In a market where value is scarce, NYSE:ATKR offers a refreshing opportunity with its solid fundamentals.

Our stock screener has singled out ATKORE INC (NYSE:ATKR) as a stellar value proposition. NYSE:ATKR not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Evaluating Valuation: NYSE:ATKR

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ATKR was assigned a score of 8 for valuation:

• Based on the Price/Earnings ratio of 7.55, the valuation of ATKR can be described as very cheap.
• Compared to the rest of the industry, the Price/Earnings ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 97.67% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.66. ATKR is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 7.55, the valuation of ATKR can be described as very cheap.
• 95.35% of the companies in the same industry are more expensive than ATKR, based on the Price/Forward Earnings ratio.
• ATKR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
• ATKR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATKR is cheaper than 94.19% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 89.53% of the companies listed in the same industry.
• ATKR has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NYSE:ATKR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ATKR was assigned a score of 10 for profitability:

• ATKR has a Return On Assets of 20.22%. This is amongst the best in the industry. ATKR outperforms 97.67% of its industry peers.
• Looking at the Return On Equity, with a value of 38.77%, ATKR belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
• ATKR has a Return On Invested Capital of 24.34%. This is amongst the best in the industry. ATKR outperforms 97.67% of its industry peers.
• ATKR had an Average Return On Invested Capital over the past 3 years of 37.67%. This is significantly above the industry average of 11.21%.
• The 3 year average ROIC (37.67%) for ATKR is well above the current ROIC(24.34%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 18.03%, ATKR belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
• In the last couple of years the Profit Margin of ATKR has grown nicely.
• ATKR's Operating Margin of 22.96% is amongst the best of the industry. ATKR outperforms 96.51% of its industry peers.
• ATKR's Operating Margin has improved in the last couple of years.
• ATKR has a better Gross Margin (36.52%) than 86.05% of its industry peers.
• In the last couple of years the Gross Margin of ATKR has grown nicely.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ATKR has received a 9 out of 10:

• ATKR has an Altman-Z score of 4.98. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
• ATKR's Altman-Z score of 4.98 is amongst the best of the industry. ATKR outperforms 82.56% of its industry peers.
• The Debt to FCF ratio of ATKR is 1.78, which is an excellent value as it means it would take ATKR, only 1.78 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 1.78, ATKR belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
• A Debt/Equity ratio of 0.49 indicates that ATKR is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for ATKR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• ATKR has a Current Ratio of 3.09. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
• ATKR's Current ratio of 3.09 is fine compared to the rest of the industry. ATKR outperforms 74.42% of its industry peers.
• With a decent Quick ratio value of 1.98, ATKR is doing good in the industry, outperforming 73.26% of the companies in the same industry.

Evaluating Growth: NYSE:ATKR

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. NYSE:ATKR has earned a 4 for growth:

• ATKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.93% yearly.
• ATKR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.91% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

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.