ATI INC (ATI) Stock Fundamental Analysis
USA - NYSE:ATI - US01741R1023 - Common Stock
98.97 USD
-2.21 (-2.18%)
100.24 USD
+1.27 (+1.28%)
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 70 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.
In multiple years ATI reported negative net income over the last 5 years.
In the past 5 years ATI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.32%, ATI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Equity value of 23.96%, ATI belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
The Return On Invested Capital of ATI (12.43%) is better than 90.00% of its industry peers.
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 8.43%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(12.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 23.96% | ||
| ROIC | 12.43% |
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 9.27%, ATI is doing good in the industry, outperforming 77.14% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.83%, ATI belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
ATI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.35%, ATI perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
In the last couple of years the Gross Margin of ATI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.83% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% |
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.
ATI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATI has been increased compared to 5 years ago.
Compared to 1 year ago, ATI has an improved debt to assets ratio.
2.2 Solvency
ATI has an Altman-Z score of 4.32. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
ATI has a Altman-Z score (4.32) which is in line with its industry peers.
ATI has a debt to FCF ratio of 7.79. This is a slightly negative value and a sign of low solvency as ATI would need 7.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.79, ATI is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
ATI has a Debt/Equity ratio of 0.98. This is a neutral value indicating ATI is somewhat dependend on debt financing.
ATI's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. ATI is outperformed by 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.3
WACC9.54%
2.3 Liquidity
ATI has a Current Ratio of 2.52. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ATI (2.52) is comparable to the rest of the industry.
ATI has a Quick Ratio of 1.20. This is a normal value and indicates that ATI is financially healthy and should not expect problems in meeting its short term obligations.
ATI's Quick ratio of 1.20 is on the low side compared to the rest of the industry. ATI is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 |
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.
Looking at the last year, ATI shows a small growth in Revenue. The Revenue has grown by 4.51% in the last 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)4.51%
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 18.44% yearly.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.23% yearly.
EPS Next Y23.44%
EPS Next 2Y22.93%
EPS Next 3Y21.52%
EPS Next 5Y18.44%
Revenue Next Year8.06%
Revenue Next 2Y7.66%
Revenue Next 3Y7.6%
Revenue Next 5Y7.23%
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
ATI is valuated quite expensively with a Price/Earnings ratio of 31.93.
Compared to the rest of the industry, the Price/Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 74.29% of the companies listed in the same industry.
ATI is valuated rather expensively when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.52, the valuation of ATI can be described as expensive.
ATI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATI is cheaper than 70.00% of the companies in the same industry.
ATI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 26.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than 71.43% of the companies in the same industry.
ATI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.21 | ||
| EV/EBITDA | 19.81 |
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 21.52% in the coming years.
PEG (NY)1.36
PEG (5Y)2.08
EPS Next 2Y22.93%
EPS Next 3Y21.52%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
98.97
-2.21 (-2.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change0.29%
Ins Owners0.74%
Ins Owner Change-1.63%
Market Cap13.64B
Revenue(TTM)4.36B
Net Income(TTM)417.80M
Analysts81.33
Price Target105.81 (6.91%)
Short Float %2.53%
Short Ratio2.14
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)11.37%
Min EPS beat(2)2.42%
Max EPS beat(2)20.32%
EPS beat(4)3
Avg EPS beat(4)10.09%
Min EPS beat(4)-9.85%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)7.89%
EPS beat(12)11
Avg EPS beat(12)5.93%
EPS beat(16)15
Avg EPS beat(16)45.11%
Revenue beat(2)1
Avg Revenue beat(2)0.96%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)3.94%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)10
Avg Revenue beat(16)2.36%
PT rev (1m)1.33%
PT rev (3m)9.76%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 26.52 | ||
| P/S | 3.03 | ||
| P/FCF | 56.21 | ||
| P/OCF | 28.35 | ||
| P/B | 7.82 | ||
| P/tB | 9 | ||
| EV/EBITDA | 19.81 |
EPS(TTM)3.1
EY3.13%
EPS(NY)3.73
Fwd EY3.77%
FCF(TTM)1.76
FCFY1.78%
OCF(TTM)3.49
OCFY3.53%
SpS32.71
BVpS12.65
TBVpS11
PEG (NY)1.36
PEG (5Y)2.08
Graham Number29.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 23.96% | ||
| ROCE | 15.79% | ||
| ROIC | 12.43% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 14.43% | ||
| OM | 13.83% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% | ||
| FCFM | 5.38% |
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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.79 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 149.16% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.43% | ||
| Profit Quality | 58.09% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.32 |
F-Score8
WACC9.54%
ROIC/WACC1.3
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 Y23.44%
EPS Next 2Y22.93%
EPS Next 3Y21.52%
EPS Next 5Y18.44%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year8.06%
Revenue Next 2Y7.66%
Revenue Next 3Y7.6%
Revenue Next 5Y7.23%
EBIT growth 1Y25.84%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.75%
EBIT Next 3Y23.19%
EBIT Next 5Y18.03%
FCF growth 1Y377.76%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y109.04%
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 4 / 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 31.93 and the Price/Book (PB) ratio is 7.82.
What is the earnings growth outlook for ATI INC?
The Earnings per Share (EPS) of ATI INC (ATI) is expected to grow by 23.44% in the next year.