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 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. ATKR is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ATKR very considerable 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.
In the past 5 years ATKR always reported a positive cash flow from operatings.
1.2 Ratios
ATKR has a better Return On Assets (17.30%) than 97.83% of its industry peers.
With an excellent Return On Equity value of 34.00%, ATKR belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.65%, ATKR belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATKR is significantly above the industry average of 10.23%.
The last Return On Invested Capital (22.65%) for ATKR is well below the 3 year average (32.71%), which needs to be investigated, but indicates that ATKR had better years and this may not be a problem.
| 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
ATKR's Profit Margin of 13.27% is amongst the best of the industry. ATKR outperforms 91.30% of its industry peers.
ATKR's Profit Margin has improved in the last couple of years.
ATKR has a Operating Margin of 17.93%. This is amongst the best in the industry. ATKR outperforms 94.57% of its industry peers.
ATKR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 32.33%, ATKR is doing good in the industry, outperforming 78.26% 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 | 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.
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
ATKR has an Altman-Z score of 3.92. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.92, ATKR is in the better half of the industry, outperforming 78.26% 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.
ATKR has a Debt to FCF ratio of 2.40. This is amongst the best in the industry. ATKR outperforms 81.52% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that ATKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, ATKR perfoms like the industry average, outperforming 43.48% of the companies in the same 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 | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.92 |
ROIC/WACC2.79
WACC8.12%
2.3 Liquidity
ATKR has a Current Ratio of 3.03. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.03, ATKR is doing good in the industry, outperforming 77.17% of the companies in the same industry.
A Quick Ratio of 1.96 indicates that ATKR should not have too much problems paying its short term obligations.
ATKR has a Quick ratio of 1.96. This is in the better half of the industry: ATKR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| 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 -36.89%.
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.
The Revenue has grown by 10.92% in the past year. This is quite good.
ATKR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.81% yearly.
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 grow by 0.35% on average over the next years.
EPS Next Y-56.16%
EPS Next 2Y-31.96%
EPS Next 3Y-18.9%
EPS Next 5YN/A
Revenue Next Year-5.36%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.35%
Revenue Next 5YN/A
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 decreasing.
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 5.51, the valuation of ATKR can be described as very cheap.
Based on the Price/Earnings ratio, ATKR is valued cheaper than 98.91% of the companies in the same industry.
ATKR is valuated cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.85, which indicates a very decent valuation of ATKR.
91.30% of the companies in the same industry are more expensive than ATKR, based on the Price/Forward Earnings ratio.
ATKR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.51 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATKR is valued cheaply inside the industry as 98.91% of the companies are valued more expensively.
ATKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATKR is cheaper than 96.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 3.4 |
4.3 Compensation for Growth
The excellent profitability rating of ATKR 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)0.17
EPS Next 2Y-31.96%
EPS Next 3Y-18.9%
5. Dividend
5.1 Amount
ATKR has a Yearly Dividend Yield of 1.83%.
In the last 3 months the price of ATKR has falen by -25.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ATKR's Dividend Yield is rather good when compared to the industry average which is at 3.59. ATKR pays more dividend than 95.65% of the companies in the same industry.
ATKR's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 8.89% of its income as dividend. This is a sustainable payout ratio.
DP8.89%
EPS Next 2Y-31.96%
EPS Next 3Y-18.9%
65.78
-1.49 (-2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.87%
Inst Owner Change0.81%
Ins Owners0.86%
Ins Owner Change7.07%
Market Cap2.26B
Analysts76.92
Price Target105.06 (59.71%)
Short Float %6.91%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)-1.5%
PT rev (3m)-13.57%
EPS NQ rev (1m)-42.94%
EPS NQ rev (3m)-65.7%
EPS NY rev (1m)-26.52%
EPS NY rev (3m)-47.09%
Revenue NQ rev (1m)-7.14%
Revenue NQ rev (3m)-18.99%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.51 | ||
| Fwd PE | 9.85 | ||
| P/S | 0.59 | ||
| P/FCF | 7.11 | ||
| P/OCF | 4.86 | ||
| P/B | 1.5 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 3.4 |
EPS(TTM)11.94
EY18.15%
EPS(NY)6.68
Fwd EY10.16%
FCF(TTM)9.26
FCFY14.07%
OCF(TTM)13.53
OCFY20.56%
SpS112.32
BVpS43.82
TBVpS25.27
PEG (NY)N/A
PEG (5Y)0.17
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 | 3.92 |
F-Score6
WACC8.12%
ROIC/WACC2.79
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-56.16%
EPS Next 2Y-31.96%
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-5.36%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.35%
Revenue Next 5YN/A
EBIT growth 1Y-17.27%
EBIT growth 3Y-7.87%
EBIT growth 5Y22.4%
EBIT Next Year-29.13%
EBIT Next 3Y-7.58%
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%