We assign a fundamental rating of 4 out of 10 to ALTM. ALTM was compared to 83 industry peers in the Chemicals industry. While ALTM is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, ALTM is valued expensive at the moment.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ALTM was profitable.
In the past year ALTM has reported a negative cash flow from operations.
ALTM had positive earnings in 4 of the past 5 years.
ALTM had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

ALTM has a Return On Assets (1.01%) which is in line with its industry peers.
ALTM has a Return On Equity of 1.65%. This is comparable to the rest of the industry: ALTM outperforms 45.88% of its industry peers.
With a Return On Invested Capital value of 2.86%, ALTM is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ALTM is above the industry average of 6.11%.
The 3 year average ROIC (8.50%) for ALTM is well above the current ROIC(2.86%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	1.01%
ROE	1.65%
ROIC	2.86%

ROA(3y)8.14%

ROA(5y)4.55%

ROE(3y)13.03%

ROE(5y)7.26%

ROIC(3y)8.5%

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 10.24%, ALTM belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ALTM has declined.
ALTM's Operating Margin of 36.16% is amongst the best of the industry. ALTM outperforms 96.47% of its industry peers.
ALTM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 49.37%, ALTM belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
In the last couple of years the Gross Margin of ALTM has grown nicely.

		Industry Rank	Sector Rank
OM	36.16%
PM (TTM)	10.24%
GM	49.37%

OM growth 3Y339.85%

OM growth 5Y12.09%

PM growth 3Y315.53%

PM growth 5Y-4.55%

GM growth 3Y27%

GM growth 5Y9.04%

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ROA

ROE

ROIC

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2. Health

2.1 Basic Checks

ALTM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ALTM has been increased compared to 1 year ago.
Compared to 5 years ago, ALTM has more shares outstanding
Compared to 1 year ago, ALTM has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.29, we must say that ALTM is in the distress zone and has some risk of bankruptcy.
ALTM has a worse Altman-Z score (1.29) than 68.24% of its industry peers.
ALTM has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.11, ALTM belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	1.29

ROIC/WACC0.4

WACC7.06%

2.3 Liquidity

A Current Ratio of 1.09 indicates that ALTM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, ALTM is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
ALTM has a Quick Ratio of 1.09. This is a bad value and indicates that ALTM is not financially healthy enough and could expect problems in meeting its short term obligations.
ALTM has a Quick ratio of 0.56. This is amonst the worse of the industry: ALTM underperforms 83.53% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	0.56

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3. Growth

3.1 Past

ALTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.56%.
The earnings per share for ALTM have been decreasing by -77.97% on average. This is quite bad
ALTM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.20%.
ALTM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.01% yearly.

EPS 1Y (TTM)-94.56%

EPS 3YN/A

EPS 5Y-77.97%

EPS Q2Q%-97.06%

Revenue 1Y (TTM)14.2%

Revenue growth 3Y33.84%

Revenue growth 5Y21.01%

Sales Q2Q%58.97%

3.2 Future

Based on estimates for the next years, ALTM will show a very strong growth in Earnings Per Share. The EPS will grow by 53.89% on average per year.
The Revenue is expected to grow by 16.62% on average over the next years. This is quite good.

EPS Next Y11.36%

EPS Next 2Y51.71%

EPS Next 3Y62.79%

EPS Next 5Y53.89%

Revenue Next Year15.71%

Revenue Next 2Y16.95%

Revenue Next 3Y27.33%

Revenue Next 5Y16.62%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

ALTM is valuated quite expensively with a Price/Earnings ratio of 44.92.
ALTM's Price/Earnings ratio is a bit more expensive when compared to the industry. ALTM is more expensive than 65.88% of the companies in the same industry.
ALTM is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 40.34, ALTM can be considered very expensive at the moment.
ALTM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ALTM is more expensive than 68.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALTM to the average of the S&P500 Index (25.96), we can say ALTM is valued expensively.

		Industry Rank	Sector Rank
PE	44.92
Fwd PE	40.34

4.2 Price Multiples

62.35% of the companies in the same industry are cheaper than ALTM, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.62

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ALTM may justify a higher PE ratio.
A more expensive valuation may be justified as ALTM's earnings are expected to grow with 62.79% in the coming years.