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 153 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 decent growth rate and is not valued too expensively.
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.
In multiple years ATI reported negative net income over the last 5 years.
In the past 5 years ATI always reported a positive cash flow from operatings.
1.2 Ratios
ATI has a better Return On Assets (7.03%) than 81.70% of its industry peers.
ATI has a Return On Equity of 19.88%. This is amongst the best in the industry. ATI outperforms 90.85% of its industry peers.
The Return On Invested Capital of ATI (10.94%) is better than 90.20% of its industry peers.
ATI had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 8.53%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(10.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 19.88% | ||
| ROIC | 10.94% |
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 (8.43%) than 79.08% of its industry peers.
In the last couple of years the Profit Margin of ATI has grown nicely.
ATI's Operating Margin of 12.81% is fine compared to the rest of the industry. ATI outperforms 68.63% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
Looking at the Gross Margin, with a value of 20.66%, ATI is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
ATI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATI is still creating some value.
The number of shares outstanding for ATI has been increased compared to 1 year ago.
Compared to 5 years ago, ATI has more shares outstanding
ATI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.93 indicates that ATI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.93, ATI perfoms like the industry average, outperforming 58.17% of the companies in the same industry.
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 63.40% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that ATI is somewhat dependend on debt financing.
ATI has a worse Debt to Equity ratio (0.93) than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.43 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.09
WACC10.03%
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 55.56% of its industry peers.
A Quick Ratio of 1.32 indicates that ATI should not have too much problems paying its short term obligations.
ATI's Quick ratio of 1.32 is in line compared to the rest of the industry. ATI outperforms 45.75% of its industry peers.
| 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.
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.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.51%.
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)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
ATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.65% yearly.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
EPS Next Y17.66%
EPS Next 2Y21.6%
EPS Next 3Y20.38%
EPS Next 5Y18.65%
Revenue Next Year8.02%
Revenue Next 2Y8.21%
Revenue Next 3Y8.03%
Revenue Next 5Y7.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 21.49, 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 71.24% of the companies listed in the same industry.
ATI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.78.
ATI is valuated rather expensively with a Price/Forward Earnings ratio of 18.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 66.01% of the companies listed in the same industry.
ATI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
60.78% of the companies in the same industry are more expensive than ATI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ATI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.17 | ||
| EV/EBITDA | 12.2 |
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.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 20.38% in the coming years.
PEG (NY)1.22
PEG (5Y)1.4
EPS Next 2Y21.6%
EPS Next 3Y20.38%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.09
+0.64 (+1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.83%
Inst Owner Change-48.82%
Ins Owners1.1%
Ins Owner Change1.44%
Market Cap7.49B
Analysts80
Price Target72.11 (35.83%)
Short Float %2.1%
Short Ratio1.25
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)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)-5.03%
PT rev (3m)-0.28%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.27 | ||
| P/S | 1.72 | ||
| P/FCF | 45.17 | ||
| P/OCF | 18.5 | ||
| P/B | 4.05 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)2.47
EY4.65%
EPS(NY)2.91
Fwd EY5.47%
FCF(TTM)1.18
FCFY2.21%
OCF(TTM)2.87
OCFY5.41%
SpS30.92
BVpS13.12
TBVpS11.51
PEG (NY)1.22
PEG (5Y)1.4
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)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%
ROICexcg growth 3Y44.81%
ROICexcg 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-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 | 4.25 | ||
| Cash Conversion | 57% | ||
| Profit Quality | 45.08% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.93 |
F-Score6
WACC10.03%
ROIC/WACC1.09
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 Y17.66%
EPS Next 2Y21.6%
EPS Next 3Y20.38%
EPS Next 5Y18.65%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%10.22%
Revenue Next Year8.02%
Revenue Next 2Y8.21%
Revenue Next 3Y8.03%
Revenue Next 5Y7.17%
EBIT growth 1Y17.77%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year47.29%
EBIT Next 3Y24.03%
EBIT Next 5Y17.83%
FCF growth 1Y244.43%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y371.36%
OCF growth 3Y192.98%
OCF growth 5Y11.97%