ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
100.41 USD
+0.01 (+0.01%)
100.41 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. ATI scores excellent on profitability, but 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.
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 has a Return On Assets of 8.89%. This is amongst the best in the industry. ATI outperforms 90.14% of its industry peers.
ATI has a Return On Equity of 26.06%. This is amongst the best in 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 8.57%.
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
Looking at the Profit Margin, with a value of 9.71%, ATI is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.33%, ATI belongs to the best 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.
ATI's Gross Margin of 21.83% is in line compared to the rest of the industry. ATI outperforms 43.66% of its industry peers.
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.
Compared to 1 year ago, ATI has more shares outstanding
ATI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ATI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.32 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI's Altman-Z score of 4.32 is in line compared to the rest of the industry. ATI outperforms 59.15% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.13, ATI is doing good in the industry, outperforming 78.87% of the companies in the same industry.
A Debt/Equity ratio of 1.00 is on the high side and indicates that ATI has dependencies on debt 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 | 4.32 |
ROIC/WACC1.35
WACC9.71%
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.
ATI's Current ratio of 2.50 is in line compared to the rest of the industry. ATI outperforms 53.52% 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 Quick ratio (1.18) which is comparable to the rest of the industry.
| 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.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 1.14% on average per year.
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
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.18% on average over the next years.
EPS Next Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
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
Based on the Price/Earnings ratio of 32.39, the valuation of ATI can be described as expensive.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ATI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 26.05, ATI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than 73.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. ATI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.39 | ||
| Fwd PE | 26.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than 74.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATI indicates a rather cheap valuation: ATI is cheaper than 81.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 18.48 |
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.
ATI's earnings are expected to grow with 22.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)2.11
EPS Next 2Y24.92%
EPS Next 3Y22.9%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.41
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change-2.75%
Ins Owners0.74%
Ins Owner Change-1.78%
Market Cap13.64B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts81.33
Price Target117.54 (17.06%)
Short Float %2.06%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)18.52%
EPS NQ rev (1m)5.97%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)3.17%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)-2.36%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.39 | ||
| Fwd PE | 26.05 | ||
| P/S | 2.98 | ||
| P/FCF | 29.57 | ||
| P/OCF | 19.59 | ||
| P/B | 7.99 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)3.1
EY3.09%
EPS(NY)3.85
Fwd EY3.84%
FCF(TTM)3.4
FCFY3.38%
OCF(TTM)5.13
OCFY5.1%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.18
PEG (5Y)2.11
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 | 4.32 |
F-Score8
WACC9.71%
ROIC/WACC1.35
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 Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
Revenue Next 5Y7.18%
EBIT growth 1Y28.08%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.75%
EBIT Next 3Y23.19%
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 6 / 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 32.39 and the Price/Book (PB) ratio is 7.99.
What is the earnings growth outlook for ATI INC?
The Earnings per Share (EPS) of ATI INC (ATI) is expected to grow by 27.36% in the next year.