ATI INC (ATI) Stock Fundamental Analysis
NYSE:ATI - New York Stock Exchange, Inc. - US01741R1023 - Common Stock - Currency: USD
ATI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. While ATI belongs to the best of the industry regarding profitability, 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
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.
Each year in the past 5 years ATI had a positive operating cash flow.
1.2 Ratios
ATI's Return On Assets of 7.03% is amongst the best of the industry. ATI outperforms 81.12% of its industry peers.
ATI has a better Return On Equity (19.88%) than 92.31% of its industry peers.
ATI's Return On Invested Capital of 10.94% is amongst the best of the industry. ATI outperforms 86.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 19.88% | ||
| ROIC | 10.94% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ATI (8.43%) is better than 79.02% of its industry peers.
In the last couple of years the Profit Margin of ATI has grown nicely.
With a decent Operating Margin value of 12.81%, ATI is doing good in the industry, outperforming 69.93% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
The Gross Margin of ATI (20.66%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ATI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 8.43% | ||
| GM | 20.66% |
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.
There is no outstanding debt for ATI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ATI has a debt to FCF ratio of 11.43. This is a negative value and a sign of low solvency as ATI would need 11.43 years to pay back of all of its debts.
The Debt to FCF ratio of ATI (11.43) is better than 62.24% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that ATI is somewhat dependend on debt financing.
ATI has a Debt to Equity ratio of 0.93. This is amonst the worse of the industry: ATI underperforms 89.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.43 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC10.42%
2.3 Liquidity
A Current Ratio of 2.44 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.44 is in line compared to the rest of the industry. ATI outperforms 55.94% of its industry peers.
A Quick Ratio of 1.32 indicates that ATI should not have too much problems paying its short term obligations.
The Quick ratio of ATI (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.81% over the past year.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.51% in the past year.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
EPS 1Y (TTM)8.81%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.44%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%10.22%
3.2 Future
The Earnings Per Share is expected to grow by 21.62% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.20% on average over the next years.
EPS Next Y20.09%
EPS Next 2Y20.13%
EPS Next 3Y21.12%
EPS Next 5Y21.62%
Revenue Next Year6.47%
Revenue Next 2Y6.44%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
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.
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 23.49 indicates a rather expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than 67.83% of the companies in the same industry.
ATI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.56, ATI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ATI.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (22.68), we can say ATI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA ratio is in line with the industry average.
65.03% 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 | 49.92 | ||
| EV/EBITDA | 13.88 |
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 decent 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 21.12% in the coming years.
PEG (NY)1.17
PEG (5Y)1.53
EPS Next 2Y20.13%
EPS Next 3Y21.12%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.03
-2.88 (-4.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.83%
Inst Owner Change-4.01%
Ins Owners1.1%
Ins Owner Change1.29%
Market Cap8.28B
Analysts80
Price Target75.17 (29.54%)
Short Float %2.18%
Short Ratio2.01
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)8.81%
Min EPS beat(2)-9.85%
Max EPS beat(2)27.48%
EPS beat(4)3
Avg EPS beat(4)8.76%
Min EPS beat(4)-9.85%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)5.88%
EPS beat(12)11
Avg EPS beat(12)16.47%
EPS beat(16)15
Avg EPS beat(16)50.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)6.42%
Revenue beat(4)2
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)7
Avg Revenue beat(12)2.03%
Revenue beat(16)10
Avg Revenue beat(16)2.52%
PT rev (1m)-0.42%
PT rev (3m)-3.43%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)2.09%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 19.56 | ||
| P/S | 1.9 | ||
| P/FCF | 49.92 | ||
| P/OCF | 20.44 | ||
| P/B | 4.47 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 13.88 |
EPS(TTM)2.47
EY4.26%
EPS(NY)2.97
Fwd EY5.11%
FCF(TTM)1.16
FCFY2%
OCF(TTM)2.84
OCFY4.89%
SpS30.58
BVpS12.97
TBVpS11.38
PEG (NY)1.17
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 19.88% | ||
| ROCE | 13.89% | ||
| ROIC | 10.94% | ||
| ROICexc | 13.33% | ||
| ROICexgc | 14.31% | ||
| OM | 12.81% | ||
| PM (TTM) | 8.43% | ||
| GM | 20.66% | ||
| FCFM | 3.8% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.43 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 157.82% | ||
| Cap/Sales | 5.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57% | ||
| Profit Quality | 45.08% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | N/A |
F-Score6
WACC10.42%
ROIC/WACC1.05
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)8.81%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.44%
EPS Next Y20.09%
EPS Next 2Y20.13%
EPS Next 3Y21.12%
EPS Next 5Y21.62%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%10.22%
Revenue Next Year6.47%
Revenue Next 2Y6.44%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y17.77%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year43.97%
EBIT Next 3Y21.8%
EBIT Next 5YN/A
FCF growth 1Y244.43%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y371.36%
OCF growth 3Y192.98%
OCF growth 5Y11.97%