Despite its impressive fundamentals, NASDAQ:ATAT remains undervalued.

Discover ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT)—an undervalued stock our stock screener has picked out. NASDAQ:ATAT demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for NASDAQ:ATAT

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 7 reflects its valuation:

• Based on the Price/Earnings ratio, ATAT is valued a bit cheaper than 64.66% of the companies in the same industry.
• 74.44% of the companies in the same industry are more expensive than ATAT, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 23.86. ATAT is valued slightly cheaper when compared to this.
• Based on the Price/Free Cash Flow ratio, ATAT is valued cheaper than 81.20% 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.
• The excellent profitability rating of ATAT may justify a higher PE ratio.
• ATAT's earnings are expected to grow with 31.17% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: 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.
• The Return On Equity of ATAT (44.79%) is better than 94.74% of its industry peers.
• With an excellent Return On Invested Capital value of 19.32%, ATAT belongs to the best of the industry, outperforming 92.48% of the companies in the same industry.
• 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 92.48% of its industry peers.
• 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 has a Gross Margin of 81.83%. This is amongst the best in the industry. ATAT outperforms 95.49% of its industry peers.

Health Examination for 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 5.72. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of ATAT (5.72) is better than 89.47% of its industry peers.
• 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 95.49% of its industry peers.
• A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.04, ATAT belongs to the top of the industry, outperforming 86.47% of the companies in the same industry.
• Looking at the Current ratio, with a value of 1.97, ATAT belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
• The Quick ratio of ATAT (1.92) is better than 84.96% of its industry peers.

Evaluating Growth: NASDAQ:ATAT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ATAT has received 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%.
• 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 31.17% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 35.09% on average over the next years. This is a very strong growth

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.