ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
122.3 USD
+3.71 (+3.13%)
123 USD
+0.7 (+0.57%)
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 71 industry peers in the Aerospace & Defense industry. While ATI has a great profitability rating, there are some minor concerns on its financial health. ATI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATI was profitable.
In the past year ATI had a positive cash flow from operations.
In multiple years ATI reported negative net income over the last 5 years.
Each year in the past 5 years ATI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.89%, ATI belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
With an excellent Return On Equity value of 26.06%, ATI belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.13%, ATI belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
ATI had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 8.54%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(13.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 26.06% | ||
| ROIC | 13.13% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.77%
ROE(5y)-49.01%
ROIC(3y)10.03%
ROIC(5y)6.93%
1.3 Margins
With a decent Profit Margin value of 9.71%, ATI is doing good in the industry, outperforming 77.46% of the companies in the same industry.
In the last couple of years the Profit Margin of ATI has grown nicely.
Looking at the Operating Margin, with a value of 14.33%, ATI belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
The Gross Margin of ATI (21.83%) is comparable to the rest of the industry.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 9.71% | ||
| GM | 21.83% |
OM growth 3Y49.73%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.18%
GM growth 3Y20.05%
GM growth 5Y5.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATI is creating some value.
The number of shares outstanding for ATI has been increased compared to 1 year ago.
ATI has more shares outstanding than it did 5 years ago.
ATI has a better debt/assets ratio than last year.
2.2 Solvency
ATI has an Altman-Z score of 4.86. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.86, ATI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
The Debt to FCF ratio of ATI is 4.13, which is a neutral value as it means it would take ATI, 4.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.13, ATI is doing good in the industry, outperforming 77.46% of the companies in the same industry.
ATI has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.00, ATI is not doing good in the industry: 77.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.86 |
ROIC/WACC1.39
WACC9.44%
2.3 Liquidity
ATI has a Current Ratio of 2.50. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.50, ATI is in line with its industry, outperforming 49.30% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that ATI should not have too much problems paying its short term obligations.
ATI has a worse Quick ratio (1.18) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
ATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.62%, which is quite impressive.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
The Revenue has been growing slightly by 7.75% in the past year.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
EPS 1Y (TTM)33.62%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%41.67%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
3.2 Future
ATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.88% yearly.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.30% yearly.
EPS Next Y30.76%
EPS Next 2Y26.67%
EPS Next 3Y23.96%
EPS Next 5Y19.88%
Revenue Next Year7.23%
Revenue Next 2Y7.76%
Revenue Next 3Y7.84%
Revenue Next 5Y7.3%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.45 indicates a quite expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (27.19), we can say ATI is valued slightly more expensively.
With a Price/Forward Earnings ratio of 30.86, ATI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 70.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. ATI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.45 | ||
| Fwd PE | 30.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than 69.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATI is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.02 | ||
| EV/EBITDA | 22.1 |
4.3 Compensation for Growth
ATI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ATI may justify a higher PE ratio.
ATI's earnings are expected to grow with 23.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)2.57
EPS Next 2Y26.67%
EPS Next 3Y23.96%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
122.3
+3.71 (+3.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.46%
Inst Owner Change0.06%
Ins Owners0.45%
Ins Owner Change1.44%
Market Cap16.62B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price Target120.26 (-1.67%)
Short Float %2.32%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.27%
Min EPS beat(2)2.42%
Max EPS beat(2)14.11%
EPS beat(4)4
Avg EPS beat(4)16.08%
Min EPS beat(4)2.42%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)9.24%
EPS beat(12)11
Avg EPS beat(12)7.09%
EPS beat(16)15
Avg EPS beat(16)24.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-1.27%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)9
Avg Revenue beat(16)1.81%
PT rev (1m)2.31%
PT rev (3m)17.22%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)6.43%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.45 | ||
| Fwd PE | 30.86 | ||
| P/S | 3.63 | ||
| P/FCF | 36.02 | ||
| P/OCF | 23.86 | ||
| P/B | 9.73 | ||
| P/tB | 11.21 | ||
| EV/EBITDA | 22.1 |
EPS(TTM)3.1
EY2.53%
EPS(NY)3.96
Fwd EY3.24%
FCF(TTM)3.4
FCFY2.78%
OCF(TTM)5.13
OCFY4.19%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.28
PEG (5Y)2.57
Graham Number29.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 26.06% | ||
| ROCE | 16.67% | ||
| ROIC | 13.13% | ||
| ROICexc | 14.49% | ||
| ROICexgc | 15.47% | ||
| OM | 14.33% | ||
| PM (TTM) | 9.71% | ||
| GM | 21.83% | ||
| FCFM | 10.07% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.77%
ROE(5y)-49.01%
ROIC(3y)10.03%
ROIC(5y)6.93%
ROICexc(3y)12.78%
ROICexc(5y)9.01%
ROICexgc(3y)14.09%
ROICexgc(5y)10%
ROCE(3y)12.74%
ROCE(5y)8.81%
ROICexgc growth 3Y44.81%
ROICexgc growth 5Y12.7%
ROICexc growth 3Y48.17%
ROICexc growth 5Y14.31%
OM growth 3Y49.73%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.18%
GM growth 3Y20.05%
GM growth 5Y5.88%
F-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 142.86% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.78% | ||
| Profit Quality | 103.71% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.86 |
F-Score8
WACC9.44%
ROIC/WACC1.39
Cap/Depr(3y)128.93%
Cap/Depr(5y)117.62%
Cap/Sales(3y)4.57%
Cap/Sales(5y)4.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.62%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%41.67%
EPS Next Y30.76%
EPS Next 2Y26.67%
EPS Next 3Y23.96%
EPS Next 5Y19.88%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year7.23%
Revenue Next 2Y7.76%
Revenue Next 3Y7.84%
Revenue Next 5Y7.3%
EBIT growth 1Y28.08%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year50.49%
EBIT Next 3Y24.48%
EBIT Next 5Y18.62%
FCF growth 1Y349.76%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y10047.1%
OCF growth 3Y192.98%
OCF growth 5Y11.97%
ATI INC / ATI FAQ
Can you provide the ChartMill fundamental rating for ATI INC?
ChartMill assigns a fundamental rating of 6 / 10 to ATI.
Can you provide the valuation status for ATI INC?
ChartMill assigns a valuation rating of 5 / 10 to ATI INC (ATI). This can be considered as Fairly Valued.
What is the profitability of ATI stock?
ATI INC (ATI) has a profitability rating of 8 / 10.
What is the financial health of ATI INC (ATI) stock?
The financial health rating of ATI INC (ATI) is 5 / 10.
Can you provide the dividend sustainability for ATI stock?
The dividend rating of ATI INC (ATI) is 0 / 10 and the dividend payout ratio is 0%.