22.48 USD
-0.01 (-0.04%)
22.481 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ATSG. ATSG was compared to 23 industry peers in the Air Freight & Logistics industry. ATSG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ATSG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ATSG was profitable.
- In the past year ATSG had a positive cash flow from operations.
- In the past 5 years ATSG has always been profitable.
- ATSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ATSG has a Return On Assets (0.70%) which is comparable to the rest of the industry.
- With a Return On Equity value of 1.85%, ATSG perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- ATSG's Return On Invested Capital of 2.61% is in line compared to the rest of the industry. ATSG outperforms 47.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ATSG is significantly below the industry average of 12.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 1.85% | ||
| ROIC | 2.61% |
ROA(3y)2.6%
ROA(5y)3.19%
ROE(3y)6.77%
ROE(5y)8.31%
ROIC(3y)4.14%
ROIC(5y)4.44%
1.3 Margins
- ATSG's Profit Margin of 1.40% is in line compared to the rest of the industry. ATSG outperforms 56.52% of its industry peers.
- In the last couple of years the Profit Margin of ATSG has declined.
- ATSG's Operating Margin of 6.94% is fine compared to the rest of the industry. ATSG outperforms 78.26% of its industry peers.
- In the last couple of years the Operating Margin of ATSG has declined.
- ATSG's Gross Margin of 52.60% is amongst the best of the industry. ATSG outperforms 86.96% of its industry peers.
- ATSG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 1.4% | ||
| GM | 52.6% |
OM growth 3Y-16.89%
OM growth 5Y-10.66%
PM growth 3Y-52.85%
PM growth 5Y-19.8%
GM growth 3Y-1.52%
GM growth 5Y-2.17%
2. Health
2.1 Basic Checks
- ATSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ATSG has been increased compared to 1 year ago.
- The number of shares outstanding for ATSG has been increased compared to 5 years ago.
- Compared to 1 year ago, ATSG has an improved debt to assets ratio.
2.2 Solvency
- ATSG has an Altman-Z score of 1.21. This is a bad value and indicates that ATSG is not financially healthy and even has some risk of bankruptcy.
- ATSG has a Altman-Z score of 1.21. This is in the lower half of the industry: ATSG underperforms 60.87% of its industry peers.
- The Debt to FCF ratio of ATSG is 7.67, which is on the high side as it means it would take ATSG, 7.67 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 7.67, ATSG is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- ATSG has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
- ATSG has a worse Debt to Equity ratio (1.04) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.43
WACC6.02%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that ATSG may have some problems paying its short term obligations.
- ATSG's Current ratio of 0.98 is on the low side compared to the rest of the industry. ATSG is outperformed by 69.57% of its industry peers.
- ATSG has a Quick Ratio of 0.98. This is a bad value and indicates that ATSG is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.84, ATSG is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The earnings per share for ATSG have decreased strongly by -38.46% in the last year.
- ATSG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
- ATSG shows a decrease in Revenue. In the last year, the revenue decreased by -5.25%.
- The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)-38.46%
EPS 3Y-19.07%
EPS 5Y-10.24%
EPS Q2Q%122.22%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.2%
Revenue growth 5Y6.2%
Sales Q2Q%-0.05%
3.2 Future
- Based on estimates for the next years, ATSG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.30% on average per year.
- ATSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y21.01%
EPS Next 2Y32.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y4.51%
Revenue Next 3Y7.99%
Revenue Next 5Y5.55%
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 accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.55 indicates a quite expensive valuation of ATSG.
- ATSG's Price/Earnings is on the same level as the industry average.
- ATSG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- ATSG is valuated rather expensively with a Price/Forward Earnings ratio of 21.11.
- ATSG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATSG is cheaper than 65.22% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. ATSG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ATSG is valued cheaper than 91.30% of the companies in the same industry.
- 95.65% of the companies in the same industry are more expensive than ATSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ATSG's earnings are expected to grow with 32.30% in the coming years.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y32.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ATSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AIR TRANSPORT SERVICES GROUP / ATSG FAQ
Can you provide the ChartMill fundamental rating for AIR TRANSPORT SERVICES GROUP?
ChartMill assigns a fundamental rating of 3 / 10 to ATSG.
What is the valuation status of AIR TRANSPORT SERVICES GROUP (ATSG) stock?
ChartMill assigns a valuation rating of 5 / 10 to AIR TRANSPORT SERVICES GROUP (ATSG). This can be considered as Fairly Valued.
How profitable is AIR TRANSPORT SERVICES GROUP (ATSG) stock?
AIR TRANSPORT SERVICES GROUP (ATSG) has a profitability rating of 4 / 10.
What is the valuation of AIR TRANSPORT SERVICES GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AIR TRANSPORT SERVICES GROUP (ATSG) is 25.55 and the Price/Book (PB) ratio is 1.
How financially healthy is AIR TRANSPORT SERVICES GROUP?
The financial health rating of AIR TRANSPORT SERVICES GROUP (ATSG) is 1 / 10.