NYSE:ATKR is probably undervalued for the fundamentals it is displaying.

Last update: Apr 10, 2024

ATKORE INC (NYSE:ATKR) was identified as a decent value stock by our stock screener. NYSE:ATKR scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

How We Gauge Valuation for NYSE:ATKR

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. NYSE:ATKR has achieved a 8 out of 10:

ATKR is valuated reasonably with a Price/Earnings ratio of 9.36.
ATKR's Price/Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 95.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.26. ATKR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.65, the valuation of ATKR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.55. ATKR is valued rather cheaply when compared to this.
92.94% of the companies in the same industry are more expensive than ATKR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ATKR is valued cheaply inside the industry as 91.76% of the companies are valued more expensively.
ATKR has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:ATKR

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 NYSE:ATKR, the assigned 10 is a significant indicator of profitability:

ATKR has a Return On Assets of 21.96%. This is amongst the best in the industry. ATKR outperforms 97.65% of its industry peers.
ATKR's Return On Equity of 42.91% is amongst the best of the industry. ATKR outperforms 97.65% of its industry peers.
With an excellent Return On Invested Capital value of 27.05%, ATKR belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
ATKR had an Average Return On Invested Capital over the past 3 years of 37.67%. This is significantly above the industry average of 11.35%.
The last Return On Invested Capital (27.05%) for ATKR is well below the 3 year average (37.67%), which needs to be investigated, but indicates that ATKR had better years and this may not be a problem.
ATKR's Profit Margin of 18.51% is amongst the best of the industry. ATKR outperforms 96.47% of its industry peers.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR has a better Operating Margin (24.04%) than 97.65% of its industry peers.
In the last couple of years the Operating Margin of ATKR has grown nicely.
With an excellent Gross Margin value of 37.20%, ATKR belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
ATKR's Gross Margin has improved in the last couple of years.

Assessing Health for NYSE:ATKR

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. NYSE:ATKR was assigned a score of 9 for health:

ATKR has an Altman-Z score of 5.75. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.75, ATKR belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
The Debt to FCF ratio of ATKR is 1.42, which is an excellent value as it means it would take ATKR, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, ATKR belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
Although ATKR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
ATKR has a Current Ratio of 2.96. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
ATKR has a Current ratio of 2.96. This is in the better half of the industry: ATKR outperforms 75.29% of its industry peers.
ATKR has a better Quick ratio (1.99) than 75.29% of its industry peers.

How do we evaluate the Growth for NYSE:ATKR?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ATKR has achieved a 4 out of 10:

The Earnings Per Share has been growing by 47.93% on average over the past years. This is a very strong growth
The Revenue has been growing by 13.91% on average over the past years. This is quite good.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.