When you look at NYSE:ATKR, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Discover ATKORE INC (NYSE:ATKR)—an undervalued stock our stock screener has picked out. NYSE:ATKR demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Examination for NYSE:ATKR

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. NYSE:ATKR has earned a 8 for valuation:

• The Price/Earnings ratio is 7.23, which indicates a rather cheap valuation of ATKR.
• ATKR's Price/Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 97.67% of the companies in the same industry.
• ATKR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.45.
• Based on the Price/Forward Earnings ratio of 7.24, the valuation of ATKR can be described as very cheap.
• Based on the Price/Forward Earnings ratio, ATKR is valued cheaper than 95.35% of the companies in the same industry.
• ATKR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.21.
• 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.

Assessing Profitability for NYSE:ATKR

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ATKR scores a 10 out of 10:

• 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.
• ATKR has a better Return On Equity (38.77%) than 97.67% of its industry peers.
• With an excellent Return On Invested Capital value of 24.34%, ATKR belongs to the best of the industry, outperforming 97.67% 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 11.18%.
• 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.
• With an excellent Profit Margin value of 18.03%, ATKR belongs to the best 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.
• Looking at the Operating Margin, with a value of 22.96%, ATKR belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
• 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.
• ATKR's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NYSE:ATKR?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ATKR has earned a 9 out of 10:

• ATKR has an Altman-Z score of 4.89. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
• ATKR has a Altman-Z score of 4.89. This is amongst the best in the industry. ATKR outperforms 83.72% 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.
• ATKR has a Debt to FCF ratio of 1.78. This is amongst the best in the industry. ATKR outperforms 87.21% of its industry peers.
• 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.
• A Current Ratio of 3.09 indicates that ATKR has no problem at all paying its short term obligations.
• ATKR has a better Current ratio (3.09) than 74.42% of its industry peers.
• ATKR's Quick ratio of 1.98 is fine compared to the rest of the industry. ATKR outperforms 72.09% of its industry peers.

Understanding NYSE:ATKR's Growth Score

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ATKR was assigned a score of 4 for growth:

• 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.

Our latest full fundamental report of ATKR 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.