Investors should take note of NASDAQ:ATAT, a growth stock that remains attractively priced.

Last update: Jan 22, 2025

Here's ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) for you, a growth stock our stock screener believes is undervalued. NASDAQ:ATAT is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

How We Gauge Growth for NASDAQ:ATAT

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ATAT has earned a 8 for growth:

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.
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.
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.

Analyzing Valuation Metrics

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 7 out of 10:

Based on the Price/Earnings ratio, ATAT is valued a bit cheaper than 64.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ATAT is valued a bit cheaper.
ATAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATAT is cheaper than 75.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. ATAT is valued slightly cheaper when compared to this.
ATAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATAT is cheaper than 80.15% 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.
ATAT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATAT's earnings are expected to grow with 31.17% in the coming years.

Health Assessment of 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 5.64. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.64, ATAT belongs to the best of the industry, outperforming 89.31% of the companies in the same industry.
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 95.42% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
ATAT's Debt to Equity ratio of 0.04 is amongst the best of the industry. ATAT outperforms 87.02% of its industry peers.
With an excellent Current ratio value of 1.97, ATAT belongs to the best of the industry, outperforming 84.73% of the companies in the same industry.
With an excellent Quick ratio value of 1.92, ATAT belongs to the best of the industry, outperforming 84.73% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:ATAT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ATAT, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 16.16%, ATAT belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
The Return On Equity of ATAT (44.79%) is better than 94.66% of its industry peers.
ATAT's Return On Invested Capital of 19.32% is amongst the best of the industry. ATAT outperforms 92.37% 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 has a Profit Margin of 17.47%. This is amongst the best in the industry. ATAT outperforms 92.37% of its industry peers.
ATAT has a Operating Margin of 21.33%. This is amongst the best in the industry. ATAT outperforms 80.92% of its industry peers.
ATAT's Operating Margin has improved in the last couple of years.
The Gross Margin of ATAT (81.83%) is better than 96.18% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

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.