ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
108.96 USD
-1.69 (-1.53%)
110.49 USD
+1.53 (+1.4%)
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 72 industry peers in the Aerospace & Defense industry. ATI scores excellent on profitability, but there are some minor concerns on its financial health. ATI has a correct valuation and a medium 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.
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
ATI has a better Return On Assets (8.89%) than 90.28% of its industry peers.
Looking at the Return On Equity, with a value of 26.06%, ATI belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
The Return On Invested Capital of ATI (13.13%) is better than 90.28% 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 8.58%.
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
ATI has a better Profit Margin (9.71%) than 77.78% of its industry peers.
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 81.94% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a Gross Margin (21.83%) which is in line with 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.
ATI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.57 indicates that ATI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATI (4.57) 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.
With a decent Debt to FCF ratio value of 4.13, ATI is doing good in the industry, outperforming 79.17% 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.
The Debt to Equity ratio of ATI (1.00) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.36
WACC9.68%
2.3 Liquidity
A Current Ratio of 2.50 indicates that ATI has no problem at all paying its short term obligations.
The Current ratio of ATI (2.50) is comparable to the rest of the industry.
ATI has a Quick Ratio of 1.18. This is a normal value and indicates that ATI is financially healthy and should not expect problems in meeting its short term obligations.
ATI has a Quick ratio of 1.18. This is in the lower half of the industry: ATI underperforms 62.50% 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.
Measured over the past years, ATI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.34% on average per year.
Looking at the last year, ATI shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
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.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.15 indicates a quite expensive valuation of ATI.
Compared to the rest of the industry, the Price/Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 68.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (26.54), we can say ATI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.61, the valuation of ATI can be described as expensive.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.78. ATI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 27.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 72.22% of the companies listed 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 81.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.09 | ||
| EV/EBITDA | 20.17 |
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 23.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)2.29
EPS Next 2Y26.41%
EPS Next 3Y23.85%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.96
-1.69 (-1.53%)
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 Cap14.80B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price Target117.54 (7.87%)
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)0.95%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)2.62%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 27.61 | ||
| P/S | 3.23 | ||
| P/FCF | 32.09 | ||
| P/OCF | 21.26 | ||
| P/B | 8.67 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)3.1
EY2.85%
EPS(NY)3.95
Fwd EY3.62%
FCF(TTM)3.4
FCFY3.12%
OCF(TTM)5.13
OCFY4.7%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.15
PEG (5Y)2.29
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 | 4.57 |
F-Score8
WACC9.68%
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 35.15 and the Price/Book (PB) ratio is 8.67.
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.