Don't overlook NYSE:ATKR—it's a hidden gem with strong fundamentals and an attractive price tag.

Our stock screening tool has pinpointed ATKORE INC (NYSE:ATKR) as an undervalued stock option. NYSE:ATKR retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Assessment of 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 6.53, the valuation of ATKR can be described as very cheap.
• Based on the Price/Earnings ratio, ATKR is valued cheaper than 97.70% of the companies in the same industry.
• When comparing the Price/Earnings ratio of ATKR to the average of the S&P500 Index (29.70), we can say ATKR is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.71, the valuation of ATKR can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, ATKR is valued cheaper than 95.40% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of ATKR to the average of the S&P500 Index (24.16), we can say ATKR is valued rather cheaply.
• 98.85% of the companies in the same industry are more expensive than ATKR, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 96.55% of the companies listed in the same industry.
• The excellent profitability rating of ATKR may justify a higher PE ratio.

Assessing Profitability for NYSE:ATKR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ATKR has achieved a 9:

• The Return On Assets of ATKR (19.96%) is better than 100.00% of its industry peers.
• Looking at the Return On Equity, with a value of 39.16%, ATKR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• ATKR's Return On Invested Capital of 25.77% is amongst the best of the industry. ATKR outperforms 97.70% of its industry peers.
• ATKR had an Average Return On Invested Capital over the past 3 years of 32.71%. This is significantly above the industry average of 9.38%.
• The last Return On Invested Capital (25.77%) for ATKR is well below the 3 year average (32.71%), which needs to be investigated, but indicates that ATKR had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 15.07%, ATKR belongs to the top of the industry, outperforming 93.10% 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 20.00%, ATKR belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
• ATKR's Operating Margin has improved in the last couple of years.
• ATKR's Gross Margin of 34.20% is fine compared to the rest of the industry. ATKR outperforms 79.31% of its industry peers.
• In the last couple of years the Gross Margin of ATKR has grown nicely.

Health Insights: NYSE:ATKR

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ATKR scores a 9 out of 10:

• ATKR has an Altman-Z score of 4.45. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.45, ATKR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
• ATKR has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
• The Debt to FCF ratio of ATKR (1.94) is better than 85.06% of its industry peers.
• 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 2.98. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
• ATKR has a better Current ratio (2.98) than 77.01% of its industry peers.
• ATKR has a Quick ratio of 1.96. This is in the better half of the industry: ATKR outperforms 75.86% of its industry peers.

Growth Insights: 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 31.86% yearly.
• The Revenue has grown by 13.69% in the past year. This is quite good.
• ATKR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.81% yearly.

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

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

Keep in mind

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.