ATI INC (ATI)
US01741R1023 - Common Stock
We assign a fundamental rating of 5 out of 10 to ATI. ATI was compared to 156 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 has a correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 8.28%, ATI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.43%, ATI belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
ATI has a better Return On Invested Capital (11.25%) than 87.18% 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 8.89%.
The last Return On Invested Capital (11.25%) for ATI is above the 3 year average (8.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 23.43% | ||
| ROIC | 11.25% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.29%
ROIC(5y)6.87%
1.3 Margins
With an excellent Profit Margin value of 9.87%, ATI belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
The Operating Margin of ATI (12.05%) is better than 67.31% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
ATI has a Gross Margin (20.18%) which 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 | 12.05% | ||
| PM (TTM) | 9.87% | ||
| GM | 20.18% |
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%
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.
Compared to 1 year ago, ATI has less shares outstanding
The number of shares outstanding for ATI has been increased compared to 5 years ago.
ATI has a worse debt/assets ratio than last year.
2.2 Solvency
ATI has an Altman-Z score of 3.01. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, ATI is in the better half of the industry, outperforming 60.26% of the companies in the same industry.
ATI has a debt to FCF ratio of 10.52. This is a negative value and a sign of low solvency as ATI would need 10.52 years to pay back of all of its debts.
ATI has a better Debt to FCF ratio (10.52) than 60.90% of its industry peers.
ATI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.04, ATI is not doing good in the industry: 89.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.52 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.01
WACC11.19%
2.3 Liquidity
ATI has a Current Ratio of 2.94. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.94, ATI is doing good in the industry, outperforming 62.18% of the companies in the same industry.
ATI has a Quick Ratio of 1.44. 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 1.44, ATI perfoms like the industry average, outperforming 48.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
ATI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.35% yearly.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 0.62% on average per year.
EPS 1Y (TTM)7.41%
EPS 3YN/A
EPS 5Y8.35%
EPS Q2Q%9.09%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Sales Q2Q%2.5%
3.2 Future
The Earnings Per Share is expected to grow by 18.94% 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 5.28% on average per year.
EPS Next Y1.94%
EPS Next 2Y13.13%
EPS Next 3Y16.22%
EPS Next 5Y18.94%
Revenue Next Year3.23%
Revenue Next 2Y4.93%
Revenue Next 3Y5.6%
Revenue Next 5Y5.28%
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
The Price/Earnings ratio is 23.47, which indicates a rather expensive current valuation of ATI.
Compared to the rest of the industry, the Price/Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 63.46% of the companies listed in the same industry.
ATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
ATI is valuated rather expensively with a Price/Forward Earnings ratio of 18.74.
The rest of the industry has a similar Price/Forward Earnings ratio as ATI.
ATI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATI.
Based on the Price/Free Cash Flow ratio, ATI is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.37 | ||
| EV/EBITDA | 13.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATI does not grow enough to justify the current Price/Earnings ratio.
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 16.22% in the coming years.
PEG (NY)12.1
PEG (5Y)2.81
EPS Next 2Y13.13%
EPS Next 3Y16.22%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATI INC
NYSE:ATI (12/20/2024, 7:55:38 PM)
After market: 54.46 0 (0%)54.46
+0.23 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.65%
Inst Owner Change8.17%
Ins Owners13.56%
Ins Owner Change-0.46%
Market Cap7.77B
Analysts80
Price Target72.32 (32.79%)
Short Float %1.82%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-3.81%
Min EPS beat(2)-9.85%
Max EPS beat(2)2.22%
EPS beat(4)3
Avg EPS beat(4)2.39%
Min EPS beat(4)-9.85%
Max EPS beat(4)15.19%
EPS beat(8)7
Avg EPS beat(8)2.6%
EPS beat(12)11
Avg EPS beat(12)27%
EPS beat(16)15
Avg EPS beat(16)49.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)-2.38%
Revenue beat(4)2
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.66%
Revenue beat(12)7
Avg Revenue beat(12)1.83%
Revenue beat(16)10
Avg Revenue beat(16)2.62%
PT rev (1m)-3.02%
PT rev (3m)-2.21%
EPS NQ rev (1m)-5.49%
EPS NQ rev (3m)-18.4%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)-8.41%
Revenue NQ rev (1m)-2.91%
Revenue NQ rev (3m)-9.08%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 18.74 | ||
| P/S | 1.83 | ||
| P/FCF | 43.37 | ||
| P/OCF | 18.31 | ||
| P/B | 4.34 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 13.86 |
EPS(TTM)2.32
EY4.26%
EPS(NY)2.91
Fwd EY5.33%
FCF(TTM)1.26
FCFY2.31%
OCF(TTM)2.97
OCFY5.46%
SpS29.82
BVpS12.56
TBVpS10.97
PEG (NY)12.1
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 23.43% | ||
| ROCE | 12.44% | ||
| ROIC | 11.25% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 13.29% | ||
| OM | 12.05% | ||
| PM (TTM) | 9.87% | ||
| GM | 20.18% | ||
| FCFM | 4.21% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.29%
ROIC(5y)6.87%
ROICexc(3y)11.16%
ROICexc(5y)8.87%
ROICexgc(3y)12.47%
ROICexgc(5y)10%
ROCE(3y)9.17%
ROCE(5y)7.59%
ROICexcg growth 3Y71.9%
ROICexcg growth 5Y14.12%
ROICexc growth 3Y73.35%
ROICexc growth 5Y15.64%
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.52 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 161.42% | ||
| Cap/Sales | 5.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.85% | ||
| Profit Quality | 42.67% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.01 |
F-Score7
WACC11.19%
ROIC/WACC1.01
Cap/Depr(3y)111.67%
Cap/Depr(5y)108.35%
Cap/Sales(3y)4.56%
Cap/Sales(5y)4.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3YN/A
EPS 5Y8.35%
EPS Q2Q%9.09%
EPS Next Y1.94%
EPS Next 2Y13.13%
EPS Next 3Y16.22%
EPS Next 5Y18.94%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Sales Q2Q%2.5%
Revenue Next Year3.23%
Revenue Next 2Y4.93%
Revenue Next 3Y5.6%
Revenue Next 5Y5.28%
EBIT growth 1Y9.06%
EBIT growth 3Y75.73%
EBIT growth 5Y6.59%
EBIT Next Year57.05%
EBIT Next 3Y26.86%
EBIT Next 5Y22.52%
FCF growth 1Y1321.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y162.72%
OCF growth 3Y-19.86%
OCF growth 5Y-26.22%