ATI INC (ATI) Stock Fundamental Analysis
USA - NYSE:ATI - US01741R1023 - Common Stock
80.48 USD
+2.04 (+2.6%)
80.48 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 69 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 decent growth rate and is not valued too expensively.
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.
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 has a Return On Assets of 8.33%. This is amongst the best in the industry. ATI outperforms 91.30% of its industry peers.
ATI has a better Return On Equity (23.98%) than 91.30% of its industry peers.
The Return On Invested Capital of ATI (12.45%) is better than 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATI is in line with the industry average of 8.29%.
The 3 year average ROIC (10.04%) for ATI is below the current ROIC(12.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.98% | ||
| ROIC | 12.45% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.78%
ROE(5y)-49.01%
ROIC(3y)10.04%
ROIC(5y)6.94%
1.3 Margins
The Profit Margin of ATI (9.27%) is better than 78.26% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.84%, ATI belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
Looking at the Gross Margin, with a value of 21.35%, ATI is in line with its industry, outperforming 40.58% of the companies in the same industry.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% |
OM growth 3Y49.74%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.19%
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.
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
An Altman-Z score of 3.75 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score of 3.75. This is comparable to the rest of the industry: ATI outperforms 53.62% of its industry peers.
ATI has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as ATI would need 7.77 years to pay back of all of its debts.
The Debt to FCF ratio of ATI (7.77) is better than 62.32% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that ATI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, ATI is not doing good in the industry: 76.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.29
WACC9.68%
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.
Looking at the Current ratio, with a value of 2.52, ATI is in line with its industry, outperforming 53.62% of the companies in the same 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.
With a Quick ratio value of 1.20, ATI perfoms like the industry average, outperforming 40.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
ATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.55%, 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.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.64%.
The Revenue has been growing slightly by 1.14% on average over the past years.
EPS 1Y (TTM)25.55%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.33%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
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 18.44% on average per year.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y23.16%
EPS Next 2Y22.68%
EPS Next 3Y21.01%
EPS Next 5Y18.44%
Revenue Next Year7.88%
Revenue Next 2Y7.6%
Revenue Next 3Y7.57%
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
Based on the Price/Earnings ratio of 28.24, 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 78.26% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. ATI is around the same levels.
ATI is valuated rather expensively with a Price/Forward Earnings ratio of 21.65.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, ATI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATI indicates a rather cheap valuation: ATI is cheaper than 81.16% of the companies listed in the same industry.
68.12% of the companies in the same industry are more expensive than ATI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.59 | ||
| EV/EBITDA | 15.8 |
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.
ATI's earnings are expected to grow with 21.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.84
EPS Next 2Y22.68%
EPS Next 3Y21.01%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.48
+2.04 (+2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.2%
Inst Owner Change-0.87%
Ins Owners0.95%
Ins Owner Change-1.4%
Market Cap11.09B
Analysts81.18
Price Target101.24 (25.8%)
Short Float %2.97%
Short Ratio2.12
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)2.09%
PT rev (3m)19.79%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)0.55%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 21.65 | ||
| P/S | 2.46 | ||
| P/FCF | 45.59 | ||
| P/OCF | 23.05 | ||
| P/B | 6.36 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 15.8 |
EPS(TTM)2.85
EY3.54%
EPS(NY)3.72
Fwd EY4.62%
FCF(TTM)1.77
FCFY2.19%
OCF(TTM)3.49
OCFY4.34%
SpS32.71
BVpS12.65
TBVpS11
PEG (NY)1.22
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.98% | ||
| ROCE | 15.8% | ||
| ROIC | 12.45% | ||
| ROICexc | 13.55% | ||
| ROICexgc | 14.46% | ||
| OM | 13.84% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% | ||
| FCFM | 5.4% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.78%
ROE(5y)-49.01%
ROIC(3y)10.04%
ROIC(5y)6.94%
ROICexc(3y)12.79%
ROICexc(5y)9.02%
ROICexgc(3y)14.1%
ROICexgc(5y)10.01%
ROCE(3y)12.74%
ROCE(5y)8.81%
ROICexcg growth 3Y44.83%
ROICexcg growth 5Y12.71%
ROICexc growth 3Y48.18%
ROICexc growth 5Y14.31%
OM growth 3Y49.74%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.19%
GM growth 3Y20.05%
GM growth 5Y5.88%
F-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 148.75% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.4% | ||
| Profit Quality | 58.21% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.75 |
F-Score8
WACC9.68%
ROIC/WACC1.29
Cap/Depr(3y)128.74%
Cap/Depr(5y)117.5%
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)25.55%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.33%
EPS Next Y23.16%
EPS Next 2Y22.68%
EPS Next 3Y21.01%
EPS Next 5Y18.44%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
Revenue Next Year7.88%
Revenue Next 2Y7.6%
Revenue Next 3Y7.57%
Revenue Next 5Y7.23%
EBIT growth 1Y25.94%
EBIT growth 3Y73.59%
EBIT growth 5Y8.45%
EBIT Next Year47.17%
EBIT Next 3Y23.65%
EBIT Next 5Y18.03%
FCF growth 1Y378.94%
FCF growth 3YN/A
FCF growth 5Y21.89%
OCF growth 1Y109.08%
OCF growth 3Y193.01%
OCF growth 5Y11.97%