ATKORE INC (ATKR) Stock Fundamental Analysis
NYSE:ATKR - New York Stock Exchange, Inc. - US0476491081 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ATKR. ATKR was compared to 94 industry peers in the Electrical Equipment industry. ATKR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATKR is valued quite cheap, but it does not seem to be growing. These ratings could make ATKR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ATKR had positive earnings in the past year.
In the past year ATKR had a positive cash flow from operations.
ATKR had positive earnings in each of the past 5 years.
ATKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.64%, ATKR belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.46%, ATKR belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.20%, ATKR belongs to the top of the industry, outperforming 94.68% of the companies in the same industry.
ATKR had an Average Return On Invested Capital over the past 3 years of 32.71%. This is significantly above the industry average of 9.89%.
The 3 year average ROIC (32.71%) for ATKR is well above the current ROIC(14.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 13.46% | ||
| ROIC | 14.2% |
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
The Profit Margin of ATKR (6.39%) is better than 81.91% of its industry peers.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR has a better Operating Margin (13.93%) than 86.17% of its industry peers.
In the last couple of years the Operating Margin of ATKR has grown nicely.
ATKR's Gross Margin of 28.65% is fine compared to the rest of the industry. ATKR outperforms 64.89% of its industry peers.
ATKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.93% | ||
| PM (TTM) | 6.39% | ||
| GM | 28.65% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ATKR is creating value.
The number of shares outstanding for ATKR has been reduced compared to 1 year ago.
Compared to 5 years ago, ATKR has less shares outstanding
Compared to 1 year ago, ATKR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.39 indicates that ATKR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.39, ATKR is doing good in the industry, outperforming 68.09% of the companies in the same industry.
The Debt to FCF ratio of ATKR is 2.36, which is a good value as it means it would take ATKR, 2.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, ATKR belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that ATKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, ATKR perfoms like the industry average, outperforming 43.62% of the companies in the same industry.
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 | 0.54 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.42
WACC10%
2.3 Liquidity
ATKR has a Current Ratio of 3.02. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
ATKR's Current ratio of 3.02 is fine compared to the rest of the industry. ATKR outperforms 74.47% of its industry peers.
ATKR has a Quick Ratio of 1.98. This is a normal value and indicates that ATKR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.98, ATKR is doing good in the industry, outperforming 75.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
ATKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.39%.
ATKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.86% yearly.
ATKR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.83%.
Measured over the past years, ATKR shows a quite strong growth in Revenue. The Revenue has been growing by 10.81% on average per year.
EPS 1Y (TTM)-45.39%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-50%
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-11.5%
3.2 Future
ATKR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.45% yearly.
ATKR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.24% yearly.
EPS Next Y-54.4%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
EPS Next 5YN/A
Revenue Next Year-9.33%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.24%
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
A Price/Earnings ratio of 7.13 indicates a rather cheap valuation of ATKR.
Compared to the rest of the industry, the Price/Earnings ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 96.81% of the companies listed in the same industry.
ATKR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
With a Price/Forward Earnings ratio of 10.71, the valuation of ATKR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
ATKR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
98.94% of the companies in the same industry are more expensive than ATKR, based on the Enterprise Value to EBITDA ratio.
ATKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATKR is cheaper than 96.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| EV/EBITDA | 5.28 |
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 -20.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
5. Dividend
5.1 Amount
ATKR has a Yearly Dividend Yield of 1.87%.
Compared to an average industry Dividend Yield of 4.40, ATKR pays a better dividend. On top of this ATKR pays more dividend than 95.74% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, ATKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
ATKR pays out 23.56% of its income as dividend. This is a sustainable payout ratio.
DP23.56%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
70.55
-0.6 (-0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.35%
Inst Owner Change-7.7%
Ins Owners0.99%
Ins Owner Change1.05%
Market Cap2.37B
Analysts76.67
Price Target77.01 (9.16%)
Short Float %4.72%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP23.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.38%
Min EPS beat(2)2.43%
Max EPS beat(2)34.33%
EPS beat(4)2
Avg EPS beat(4)6.64%
Min EPS beat(4)-6.74%
Max EPS beat(4)34.33%
EPS beat(8)6
Avg EPS beat(8)9.44%
EPS beat(12)10
Avg EPS beat(12)10.12%
EPS beat(16)14
Avg EPS beat(16)14.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-2.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)2.21%
PT rev (1m)3.9%
PT rev (3m)-2.79%
EPS NQ rev (1m)-3.91%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)1.31%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 10.71 | ||
| P/S | 0.8 | ||
| P/FCF | 7.31 | ||
| P/OCF | 5.11 | ||
| P/B | 1.68 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 5.28 |
EPS(TTM)9.9
EY14.03%
EPS(NY)6.59
Fwd EY9.33%
FCF(TTM)9.65
FCFY13.68%
OCF(TTM)13.81
OCFY19.57%
SpS88.38
BVpS41.91
TBVpS26.2
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 13.46% | ||
| ROCE | 17.57% | ||
| ROIC | 14.2% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 22.34% | ||
| OM | 13.93% | ||
| PM (TTM) | 6.39% | ||
| GM | 28.65% | ||
| FCFM | 10.92% |
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-Score4
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 115.55% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 170.99% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.39 |
F-Score4
WACC10%
ROIC/WACC1.42
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)-45.39%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-50%
EPS Next Y-54.4%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-11.5%
Revenue Next Year-9.33%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.24%
Revenue Next 5YN/A
EBIT growth 1Y-56.46%
EBIT growth 3Y-7.87%
EBIT growth 5Y22.4%
EBIT Next Year-43.53%
EBIT Next 3Y-15.57%
EBIT Next 5YN/A
FCF growth 1Y-61.61%
FCF growth 3Y-7.75%
FCF growth 5Y17.96%
OCF growth 1Y-54.84%
OCF growth 3Y-1.41%
OCF growth 5Y21.23%