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

Uncover the potential of ATKORE INC (NYSE:ATKR) as our stock screener's choice for an undervalued stock. NYSE:ATKR maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NYSE:ATKR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ATKR, the assigned 8 reflects its valuation:

• A Price/Earnings ratio of 7.45 indicates a rather cheap valuation of ATKR.
• Based on the Price/Earnings ratio, ATKR is valued cheaper than 97.83% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 24.50, ATKR is valued rather cheaply.
• A Price/Forward Earnings ratio of 7.45 indicates a rather cheap valuation of ATKR.
• 95.65% 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 20.94, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 94.57% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ATKR is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
• ATKR has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

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:

• Looking at the Return On Assets, with a value of 20.22%, ATKR belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
• With an excellent Return On Equity value of 38.77%, ATKR belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 24.34%, ATKR belongs to the best of the industry, outperforming 97.83% 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 11.09%.
• 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.
• ATKR has a better Profit Margin (18.03%) than 96.74% of its industry peers.
• ATKR's Profit Margin has improved in the last couple of years.
• ATKR's Operating Margin of 22.96% is amongst the best of the industry. ATKR outperforms 96.74% 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 36.52%, ATKR belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
• ATKR's Gross Margin has improved in the last couple of years.

Health Assessment of NYSE:ATKR

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ATKR has achieved a 9 out of 10:

• ATKR has an Altman-Z score of 4.95. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.95, ATKR belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
• ATKR has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.78, ATKR belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
• ATKR has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 3.09 indicates that ATKR has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.09, ATKR is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
• The Quick ratio of ATKR (1.98) is better than 73.91% of its industry peers.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ATKR boasts a 4 out of 10:

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

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.