ATKORE INC (ATKR) Stock Fundamental Analysis
NYSE:ATKR - New York Stock Exchange, Inc. - US0476491081 - Common Stock
Taking everything into account, ATKR scores 8 out of 10 in our fundamental rating. ATKR was compared to 93 industry peers in the Electrical Equipment industry. ATKR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on ATKR. 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.
ATKR had a positive operating cash flow in the past year.
In the past 5 years ATKR has always been profitable.
Each year in the past 5 years ATKR had a positive operating cash flow.
1.2 Ratios
ATKR has a Return On Assets of 19.96%. This is amongst the best in the industry. ATKR outperforms 100.00% of its industry peers.
ATKR's Return On Equity of 39.16% is amongst the best of the industry. ATKR outperforms 98.90% of its industry peers.
The Return On Invested Capital of ATKR (25.77%) is better than 96.70% 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 10.46%.
The 3 year average ROIC (32.71%) for ATKR is well above the current ROIC(25.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.96% | ||
| ROE | 39.16% | ||
| ROIC | 25.77% |
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
ATKR has a better Profit Margin (15.07%) than 93.41% of its industry peers.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR has a better Operating Margin (20.00%) than 97.80% of its industry peers.
ATKR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 34.20%, ATKR belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
In the last couple of years the Gross Margin of ATKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20% | ||
| PM (TTM) | 15.07% | ||
| GM | 34.2% |
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.
ATKR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATKR has an improved debt to assets ratio.
2.2 Solvency
ATKR has an Altman-Z score of 4.28. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
ATKR's Altman-Z score of 4.28 is amongst the best of the industry. ATKR outperforms 81.32% of its industry peers.
The Debt to FCF ratio of ATKR is 1.94, which is an excellent value as it means it would take ATKR, only 1.94 years of fcf income to pay off all of its debts.
ATKR's Debt to FCF ratio of 1.94 is amongst the best of the industry. ATKR outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that ATKR is somewhat dependend on debt financing.
ATKR has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
Although ATKR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 4.28 |
ROIC/WACC2.41
WACC10.67%
2.3 Liquidity
ATKR has a Current Ratio of 2.98. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.98, ATKR is doing good in the industry, outperforming 78.02% of the companies in the same industry.
ATKR has a Quick Ratio of 1.96. This is a normal value and indicates that ATKR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ATKR (1.96) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
ATKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.66%.
The Earnings Per Share has been growing by 31.86% on average over the past years. This is a very strong growth
Looking at the last year, ATKR shows a quite strong growth in Revenue. The Revenue has grown by 13.69% in the last year.
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)-25.66%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-42.28%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-9.38%
3.2 Future
ATKR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.60% yearly.
The Revenue is expected to grow by 0.90% on average over the next years.
EPS Next Y-40.34%
EPS Next 2Y-16.4%
EPS Next 3Y-8.6%
EPS Next 5YN/A
Revenue Next Year-5.39%
Revenue Next 2Y-0.5%
Revenue Next 3Y0.9%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.90, the valuation of ATKR can be described as very cheap.
Based on the Price/Earnings ratio, ATKR is valued cheaply inside the industry as 98.90% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ATKR to the average of the S&P500 Index (27.94), we can say ATKR is valued rather cheaply.
A Price/Forward Earnings ratio of 9.89 indicates a reasonable valuation of ATKR.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.11. ATKR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATKR is valued cheaply inside the industry as 98.90% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATKR is valued cheaply inside the industry as 96.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
The excellent profitability rating of ATKR may justify a higher PE ratio.
ATKR's earnings are expected to decrease with -8.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-16.4%
EPS Next 3Y-8.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, ATKR has a reasonable but not impressive dividend return.
ATKR's Dividend Yield is rather good when compared to the industry average which is at 3.40. ATKR pays more dividend than 91.21% of the companies in the same industry.
ATKR's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
5.71% of the earnings are spent on dividend by ATKR. This is a low number and sustainable payout ratio.
DP5.71%
EPS Next 2Y-16.4%
EPS Next 3Y-8.6%
ATKORE INC
NYSE:ATKR (1/17/2025, 8:04:00 PM)
After market: 85.17 0 (0%)85.17
+1.72 (+2.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.87%
Inst Owner Change-0.09%
Ins Owners0.86%
Ins Owner Change5.03%
Market Cap2.96B
Analysts76.92
Price Target106.66 (25.23%)
Short Float %8.56%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP5.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.11%
Min EPS beat(2)-6.74%
Max EPS beat(2)-3.47%
EPS beat(4)2
Avg EPS beat(4)1.59%
Min EPS beat(4)-6.74%
Max EPS beat(4)11.74%
EPS beat(8)6
Avg EPS beat(8)8.03%
EPS beat(12)10
Avg EPS beat(12)12.63%
EPS beat(16)14
Avg EPS beat(16)18.24%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)3.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-2.04%
Revenue beat(12)6
Avg Revenue beat(12)1.46%
Revenue beat(16)10
Avg Revenue beat(16)3.92%
PT rev (1m)0.71%
PT rev (3m)-14.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.74 | ||
| P/FCF | 7.41 | ||
| P/OCF | 5.39 | ||
| P/B | 1.92 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 3.67 |
EPS(TTM)14.43
EY16.94%
EPS(NY)8.61
Fwd EY10.11%
FCF(TTM)11.5
FCFY13.5%
OCF(TTM)15.81
OCFY18.57%
SpS115.22
BVpS44.35
TBVpS25.5
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.96% | ||
| ROE | 39.16% | ||
| ROCE | 31.88% | ||
| ROIC | 25.77% | ||
| ROICexc | 29.96% | ||
| ROICexgc | 42.99% | ||
| OM | 20% | ||
| PM (TTM) | 15.07% | ||
| GM | 34.2% | ||
| FCFM | 9.98% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 123.83% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 16.99 | ||
| Cash Conversion | 59.6% | ||
| Profit Quality | 66.19% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 4.28 |
F-Score6
WACC10.67%
ROIC/WACC2.41
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)-25.66%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-42.28%
EPS Next Y-40.34%
EPS Next 2Y-16.4%
EPS Next 3Y-8.6%
EPS Next 5YN/A
Revenue 1Y (TTM)13.69%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-9.38%
Revenue Next Year-5.39%
Revenue Next 2Y-0.5%
Revenue Next 3Y0.9%
Revenue Next 5YN/A
EBIT growth 1Y-10.44%
EBIT growth 3Y-7.87%
EBIT growth 5Y22.4%
EBIT Next Year-28.96%
EBIT Next 3Y-7.58%
EBIT Next 5YN/A
FCF growth 1Y-32.19%
FCF growth 3Y-7.75%
FCF growth 5Y17.96%
OCF growth 1Y-32.02%
OCF growth 3Y-1.41%
OCF growth 5Y21.23%