ATI INC (ATI) Stock Fundamental Analysis
NYSE:ATI - New York Stock Exchange, Inc. - US01741R1023 - Common Stock
ATI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. While ATI has a great profitability rating, 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
ATI had positive earnings in the past year.
In the past year ATI had a positive cash flow from operations.
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 8.28% is amongst the best of the industry. ATI outperforms 84.35% of its industry peers.
ATI has a Return On Equity of 23.43%. This is amongst the best in the industry. ATI outperforms 95.92% of its industry peers.
With an excellent Return On Invested Capital value of 11.25%, ATI belongs to the best of the industry, outperforming 87.76% 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 8.76%.
The last Return On Invested Capital (11.25%) for ATI is above the 3 year average (8.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 23.43% | ||
| ROIC | 11.25% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.29%
ROIC(5y)6.87%
1.3 Margins
With an excellent Profit Margin value of 9.87%, ATI belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
In the last couple of years the Profit Margin of ATI has grown nicely.
ATI has a Operating Margin of 12.05%. This is in the better half of the industry: ATI outperforms 68.03% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a Gross Margin of 20.18%. This is comparable to the rest of the industry: ATI outperforms 57.14% of its industry peers.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.05% | ||
| PM (TTM) | 9.87% | ||
| GM | 20.18% |
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ATI has more shares outstanding
Compared to 1 year ago, ATI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.12 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score (3.12) which is in line with its industry peers.
The Debt to FCF ratio of ATI is 10.52, which is on the high side as it means it would take ATI, 10.52 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.52, ATI perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
ATI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
ATI has a Debt to Equity ratio of 1.04. This is amonst the worse of the industry: ATI underperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.52 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.01
WACC11.16%
2.3 Liquidity
ATI has a Current Ratio of 2.94. 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 2.94, ATI is in the better half of the industry, outperforming 62.59% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that ATI should not have too much problems paying its short term obligations.
ATI has a Quick ratio (1.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.41% 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 8.35% on average per year.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.62% yearly.
EPS 1Y (TTM)7.41%
EPS 3YN/A
EPS 5Y8.35%
EPS Q2Q%9.09%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Sales Q2Q%2.5%
3.2 Future
The Earnings Per Share is expected to grow by 18.94% on average over the next years. This is quite good.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y1.94%
EPS Next 2Y13.13%
EPS Next 3Y16.22%
EPS Next 5Y18.94%
Revenue Next Year3.2%
Revenue Next 2Y4.94%
Revenue Next 3Y5.63%
Revenue Next 5Y5.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.77 indicates a rather expensive valuation of ATI.
63.95% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (28.29), we can say ATI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.78, the valuation of ATI can be described as rather expensive.
ATI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. ATI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATI.
ATI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ATI is cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.76 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.22% in the coming years.
PEG (NY)12.77
PEG (5Y)2.97
EPS Next 2Y13.13%
EPS Next 3Y16.22%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATI INC
NYSE:ATI (1/22/2025, 4:31:36 PM)
After market: 57.46 0 (0%)57.46
-1.01 (-1.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners107.67%
Inst Owner Change-0.21%
Ins Owners1.03%
Ins Owner Change1.34%
Market Cap8.20B
Analysts80
Price Target72.32 (25.86%)
Short Float %2.38%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.81%
Min EPS beat(2)-9.85%
Max EPS beat(2)2.22%
EPS beat(4)3
Avg EPS beat(4)2.39%
Min EPS beat(4)-9.85%
Max EPS beat(4)15.19%
EPS beat(8)7
Avg EPS beat(8)2.6%
EPS beat(12)11
Avg EPS beat(12)27%
EPS beat(16)15
Avg EPS beat(16)49.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)-2.38%
Revenue beat(4)2
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.66%
Revenue beat(12)7
Avg Revenue beat(12)1.83%
Revenue beat(16)10
Avg Revenue beat(16)2.62%
PT rev (1m)0%
PT rev (3m)-2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.08%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 19.78 | ||
| P/S | 1.93 | ||
| P/FCF | 45.76 | ||
| P/OCF | 19.32 | ||
| P/B | 4.58 | ||
| P/tB | 5.24 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)2.32
EY4.04%
EPS(NY)2.91
Fwd EY5.06%
FCF(TTM)1.26
FCFY2.19%
OCF(TTM)2.97
OCFY5.18%
SpS29.82
BVpS12.56
TBVpS10.97
PEG (NY)12.77
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 23.43% | ||
| ROCE | 12.44% | ||
| ROIC | 11.25% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 13.29% | ||
| OM | 12.05% | ||
| PM (TTM) | 9.87% | ||
| GM | 20.18% | ||
| FCFM | 4.21% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.29%
ROIC(5y)6.87%
ROICexc(3y)11.16%
ROICexc(5y)8.87%
ROICexgc(3y)12.47%
ROICexgc(5y)10%
ROCE(3y)9.17%
ROCE(5y)7.59%
ROICexcg growth 3Y71.9%
ROICexcg growth 5Y14.12%
ROICexc growth 3Y73.35%
ROICexc growth 5Y15.64%
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.52 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 161.42% | ||
| Cap/Sales | 5.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.85% | ||
| Profit Quality | 42.67% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.12 |
F-Score7
WACC11.16%
ROIC/WACC1.01
Cap/Depr(3y)111.67%
Cap/Depr(5y)108.35%
Cap/Sales(3y)4.56%
Cap/Sales(5y)4.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3YN/A
EPS 5Y8.35%
EPS Q2Q%9.09%
EPS Next Y1.94%
EPS Next 2Y13.13%
EPS Next 3Y16.22%
EPS Next 5Y18.94%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Sales Q2Q%2.5%
Revenue Next Year3.2%
Revenue Next 2Y4.94%
Revenue Next 3Y5.63%
Revenue Next 5Y5.28%
EBIT growth 1Y9.06%
EBIT growth 3Y75.73%
EBIT growth 5Y6.59%
EBIT Next Year57.04%
EBIT Next 3Y27.04%
EBIT Next 5Y22.52%
FCF growth 1Y1321.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y162.72%
OCF growth 3Y-19.86%
OCF growth 5Y-26.22%