Looking for growth without the hefty price tag? Consider NASDAQ:ATAT.

Last update: Dec 10, 2024

Consider ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ATAT is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of NASDAQ:ATAT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ATAT scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 171.84% over the past year.
Looking at the last year, ATAT shows a very strong growth in Revenue. The Revenue has grown by 76.11%.
Measured over the past years, ATAT shows a very strong growth in Revenue. The Revenue has been growing by 43.88% on average per year.
The Earnings Per Share is expected to grow by 29.96% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 34.31% on average over the next years. This is a very strong growth

What does the Valuation looks like for NASDAQ:ATAT

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. NASDAQ:ATAT has achieved a 5 out of 10:

Based on the Price/Earnings ratio, ATAT is valued a bit cheaper than 63.70% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, ATAT is valued a bit cheaper than 64.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATAT is valued a bit cheaper than 80.00% 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.
The excellent profitability rating of ATAT may justify a higher PE ratio.
ATAT's earnings are expected to grow with 29.96% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ATAT was assigned a score of 8 for health:

ATAT has an Altman-Z score of 6.02. 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 6.02, ATAT belongs to the top of the industry, outperforming 89.63% of the companies in the same industry.
The Debt to FCF ratio of ATAT is 0.06, which is an excellent value as it means it would take ATAT, only 0.06 years of fcf income to pay off all of its debts.
ATAT has a better Debt to FCF ratio (0.06) than 95.56% of its industry peers.
ATAT has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ATAT (0.04) is better than 85.93% of its industry peers.
The Current ratio of ATAT (1.97) is better than 85.19% of its industry peers.
ATAT has a Quick ratio of 1.92. This is amongst the best in the industry. ATAT outperforms 85.19% of its industry peers.

Profitability Insights: NASDAQ:ATAT

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, NASDAQ:ATAT has achieved a 8:

ATAT has a Return On Assets of 16.16%. This is amongst the best in the industry. ATAT outperforms 95.56% of its industry peers.
ATAT's Return On Equity of 44.79% is amongst the best of the industry. ATAT outperforms 94.81% of its industry peers.
The Return On Invested Capital of ATAT (19.32%) is better than 92.59% of its industry peers.
The last Return On Invested Capital (19.32%) for ATAT is above the 3 year average (9.25%), which is a sign of increasing profitability.
ATAT's Profit Margin of 17.47% is amongst the best of the industry. ATAT outperforms 92.59% of its industry peers.
Looking at the Operating Margin, with a value of 21.33%, ATAT belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of ATAT has grown nicely.
With an excellent Gross Margin value of 81.83%, ATAT belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.

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

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.