Investors should take note of ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT), a growth stock that remains attractively priced.

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) has caught the eye of our stock screener as an affordable growth stock. ATAT is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Evaluating Growth: 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. ATAT has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 171.84% over the past year.
• The Revenue has grown by 76.11% in the past year. This is a very strong growth!
• 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.
• ATAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.43% yearly.
• Based on estimates for the next years, ATAT will show a very strong growth in Revenue. The Revenue will grow by 35.55% on average per year.

Evaluating Valuation: ATAT

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. ATAT has earned a 6 for valuation:

• ATAT's Price/Earnings ratio is a bit cheaper when compared to the industry. ATAT is cheaper than 60.45% of the companies in the same industry.
• 67.16% of the companies in the same industry are more expensive than ATAT, based on the Price/Forward Earnings ratio.
• Based on the Price/Free Cash Flow ratio, ATAT is valued a bit cheaper than 77.61% 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 31.43% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. ATAT was assigned a score of 8 for health:

• ATAT has an Altman-Z score of 5.96. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
• ATAT has a better Altman-Z score (5.96) than 88.81% 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.
• Looking at the Debt to FCF ratio, with a value of 0.06, ATAT belongs to the top of the industry, outperforming 94.78% of the companies in the same industry.
• A Debt/Equity ratio of 0.04 indicates that ATAT is not too dependend on debt financing.
• The Debt to Equity ratio of ATAT (0.04) is better than 88.06% of its industry peers.
• Looking at the Current ratio, with a value of 1.97, ATAT belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.92, ATAT belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.

What does the Profitability looks like for 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 ATAT, the assigned 8 is a significant indicator of profitability:

• ATAT's Return On Assets of 16.16% is amongst the best of the industry. ATAT outperforms 94.78% of its industry peers.
• With an excellent Return On Equity value of 44.79%, ATAT belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
• ATAT has a better Return On Invested Capital (19.32%) than 92.54% 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.
• The Profit Margin of ATAT (17.47%) is better than 91.04% of its industry peers.
• Looking at the Operating Margin, with a value of 21.33%, ATAT belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
• In the last couple of years the Operating Margin of ATAT has grown nicely.
• The Gross Margin of ATAT (81.83%) is better than 97.01% of its industry peers.

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

Our latest full fundamental report of ATAT contains the most current fundamental analsysis.

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.