NASDAQ:ATAT is not too expensive for the growth it is showing.

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:

• 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.
• The Revenue has grown by 76.11% in the past year. This is a very strong growth!
• The Revenue has been growing by 43.88% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, ATAT will show a very strong growth in Earnings Per Share. The EPS will grow by 31.17% on average per year.
• ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.09% yearly.

Unpacking NASDAQ:ATAT's Valuation Rating

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:

• 64.66% of the companies in the same industry are more expensive than ATAT, based on the Price/Earnings ratio.
• 75.19% of the companies in the same industry are more expensive than ATAT, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.59, ATAT is valued a bit cheaper.
• ATAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATAT is cheaper than 81.95% 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 an outstanding profitability rating, which 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.

How We Gauge Health for 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:

• An Altman-Z score of 5.66 indicates that ATAT is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ATAT (5.66) is better than 89.47% of its industry peers.
• ATAT has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.06, ATAT belongs to the top of the industry, outperforming 95.49% of the companies in the same industry.
• 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.
• ATAT has a better Current ratio (1.97) than 84.96% of its industry peers.
• ATAT has a better Quick ratio (1.92) than 84.96% of its industry peers.

Evaluating Profitability: 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 better Return On Assets (16.16%) than 95.49% of its industry peers.
• Looking at the Return On Equity, with a value of 44.79%, ATAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
• ATAT has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. ATAT outperforms 92.48% 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.
• 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 Operating Margin of 21.33%. This is amongst the best in the industry. ATAT outperforms 81.20% of its industry peers.
• ATAT's Operating Margin has improved in the last couple of years.
• ATAT has a better Gross Margin (81.83%) than 95.49% 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.