ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
113.28 USD
+3.52 (+3.21%)
113.28 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 71 industry peers in the Aerospace & Defense industry. While ATI has a great profitability rating, 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.
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.
In the past 5 years ATI always reported a positive cash flow from operatings.
1.2 Ratios
ATI has a Return On Assets of 8.89%. This is amongst the best in the industry. ATI outperforms 90.14% of its industry peers.
ATI's Return On Equity of 26.06% is amongst the best of the industry. ATI outperforms 95.77% of its industry peers.
ATI has a better Return On Invested Capital (13.13%) than 90.14% 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 8.60%.
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
With a decent Profit Margin value of 9.71%, ATI is doing good in the industry, outperforming 77.46% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
ATI has a better Operating Margin (14.33%) than 81.69% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a Gross Margin (21.83%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ATI has grown nicely.
| 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.
The number of shares outstanding for ATI has been increased compared to 1 year ago.
ATI has more shares outstanding than it did 5 years ago.
ATI has a better debt/assets ratio than last year.
2.2 Solvency
ATI has an Altman-Z score of 4.55. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
ATI's Altman-Z score of 4.55 is fine compared to the rest of the industry. ATI outperforms 60.56% of its industry peers.
ATI has a debt to FCF ratio of 4.13. This is a neutral value as ATI would need 4.13 years to pay back of all of its debts.
ATI's Debt to FCF ratio of 4.13 is fine compared to the rest of the industry. ATI outperforms 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.
With a Debt to Equity ratio value of 1.00, ATI is not doing good in the industry: 80.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.31
WACC10%
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 49.30% 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's Quick ratio of 1.18 is on the low side compared to the rest of the industry. ATI is outperformed by 64.79% 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.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
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
ATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.02% yearly.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.18% yearly.
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
A Price/Earnings ratio of 36.54 indicates a quite expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than 67.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, ATI is valued a bit more expensive.
ATI is valuated quite expensively with a Price/Forward Earnings ratio of 28.70.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than 69.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. ATI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.54 | ||
| Fwd PE | 28.7 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATI is cheaper than 71.83% of the companies in the same industry.
ATI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ATI is cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.36 | ||
| EV/EBITDA | 20.03 |
4.3 Compensation for Growth
ATI's 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 23.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)2.38
EPS Next 2Y26.41%
EPS Next 3Y23.85%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
113.28
+3.52 (+3.21%)
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-1.26%
Market Cap15.39B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price Target117.54 (3.76%)
Short Float %2.26%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)16.1%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)6.57%
EPS NY rev (1m)2.62%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.54 | ||
| Fwd PE | 28.7 | ||
| P/S | 3.36 | ||
| P/FCF | 33.36 | ||
| P/OCF | 22.1 | ||
| P/B | 9.02 | ||
| P/tB | 10.39 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)3.1
EY2.74%
EPS(NY)3.95
Fwd EY3.48%
FCF(TTM)3.4
FCFY3%
OCF(TTM)5.13
OCFY4.52%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.19
PEG (5Y)2.38
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 | 4.55 |
F-Score8
WACC10%
ROIC/WACC1.31
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 36.54 and the Price/Book (PB) ratio is 9.02.
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.