ATKORE INC (ATKR) Stock Fundamental Analysis
NYSE:ATKR - New York Stock Exchange, Inc. - US0476491081 - Common Stock - Currency: USD
Overall ATKR gets a fundamental rating of 7 out of 10. We evaluated ATKR against 97 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making ATKR a very profitable company, without any liquidiy or solvency issues. ATKR has a bad growth rate and is valued cheaply. With these ratings, ATKR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ATKR was profitable.
In the past year ATKR had a positive cash flow from operations.
Each year in the past 5 years ATKR has been profitable.
In the past 5 years ATKR always reported a positive cash flow from operatings.
1.2 Ratios
ATKR's Return On Assets of 17.30% is amongst the best of the industry. ATKR outperforms 96.91% of its industry peers.
The Return On Equity of ATKR (34.00%) is better than 97.94% of its industry peers.
ATKR has a Return On Invested Capital of 22.65%. This is amongst the best in the industry. ATKR outperforms 96.91% of its industry peers.
ATKR had an Average Return On Invested Capital over the past 3 years of 32.71%. This is significantly above the industry average of 9.56%.
The 3 year average ROIC (32.71%) for ATKR is well above the current ROIC(22.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.3% | ||
| ROE | 34% | ||
| ROIC | 22.65% |
ROA(3y)24.39%
ROA(5y)21.76%
ROE(3y)49.5%
ROE(5y)50.91%
ROIC(3y)32.71%
ROIC(5y)30.36%
1.3 Margins
Looking at the Profit Margin, with a value of 13.27%, ATKR belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR's Operating Margin of 17.93% is amongst the best of the industry. ATKR outperforms 94.85% of its industry peers.
In the last couple of years the Operating Margin of ATKR has grown nicely.
ATKR has a Gross Margin of 32.33%. This is in the better half of the industry: ATKR outperforms 74.23% of its industry peers.
In the last couple of years the Gross Margin of ATKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.93% | ||
| PM (TTM) | 13.27% | ||
| GM | 32.33% |
OM growth 3Y-10.58%
OM growth 5Y10.46%
PM growth 3Y-9.54%
PM growth 5Y15.6%
GM growth 3Y-4.33%
GM growth 5Y5.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ATKR is creating value.
ATKR has less shares outstanding than it did 1 year ago.
ATKR has less shares outstanding than it did 5 years ago.
ATKR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that ATKR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.80, ATKR belongs to the best of the industry, outperforming 81.44% of the companies in the same industry.
ATKR has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as ATKR would need 2.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, ATKR belongs to the top of the industry, outperforming 81.44% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that ATKR is somewhat dependend on debt financing.
ATKR's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. ATKR outperforms 47.42% of its industry peers.
Even though the debt/equity ratio score it not favorable for ATKR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.8 |
ROIC/WACC2.88
WACC7.86%
2.3 Liquidity
A Current Ratio of 3.03 indicates that ATKR has no problem at all paying its short term obligations.
ATKR has a better Current ratio (3.03) than 77.32% of its industry peers.
A Quick Ratio of 1.96 indicates that ATKR should not have too much problems paying its short term obligations.
ATKR's Quick ratio of 1.96 is fine compared to the rest of the industry. ATKR outperforms 76.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The earnings per share for ATKR have decreased strongly by -36.89% in the last year.
Measured over the past years, ATKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.86% on average per year.
ATKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.92%.
The Revenue has been growing by 10.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-36.89%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-60.44%
Revenue 1Y (TTM)10.92%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-17.14%
3.2 Future
The Earnings Per Share is expected to decrease by -18.90% on average over the next years. This is quite bad
The Revenue is expected to decrease by -1.49% on average over the next years.
EPS Next Y-55.99%
EPS Next 2Y-31.87%
EPS Next 3Y-18.9%
EPS Next 5YN/A
Revenue Next Year-9.51%
Revenue Next 2Y-3.98%
Revenue Next 3Y-1.49%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.90, the valuation of ATKR can be described as very cheap.
ATKR's Price/Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ATKR is valued rather cheaply.
A Price/Forward Earnings ratio of 8.73 indicates a reasonable valuation of ATKR.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaply inside the industry as 89.69% of the companies are valued more expensively.
ATKR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.9 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 98.97% of the companies listed in the same industry.
ATKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATKR is cheaper than 95.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 3.03 |
4.3 Compensation for Growth
ATKR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ATKR's earnings are expected to decrease with -18.90% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-31.87%
EPS Next 3Y-18.9%
5. Dividend
5.1 Amount
ATKR has a Yearly Dividend Yield of 2.19%.
In the last 3 months the price of ATKR has falen by -31.31%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.64, ATKR pays a better dividend. On top of this ATKR pays more dividend than 93.81% of the companies listed in the same industry.
ATKR's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
ATKR is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
8.89% of the earnings are spent on dividend by ATKR. This is a low number and sustainable payout ratio.
DP8.89%
EPS Next 2Y-31.87%
EPS Next 3Y-18.9%
58.5
+0.76 (+1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.33%
Inst Owner Change0.03%
Ins Owners1%
Ins Owner Change6.13%
Market Cap2.01B
Analysts78.33
Price Target79.22 (35.42%)
Short Float %6.37%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP8.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-3.47%
Max EPS beat(2)2.43%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-6.74%
Max EPS beat(4)4.84%
EPS beat(8)6
Avg EPS beat(8)6.65%
EPS beat(12)10
Avg EPS beat(12)10.66%
EPS beat(16)14
Avg EPS beat(16)15.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)3.11%
Revenue beat(4)1
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-2.61%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)3.02%
PT rev (1m)-12.24%
PT rev (3m)-25.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.02%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-26.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.99%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.9 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.52 | ||
| P/FCF | 6.32 | ||
| P/OCF | 4.32 | ||
| P/B | 1.34 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 3.03 |
EPS(TTM)11.94
EY20.41%
EPS(NY)6.7
Fwd EY11.45%
FCF(TTM)9.26
FCFY15.83%
OCF(TTM)13.53
OCFY23.12%
SpS112.32
BVpS43.82
TBVpS25.27
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.3% | ||
| ROE | 34% | ||
| ROCE | 28.02% | ||
| ROIC | 22.65% | ||
| ROICexc | 25.9% | ||
| ROICexgc | 36.74% | ||
| OM | 17.93% | ||
| PM (TTM) | 13.27% | ||
| GM | 32.33% | ||
| FCFM | 8.24% |
ROA(3y)24.39%
ROA(5y)21.76%
ROE(3y)49.5%
ROE(5y)50.91%
ROIC(3y)32.71%
ROIC(5y)30.36%
ROICexc(3y)39.4%
ROICexc(5y)39.22%
ROICexgc(3y)62.12%
ROICexgc(5y)63.67%
ROCE(3y)40.47%
ROCE(5y)37.55%
ROICexcg growth 3Y-29.69%
ROICexcg growth 5Y0.24%
ROICexc growth 3Y-26.22%
ROICexc growth 5Y5.48%
OM growth 3Y-10.58%
OM growth 5Y10.46%
PM growth 3Y-9.54%
PM growth 5Y15.6%
GM growth 3Y-4.33%
GM growth 5Y5.35%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 121.01% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.16% | ||
| Profit Quality | 62.14% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 3.8 |
F-Score6
WACC7.86%
ROIC/WACC2.88
Cap/Depr(3y)158.09%
Cap/Depr(5y)120.34%
Cap/Sales(3y)4.79%
Cap/Sales(5y)3.7%
Profit Quality(3y)81.53%
Profit Quality(5y)95.44%
High Growth Momentum
Growth
EPS 1Y (TTM)-36.89%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-60.44%
EPS Next Y-55.99%
EPS Next 2Y-31.87%
EPS Next 3Y-18.9%
EPS Next 5YN/A
Revenue 1Y (TTM)10.92%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-17.14%
Revenue Next Year-9.51%
Revenue Next 2Y-3.98%
Revenue Next 3Y-1.49%
Revenue Next 5YN/A
EBIT growth 1Y-17.27%
EBIT growth 3Y-7.87%
EBIT growth 5Y22.4%
EBIT Next Year-43.92%
EBIT Next 3Y-14.36%
EBIT Next 5YN/A
FCF growth 1Y-56.2%
FCF growth 3Y-7.75%
FCF growth 5Y17.96%
OCF growth 1Y-47.63%
OCF growth 3Y-1.41%
OCF growth 5Y21.23%