ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
116.21 USD
+0.45 (+0.39%)
116.2 USD
-0.01 (-0.01%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 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
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.
In the past 5 years ATI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.89%, ATI belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.06%, ATI belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.13%, ATI belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
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 8.60%.
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.
Looking at the Operating Margin, with a value of 14.33%, ATI belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
ATI's Operating Margin has improved in the last couple of years.
ATI has a Gross Margin of 21.83%. This is comparable to the rest of the industry: ATI outperforms 40.85% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATI is still creating some value.
Compared to 1 year ago, ATI has more shares outstanding
The number of shares outstanding for ATI has been increased compared to 5 years ago.
The debt/assets ratio for ATI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.71 indicates that ATI is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.71, ATI perfoms like the industry average, outperforming 57.75% of the companies in the same 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.
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.
ATI has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ATI (1.00) is worse than 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.36
WACC9.67%
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's Current ratio of 2.50 is in line compared to the rest of the industry. ATI outperforms 47.89% 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
The Earnings Per Share has grown by an impressive 33.62% 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 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
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.18% on average over the next years.
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
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
With a Price/Earnings ratio of 37.49, ATI can be considered very expensive at the moment.
67.61% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (26.50), we can say ATI is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.44 indicates a quite expensive valuation of ATI.
69.01% of the companies in the same industry are more expensive than ATI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (23.93), we can say ATI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.49 | ||
| Fwd PE | 29.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 71.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ATI is valued a bit cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.23 | ||
| EV/EBITDA | 21.09 |
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.
ATI's earnings are expected to grow with 23.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)2.44
EPS Next 2Y26.41%
EPS Next 3Y23.85%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
116.21
+0.45 (+0.39%)
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-1.52%
Market Cap15.79B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts82.67
Price Target117.54 (1.14%)
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)0.29%
EPS NQ rev (3m)6.88%
EPS NY rev (1m)2.62%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.49 | ||
| Fwd PE | 29.44 | ||
| P/S | 3.44 | ||
| P/FCF | 34.23 | ||
| P/OCF | 22.67 | ||
| P/B | 9.25 | ||
| P/tB | 10.65 | ||
| EV/EBITDA | 21.09 |
EPS(TTM)3.1
EY2.67%
EPS(NY)3.95
Fwd EY3.4%
FCF(TTM)3.4
FCFY2.92%
OCF(TTM)5.13
OCFY4.41%
SpS33.73
BVpS12.56
TBVpS10.91
PEG (NY)1.22
PEG (5Y)2.44
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 | 4.71 |
F-Score8
WACC9.67%
ROIC/WACC1.36
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 37.49 and the Price/Book (PB) ratio is 9.25.
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.