NYSE:ATKR appears to be flying under the radar despite its strong fundamentals.

Last update: Jan 16, 2025

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.

Looking at the Valuation

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:

With a Price/Earnings ratio of 5.80, 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 98.90% of the companies listed in the same industry.
ATKR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
ATKR is valuated reasonably with a Price/Forward Earnings ratio of 9.73.
ATKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 94.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATKR to the average of the S&P500 Index (23.76), we can say ATKR is valued rather cheaply.
98.90% 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 96.70% of the companies listed in the same industry.
The excellent profitability rating of ATKR may justify a higher PE ratio.

Exploring NYSE:ATKR's Profitability

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 10:

ATKR's Return On Assets of 19.96% is amongst the best of the industry. ATKR outperforms 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 98.90% of the companies in the same industry.
The Return On Invested Capital of ATKR (25.77%) is better than 96.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATKR is significantly above the industry average of 10.46%.
The 3 year average ROIC (32.71%) for ATKR is well above the current ROIC(25.77%). The reason for the recent decline needs to be investigated.
The Profit Margin of ATKR (15.07%) is better than 93.41% of its industry peers.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR's Operating Margin of 20.00% is amongst the best of the industry. ATKR outperforms 97.80% of its industry peers.
ATKR's Operating Margin has improved in the last couple of years.
ATKR has a Gross Margin of 34.20%. This is amongst the best in the industry. ATKR outperforms 80.22% of its industry peers.
In the last couple of years the Gross Margin of ATKR has grown nicely.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ATKR was assigned a score of 9 for health:

An Altman-Z score of 4.26 indicates that ATKR is not in any danger for 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 81.32% 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.
ATKR has a better Debt to FCF ratio (1.94) than 85.71% 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.
With a decent Current ratio value of 2.98, ATKR is doing good in the industry, outperforming 78.02% of the companies in the same industry.
ATKR has a better Quick ratio (1.96) than 76.92% of its industry peers.

Growth Insights: NYSE:ATKR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ATKR has received a 4 out of 10:

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

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

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.