ATAT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.88% yearly.
• The Earnings Per Share is expected to grow by 26.00% on average over the next years. This is a very strong growth
• ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.20% yearly.

Understanding NASDAQ:ATAT'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 NASDAQ:ATAT, the assigned 6 reflects its valuation:

• 60.45% of the companies in the same industry are more expensive than ATAT, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 30.77. ATAT is valued slightly cheaper when compared to this.
• 64.93% of the companies in the same industry are more expensive than ATAT, based on the Price/Forward Earnings ratio.
• ATAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATAT is cheaper than 80.60% of the companies in the same industry.
• ATAT's 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.

Health Assessment of NASDAQ:ATAT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ATAT has earned a 8 out of 10:

• ATAT has an Altman-Z score of 5.45. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
• ATAT has a better Altman-Z score (5.45) than 90.30% of its industry peers.
• ATAT has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
• ATAT has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. ATAT outperforms 94.78% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that ATAT is not too dependend on debt financing.
• ATAT's Debt to Equity ratio of 0.03 is amongst the best of the industry. ATAT outperforms 85.82% of its industry peers.
• ATAT has a Current ratio of 1.99. This is amongst the best in the industry. ATAT outperforms 85.07% of its industry peers.
• The Quick ratio of ATAT (1.92) is better than 85.82% of its industry peers.

Profitability Insights: NASDAQ:ATAT

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 NASDAQ:ATAT, the assigned 7 is noteworthy for profitability:

• ATAT has a better Return On Assets (14.30%) than 91.04% of its industry peers.
• ATAT has a better Return On Equity (39.04%) than 88.81% of its industry peers.
• ATAT has a better Return On Invested Capital (16.88%) than 86.57% of its industry peers.
• The last Return On Invested Capital (16.88%) for ATAT is above the 3 year average (9.26%), which is a sign of increasing profitability.
• The Profit Margin of ATAT (17.18%) is better than 91.04% of its industry peers.
• Looking at the Operating Margin, with a value of 20.97%, ATAT is in the better half of the industry, outperforming 79.10% 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 79.10% 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.

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.