ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
116.64 USD
+0.43 (+0.37%)
116.64 USD
0 (0%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ATI was profitable.
ATI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ATI reported negative net income in multiple years.
ATI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATI's Return On Assets of 8.89% is amongst the best of the industry. ATI outperforms 90.14% of its industry peers.
ATI's Return On Equity of 26.06% is amongst the best of the industry. ATI outperforms 95.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.13%, ATI belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATI is in line with the industry average of 8.60%.
The last Return On Invested Capital (13.13%) for ATI is above the 3 year average (10.03%), which is a sign of increasing profitability.
| 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
The Profit Margin of ATI (9.71%) is better than 77.46% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
The Operating Margin of ATI (14.33%) is better than 81.69% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
The Gross Margin of ATI (21.83%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ATI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATI is still 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
An Altman-Z score of 4.72 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score (4.72) which is comparable to the rest of the industry.
ATI has a debt to FCF ratio of 4.13. This is a neutral value as ATI would need 4.13 years to pay back of all of its debts.
ATI's Debt to FCF ratio of 4.13 is fine compared to the rest of the industry. ATI outperforms 78.87% of its industry peers.
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: 80.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.72 |
ROIC/WACC1.36
WACC9.66%
2.3 Liquidity
A Current Ratio of 2.50 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.50 is in line compared to the rest of the industry. ATI outperforms 47.89% of its industry peers.
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 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.62% over the past year.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
The Revenue has been growing slightly by 1.14% on average over the past years.
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 18.02% yearly.
The Revenue is expected to grow by 7.18% on average over the next years.
EPS Next Y30.69%
EPS Next 2Y26.41%
EPS Next 3Y23.85%
EPS Next 5Y18.02%
Revenue Next Year7.32%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.18%
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 stable.
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
With a Price/Earnings ratio of 37.63, ATI can be considered very expensive at the moment.
67.61% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ATI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 29.55, 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 69.01% of the companies listed in the same industry.
ATI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 78.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.35 | ||
| EV/EBITDA | 21.16 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 23.85% in the coming years.
PEG (NY)1.23
PEG (5Y)2.45
EPS Next 2Y26.41%
EPS Next 3Y23.85%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
116.64
+0.43 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change-2.74%
Ins Owners0.46%
Ins Owner Change-1.52%
Market Cap15.85B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price TargetN/A
Short Float %2.26%
Short Ratio2.07
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)11.09%
PT rev (3m)16.1%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)6.88%
EPS NY rev (1m)2.62%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 29.55 | ||
| P/S | 3.46 | ||
| P/FCF | 34.35 | ||
| P/OCF | 22.76 | ||
| P/B | 9.28 | ||
| P/tB | 10.69 | ||
| EV/EBITDA | 21.16 |
EPS(TTM)3.1
EY2.66%
EPS(NY)3.95
Fwd EY3.38%
FCF(TTM)3.4
FCFY2.91%
OCF(TTM)5.13
OCFY4.39%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.23
PEG (5Y)2.45
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 | 4.72 |
F-Score8
WACC9.66%
ROIC/WACC1.36
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 Y30.69%
EPS Next 2Y26.41%
EPS Next 3Y23.85%
EPS Next 5Y18.02%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year7.32%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.18%
EBIT growth 1Y28.08%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year49.93%
EBIT Next 3Y24.41%
EBIT Next 5Y17.92%
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.
What is the valuation status of ATI INC (ATI) stock?
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 valuation of ATI INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ATI INC (ATI) is 37.63 and the Price/Book (PB) ratio is 9.28.
What is the earnings growth outlook for ATI INC?
The Earnings per Share (EPS) of ATI INC (ATI) is expected to grow by 30.69% in the next year.