Investors should take notice of NYSE:ATKR—it offers a great deal for the fundamentals it presents.

Last update: Dec 25, 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.

Understanding NYSE:ATKR's Valuation Score

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ATKR boasts a 8 out of 10:

With a Price/Earnings ratio of 5.77, 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 97.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, ATKR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.67, which indicates a very decent valuation of ATKR.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaper than 93.18% of the companies in the same industry.
ATKR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.99, 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 98.86% of the companies listed 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 96.59% of the companies listed in the same industry.
The excellent profitability rating of ATKR may justify a higher PE ratio.

Profitability Analysis for NYSE:ATKR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ATKR has earned a 9 out of 10:

The Return On Assets of ATKR (19.96%) is better than 100.00% of its industry peers.
ATKR has a Return On Equity of 39.16%. This is amongst the best in the industry. ATKR outperforms 100.00% of its industry peers.
ATKR has a better Return On Invested Capital (25.77%) than 97.73% 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.
ATKR has a better Profit Margin (15.07%) than 93.18% of its industry peers.
ATKR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.00%, ATKR belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
In the last couple of years the Operating Margin of ATKR has grown nicely.
With a decent Gross Margin value of 34.20%, ATKR is doing good in the industry, outperforming 79.55% of the companies in the same industry.
In the last couple of years the Gross Margin of ATKR has grown nicely.

Health Assessment of NYSE:ATKR

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ATKR, the assigned 9 for health provides valuable insights:

ATKR has an Altman-Z score of 4.26. 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 4.26, ATKR belongs to the top of the industry, outperforming 80.68% of the companies in the same industry.
The Debt to FCF ratio of ATKR is 1.94, which is an excellent value as it means it would take ATKR, only 1.94 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.94, ATKR belongs to the best of the industry, outperforming 85.23% 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.
A Current Ratio of 2.98 indicates that ATKR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.98, ATKR is doing good in the industry, outperforming 77.27% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.96, ATKR is in the better half of the industry, outperforming 76.14% of the companies in the same industry.

What does the Growth looks like for NYSE:ATKR

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 31.86% on average over the past years. This is a very strong growth
The Revenue has grown by 13.69% in the past year. This is quite good.
Measured over the past years, ATKR shows a quite strong growth in Revenue. The Revenue has been growing by 10.81% on average per year.

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

Check the latest full fundamental report of ATKR for a complete fundamental analysis.

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.