NASDAQ:ATAT, a strong growth stock, setting up for a breakout.

Last update: Dec 23, 2024

In this article we will dive into ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ATOUR LIFESTYLE HOLDINGS-ADR showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Assessment of 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:

ATAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 171.84%, which is quite impressive.
ATAT shows a strong growth in Revenue. In the last year, 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 31.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, ATAT will show a very strong growth in Revenue. The Revenue will grow by 35.09% on average per year.

Evaluating Health: NASDAQ:ATAT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ATAT scores a 8 out of 10:

ATAT has an Altman-Z score of 5.85. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.85, ATAT belongs to the best of the industry, outperforming 89.47% 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 Debt to FCF ratio of 0.06. This is amongst the best in the industry. ATAT outperforms 95.49% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, ATAT belongs to the best of the industry, outperforming 86.47% of the companies in the same industry.
ATAT's Current ratio of 1.97 is amongst the best of the industry. ATAT outperforms 84.96% of its industry peers.
ATAT has a better Quick ratio (1.92) than 84.96% of its industry peers.

Assessing Profitability for NASDAQ:ATAT

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 8 for profitability:

ATAT has a Return On Assets of 16.16%. This is amongst the best in the industry. ATAT outperforms 95.49% of its industry peers.
ATAT has a Return On Equity of 44.79%. This is amongst the best in the industry. ATAT outperforms 94.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.32%, ATAT belongs to the top of the industry, outperforming 92.48% of the companies in the same industry.
The 3 year average ROIC (9.25%) for ATAT is below the current ROIC(19.32%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 17.47%, ATAT belongs to the top of the industry, outperforming 92.48% of the companies in the same industry.
ATAT has a better Operating Margin (21.33%) than 81.20% of its industry peers.
In the last couple of years the Operating Margin of ATAT has grown nicely.
ATAT's Gross Margin of 81.83% is amongst the best of the industry. ATAT outperforms 95.49% of its industry peers.

How do we evaluate the setup for NASDAQ:ATAT?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:ATAT has a 7 as its setup rating:

Besides having an excellent technical rating, ATAT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 29.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.91, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.