ATI INC (ATI) Stock Fundamental Analysis
USA - NYSE:ATI - US01741R1023 - Common Stock
99.37 USD
+0.81 (+0.82%)
99.37 USD
0 (0%)
ATI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 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.
ATI had a positive operating cash flow in the past year.
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 has a better Return On Assets (8.89%) than 93.06% of its industry peers.
ATI has a Return On Equity of 26.06%. This is amongst the best in the industry. ATI outperforms 95.83% of its industry peers.
ATI's Return On Invested Capital of 13.13% is amongst the best of the industry. ATI outperforms 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 8.50%.
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
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.
The Operating Margin of ATI (14.33%) is better than 81.94% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
The Gross Margin of ATI (21.83%) is comparable to the rest of the industry.
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.
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
ATI has an Altman-Z score of 4.31. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ATI (4.31) is comparable to the rest of the 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.
The Debt to FCF ratio of ATI (4.13) is better than 79.17% of its industry peers.
ATI has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.00, ATI is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.33
WACC9.84%
2.3 Liquidity
ATI has a Current Ratio of 2.50. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
ATI has a Current ratio (2.50) which is in line with its industry peers.
A Quick Ratio of 1.18 indicates that ATI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, ATI is doing worse than 61.11% of the companies in the same industry.
| 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%.
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.
The Revenue is expected to grow by 7.18% on average over the next years.
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.
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
The Price/Earnings ratio is 32.05, which means the current valuation is very expensive for ATI.
ATI's Price/Earnings ratio is a bit cheaper when compared to the industry. ATI is cheaper than 70.83% of the companies in the same industry.
ATI is valuated rather expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
ATI is valuated quite expensively with a Price/Forward Earnings ratio of 25.78.
68.06% of the companies in the same industry are more expensive than ATI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ATI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.05 | ||
| Fwd PE | 25.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATI is valued a bit cheaper than 72.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATI is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.69 | ||
| EV/EBITDA | 18.41 |
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 22.90% in the coming years.
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 |
99.37
+0.81 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change-0.31%
Ins Owners0.74%
Ins Owner Change-1.43%
Market Cap13.70B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts81.33
Price Target105.81 (6.48%)
Short Float %2.53%
Short Ratio2.14
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)3.13%
PT rev (3m)6.69%
EPS NQ rev (1m)5.12%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.05 | ||
| Fwd PE | 25.78 | ||
| P/S | 2.99 | ||
| P/FCF | 29.69 | ||
| P/OCF | 19.67 | ||
| P/B | 8.02 | ||
| P/tB | 9.24 | ||
| EV/EBITDA | 18.41 |
EPS(TTM)3.1
EY3.12%
EPS(NY)3.85
Fwd EY3.88%
FCF(TTM)3.35
FCFY3.37%
OCF(TTM)5.05
OCFY5.08%
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 | 4.31 |
F-Score8
WACC9.84%
ROIC/WACC1.33
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 32.05 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.