ATGE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 76 industry peers in the Diversified Consumer Services industry. ATGE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ATGE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ATGE very considerable for value and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ATGE was profitable.
In the past year ATGE had a positive cash flow from operations.
Each year in the past 5 years ATGE has been profitable.
Each year in the past 5 years ATGE had a positive operating cash flow.

1.2 Ratios

ATGE has a better Return On Assets (8.81%) than 77.63% of its industry peers.
Looking at the Return On Equity, with a value of 17.34%, ATGE is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.67%, ATGE belongs to the top of the industry, outperforming 85.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATGE is in line with the industry average of 10.17%.
The 3 year average ROIC (9.63%) for ATGE is below the current ROIC(12.67%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	8.81%
ROE	17.34%
ROIC	12.67%

ROA(3y)5.64%

ROA(5y)5.9%

ROE(3y)10.98%

ROE(5y)11.83%

ROIC(3y)9.63%

ROIC(5y)7.66%

1.3 Margins

The Profit Margin of ATGE (13.79%) is better than 82.89% of its industry peers.
In the last couple of years the Profit Margin of ATGE has declined.
Looking at the Operating Margin, with a value of 19.55%, ATGE belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ATGE has grown nicely.
ATGE has a Gross Margin of 57.11%. This is in the better half of the industry: ATGE outperforms 72.37% of its industry peers.
ATGE's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	19.55%
PM (TTM)	13.79%
GM	57.11%

OM growth 3Y19.65%

OM growth 5Y4.08%

PM growth 3Y-16.17%

PM growth 5YN/A

GM growth 3Y2.86%

GM growth 5Y1.26%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATGE is creating some value.
ATGE has less shares outstanding than it did 1 year ago.
ATGE has less shares outstanding than it did 5 years ago.
ATGE has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.04 indicates that ATGE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.04, ATGE belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Debt to FCF ratio of ATGE is 1.71, which is an excellent value as it means it would take ATGE, only 1.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ATGE (1.71) is better than 82.89% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that ATGE is not too dependend on debt financing.
ATGE has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: ATGE outperforms 48.68% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	1.71
Altman-Z	4.04

ROIC/WACC1.48

WACC8.54%

2.3 Liquidity

ATGE has a Current Ratio of 0.98. This is a bad value and indicates that ATGE is not financially healthy enough and could expect problems in meeting its short term obligations.
ATGE has a Current ratio of 0.98. This is comparable to the rest of the industry: ATGE outperforms 43.42% of its industry peers.
A Quick Ratio of 0.98 indicates that ATGE may have some problems paying its short term obligations.
ATGE's Quick ratio of 0.98 is in line compared to the rest of the industry. ATGE outperforms 46.05% of its industry peers.
The current and quick ratio evaluation for ATGE is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	0.98
Quick Ratio	0.98

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.98% over the past year.
Measured over the past years, ATGE shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.77% on average per year.
Looking at the last year, ATGE shows a quite strong growth in Revenue. The Revenue has grown by 12.85% in the last year.
The Revenue has been growing by 11.19% on average over the past years. This is quite good.

EPS 1Y (TTM)29.98%

EPS 3Y23.46%

EPS 5Y23.77%

EPS Q2Q%34.25%

Revenue 1Y (TTM)12.85%

Revenue growth 3Y8.97%

Revenue growth 5Y11.19%

Sales Q2Q%12.43%

3.2 Future

Based on estimates for the next years, ATGE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.23% on average per year.
ATGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.71% yearly.

EPS Next Y19.67%

EPS Next 2Y16.31%

EPS Next 3Y17.23%

EPS Next 5YN/A

Revenue Next Year8.63%

Revenue Next 2Y7.36%

Revenue Next 3Y6.71%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.34, which indicates a correct valuation of ATGE.
76.32% of the companies in the same industry are more expensive than ATGE, based on the Price/Earnings ratio.
ATGE is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.46, the valuation of ATGE can be described as reasonable.
82.89% of the companies in the same industry are more expensive than ATGE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATGE to the average of the S&P500 Index (25.57), we can say ATGE is valued rather cheaply.

		Industry Rank	Sector Rank
PE	13.34
Fwd PE	11.46

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than the industry average as 67.11% of the companies are valued more expensively.
81.58% of the companies in the same industry are more expensive than ATGE, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	11.64
EV/EBITDA	9.86

4.3 Compensation for Growth

ATGE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ATGE may justify a higher PE ratio.
ATGE's earnings are expected to grow with 17.23% in the coming years. This may justify a more expensive valuation.