ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
104.73 USD
+5.31 (+5.34%)
104.5 USD
-0.23 (-0.22%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 72 industry peers in the Aerospace & Defense industry. ATI has an excellent profitability rating, 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.
In multiple years ATI reported negative net income over the last 5 years.
Each year in the past 5 years ATI had a positive operating cash flow.
1.2 Ratios
ATI's Return On Assets of 8.89% is amongst the best of the industry. ATI outperforms 90.28% of its industry peers.
ATI has a better Return On Equity (26.06%) than 95.83% of its industry peers.
ATI has a better Return On Invested Capital (13.13%) than 90.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATI is in line with the industry average of 8.58%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(13.13%), indicating increased profibility in the last year.
| 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 77.78% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
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 of 21.83%. This is comparable to the rest of the industry: ATI outperforms 41.67% 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
ATI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ATI has been increased compared to 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 4.30. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.30, ATI is in line with its industry, outperforming 59.72% of the companies in the same industry.
The Debt to FCF ratio of ATI is 4.13, which is a neutral value as it means it would take ATI, 4.13 years of fcf income to pay off 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.
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: 79.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.35
WACC9.71%
2.3 Liquidity
A Current Ratio of 2.50 indicates that ATI has no problem at all paying its short term obligations.
ATI has a Current ratio of 2.50. This is comparable to the rest of the industry: ATI outperforms 52.78% of its industry peers.
A Quick Ratio of 1.18 indicates that ATI should not have too much problems paying its short term obligations.
The Quick ratio of ATI (1.18) is worse than 62.50% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 7.75% in the past 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
Based on estimates for the next years, ATI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.02% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 33.78, the valuation of ATI can be described as expensive.
69.44% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.59. ATI is valued slightly more expensive when compared to this.
ATI is valuated quite expensively with a Price/Forward Earnings ratio of 26.53.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (23.80), we can say ATI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.78 | ||
| Fwd PE | 26.53 |
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 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ATI is valued cheaply inside the industry as 84.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.84 | ||
| EV/EBITDA | 18.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATI has an outstanding profitability rating, which 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)1.1
PEG (5Y)2.2
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 |
104.73
+5.31 (+5.34%)
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 Cap14.23B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price Target117.54 (12.23%)
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 | 33.78 | ||
| Fwd PE | 26.53 | ||
| P/S | 3.1 | ||
| P/FCF | 30.84 | ||
| P/OCF | 20.43 | ||
| P/B | 8.34 | ||
| P/tB | 9.6 | ||
| EV/EBITDA | 18.31 |
EPS(TTM)3.1
EY2.96%
EPS(NY)3.95
Fwd EY3.77%
FCF(TTM)3.4
FCFY3.24%
OCF(TTM)5.13
OCFY4.89%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.1
PEG (5Y)2.2
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 | 4.3 |
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 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 33.78 and the Price/Book (PB) ratio is 8.34.
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.