22.48 USD
-0.01 (-0.04%)
At close: Apr 10, 2025
22.481 USD
0 (0%)
After Hours: 4/10/2025, 8:00:01 PM
Overall ATSG gets a fundamental rating of 3 out of 10. We evaluated ATSG against 23 industry peers in the Air Freight & Logistics industry. There are concerns on the financial health of ATSG while its profitability can be described as average. 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.
- In the past 5 years ATSG always reported a positive cash flow from operatings.
1.2 Ratios
- ATSG's Return On Assets of 0.70% is in line compared to the rest of the industry. ATSG outperforms 52.17% of its industry peers.
- 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.
- The Return On Invested Capital of ATSG (2.61%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ATSG is significantly below the industry average of 12.29%.
| 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
- The Profit Margin of ATSG (1.40%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ATSG has declined.
- With a decent Operating Margin value of 6.94%, ATSG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
- In the last couple of years the Operating Margin of ATSG has declined.
- The Gross Margin of ATSG (52.60%) is better than 86.96% of its industry peers.
- In the last couple of years the Gross Margin of ATSG has declined.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATSG is destroying value.
- Compared to 1 year ago, ATSG has more shares outstanding
- The number of shares outstanding for ATSG has been increased compared to 5 years ago.
- ATSG has a better debt/assets ratio than last year.
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's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. ATSG is outperformed by 60.87% of its industry peers.
- ATSG has a debt to FCF ratio of 7.67. This is a slightly negative value and a sign of low solvency as ATSG would need 7.67 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.67, ATSG is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- A Debt/Equity ratio of 1.04 is on the high side and indicates that ATSG has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.04, ATSG is doing worse than 60.87% of the companies in the same industry.
| 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.
- With a Current ratio value of 0.98, ATSG is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- A Quick Ratio of 0.84 indicates that ATSG may have some problems paying its short term obligations.
- The Quick ratio of ATSG (0.84) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- ATSG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.46%.
- ATSG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
- The Revenue has decreased by -5.25% in the past year.
- Measured over the past years, ATSG shows a small growth in Revenue. The Revenue has been growing by 6.20% on average per year.
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
- ATSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.30% yearly.
- The Revenue is expected to grow by 5.55% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.32. ATSG is around the same levels.
- A Price/Forward Earnings ratio of 21.11 indicates a rather expensive valuation of ATSG.
- Based on the Price/Forward Earnings ratio, ATSG is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
- ATSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATSG indicates a rather cheap valuation: ATSG is cheaper than 91.30% of the companies listed in the same industry.
- ATSG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATSG is cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
- ATSG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ATSG's earnings are expected to grow with 32.30% in the coming years. This may justify a more expensive valuation.
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.