ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) is showing good growth, while it is not too expensive.

Our stock screener has singled out ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as an attractive growth opportunity. NASDAQ:ATAT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth for NASDAQ:ATAT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ATAT, the assigned 8 reflects its growth potential:

• 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%.
• The Revenue has been growing by 43.88% on average over the past years. This is a very strong growth!
• ATAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.43% yearly.
• ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.56% yearly.

Unpacking NASDAQ:ATAT's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:ATAT has earned a 6 for valuation:

• Based on the Price/Earnings ratio, ATAT is valued a bit cheaper than 61.83% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, ATAT is valued a bit cheaper than the industry average as 67.94% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ATAT is valued a bit cheaper than the industry average as 78.63% of the companies are valued more expensively.
• 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 31.43% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:ATAT's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ATAT, the assigned 8 for health provides valuable insights:

• ATAT has an Altman-Z score of 6.01. 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 6.01, ATAT belongs to the top of the industry, outperforming 90.08% 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.
• ATAT's Debt to FCF ratio of 0.06 is amongst the best of the industry. ATAT outperforms 95.42% 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 87.79% of the companies in the same industry.
• ATAT's Current ratio of 1.97 is amongst the best of the industry. ATAT outperforms 85.50% of its industry peers.
• ATAT's Quick ratio of 1.92 is amongst the best of the industry. ATAT outperforms 85.50% of its industry peers.

Assessing 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:

• ATAT has a better Return On Assets (16.16%) than 94.66% of its industry peers.
• ATAT has a better Return On Equity (44.79%) than 93.89% of its industry peers.
• ATAT has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. ATAT outperforms 91.60% of its industry peers.
• 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 90.84% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 21.33%, ATAT belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.
• In the last couple of years the Operating Margin of ATAT has grown nicely.
• Looking at the Gross Margin, with a value of 81.83%, ATAT belongs to the top of the industry, outperforming 96.18% of the companies in the same industry.

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

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.