For those who appreciate growth without the sticker shock, NASDAQ:ATAT is worth considering.

Last update: Oct 25, 2024

Our stock screening tool has pinpointed ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as a growth stock that isn't overvalued. NASDAQ:ATAT is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Growth: NASDAQ:ATAT

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. NASDAQ:ATAT boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 583.46% over the past year.
Looking at the last year, ATAT shows a very strong growth in Revenue. 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.
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.
ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.20% yearly.

ChartMill's Evaluation of Valuation

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:

Compared to the rest of the industry, the Price/Earnings ratio of ATAT indicates a somewhat cheap valuation: ATAT is cheaper than 63.91% of the companies listed in the same industry.
ATAT is valuated rather cheaply when we compare the Price/Earnings ratio to 30.85, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, ATAT is valued a bit cheaper than 68.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, ATAT is valued a bit cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATAT indicates a rather cheap valuation: ATAT is cheaper than 84.96% of the companies listed 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 an outstanding profitability rating, which may justify a higher PE ratio.
ATAT's earnings are expected to grow with 26.00% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NASDAQ:ATAT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 5.36. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
ATAT has a better Altman-Z score (5.36) than 90.23% of its industry peers.
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 95.49% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that ATAT is not too dependend on debt financing.
ATAT has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. ATAT outperforms 86.47% of its industry peers.
ATAT's Current ratio of 1.99 is amongst the best of the industry. ATAT outperforms 84.21% of its industry peers.
ATAT has a better Quick ratio (1.92) than 84.96% of its industry peers.

Profitability Examination for NASDAQ:ATAT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ATAT scores a 8 out of 10:

ATAT has a Return On Assets of 14.30%. This is amongst the best in the industry. ATAT outperforms 90.98% of its industry peers.
ATAT has a Return On Equity of 39.04%. This is amongst the best in the industry. ATAT outperforms 88.72% of its industry peers.
ATAT has a Return On Invested Capital of 16.88%. This is amongst the best in the industry. ATAT outperforms 86.47% 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 90.98% of its industry peers.
ATAT has a Operating Margin of 20.97%. This is in the better half of the industry: ATAT outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of ATAT has grown nicely.
ATAT has a Gross Margin of 68.47%. This is amongst the best in the industry. ATAT outperforms 80.45% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of ATAT

Disclaimer

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.