ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
99.29 USD
+1.66 (+1.7%)
99.29 USD
0 (0%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 71 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
Looking at the Return On Assets, with a value of 8.89%, ATI belongs to the top of the industry, outperforming 91.55% of the companies in the same industry.
ATI's Return On Equity of 26.06% is amongst the best of the industry. ATI outperforms 95.77% of its industry peers.
With an excellent Return On Invested Capital value of 13.13%, ATI belongs to the best of the industry, outperforming 90.14% 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 8.52%.
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 77.46% 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 81.69% 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 43.66% 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
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
The number of shares outstanding for ATI has been increased compared to 5 years ago.
The debt/assets ratio for ATI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.29 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score (4.29) which is in line with its industry peers.
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.
ATI has a better Debt to FCF ratio (4.13) than 78.87% of its industry peers.
A Debt/Equity ratio of 1.00 is on the high side and indicates that ATI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, ATI is doing worse than 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.29 |
ROIC/WACC1.3
WACC10.12%
2.3 Liquidity
A Current Ratio of 2.50 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.50 is in line compared to the rest of the industry. ATI outperforms 53.52% of its industry peers.
A Quick Ratio of 1.18 indicates that ATI should not have too much problems paying its short term obligations.
ATI has a Quick ratio of 1.18. This is comparable to the rest of the industry: ATI outperforms 40.85% 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.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 1.14% on average per year.
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
The Earnings Per Share is expected to grow by 18.02% 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 7.18% on average per year.
EPS Next Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
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
The Price/Earnings ratio is 32.03, which means the current valuation is very expensive for ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than 71.83% of the companies in the same industry.
ATI is valuated rather expensively when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
ATI is valuated quite expensively with a Price/Forward Earnings ratio of 25.76.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than 71.83% of the companies in the same industry.
ATI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than 73.24% of the companies in the same industry.
ATI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATI is cheaper than 81.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.67 | ||
| EV/EBITDA | 18.25 |
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 22.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)2.09
EPS Next 2Y24.92%
EPS Next 3Y22.9%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.29
+1.66 (+1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change-2.75%
Ins Owners0.74%
Ins Owner Change-1.71%
Market Cap13.69B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts81.33
Price Target117.54 (18.38%)
Short Float %2.05%
Short Ratio1.78
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)14.57%
PT rev (3m)18.52%
EPS NQ rev (1m)6.13%
EPS NQ rev (3m)6.61%
EPS NY rev (1m)3.17%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)-2.44%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.76 | ||
| P/S | 2.99 | ||
| P/FCF | 29.67 | ||
| P/OCF | 19.65 | ||
| P/B | 8.02 | ||
| P/tB | 9.24 | ||
| EV/EBITDA | 18.25 |
EPS(TTM)3.1
EY3.12%
EPS(NY)3.85
Fwd EY3.88%
FCF(TTM)3.35
FCFY3.37%
OCF(TTM)5.05
OCFY5.09%
SpS33.25
BVpS12.38
TBVpS10.75
PEG (NY)1.17
PEG (5Y)2.09
Graham Number29.39
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 | 4.29 |
F-Score8
WACC10.12%
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 Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
Revenue Next 5Y7.18%
EBIT growth 1Y28.08%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.75%
EBIT Next 3Y23.19%
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 6 / 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 32.03 and the Price/Book (PB) ratio is 8.02.
What is the earnings growth outlook for ATI INC?
The Earnings per Share (EPS) of ATI INC (ATI) is expected to grow by 27.36% in the next year.