Investors seeking growth at a reasonable cost should explore ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT).

Our stock screener has singled out ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) as an attractive growth opportunity. ATAT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Evaluating Growth: ATAT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. ATAT boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 72.73% over the past year.
• The Earnings Per Share has been growing by 138.03% on average over the past years. This is a very strong growth
• The Revenue has grown by 55.34% in the past year. This is a very strong growth!
• Measured over the past years, ATAT shows a very strong growth in Revenue. The Revenue has been growing by 35.84% on average per year.
• ATAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.84% yearly.
• ATAT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.88% yearly.

What does the Valuation looks like for ATAT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. ATAT has earned a 5 for valuation:

• Based on the Price/Earnings ratio, ATAT is valued a bit cheaper than the industry average as 63.97% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, ATAT is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ATAT is valued a bit cheaper than the industry average as 77.21% of the companies are valued more expensively.
• ATAT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ATAT has an outstanding profitability rating, which may justify a higher PE ratio.
• ATAT's earnings are expected to grow with 23.84% in the coming years. This may justify a more expensive valuation.

Understanding ATAT's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. ATAT has earned a 9 out of 10:

• ATAT has an Altman-Z score of 5.74. This indicates that ATAT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.74, ATAT belongs to the top of the industry, outperforming 90.44% of the companies in the same industry.
• The Debt to FCF ratio of ATAT is 0.04, which is an excellent value as it means it would take ATAT, only 0.04 years of fcf income to pay off all of its debts.
• ATAT has a better Debt to FCF ratio (0.04) than 94.12% of its industry peers.
• A Debt/Equity ratio of 0.02 indicates that ATAT is not too dependend on debt financing.
• ATAT's Debt to Equity ratio of 0.02 is amongst the best of the industry. ATAT outperforms 88.24% of its industry peers.
• A Current Ratio of 2.02 indicates that ATAT has no problem at all paying its short term obligations.
• The Current ratio of ATAT (2.02) is better than 85.29% of its industry peers.
• Looking at the Quick ratio, with a value of 1.96, ATAT belongs to the top of the industry, outperforming 86.03% of the companies in the same industry.

Assessing Profitability for ATAT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of ATAT, the assigned 8 is noteworthy for profitability:

• ATAT has a Return On Assets of 16.19%. This is amongst the best in the industry. ATAT outperforms 94.12% of its industry peers.
• Looking at the Return On Equity, with a value of 43.14%, ATAT belongs to the top of the industry, outperforming 90.44% of the companies in the same industry.
• ATAT has a Return On Invested Capital of 23.71%. This is amongst the best in the industry. ATAT outperforms 94.12% of its industry peers.
• The last Return On Invested Capital (23.71%) for ATAT is above the 3 year average (15.05%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 17.60%, ATAT belongs to the best of the industry, outperforming 90.44% of the companies in the same industry.
• In the last couple of years the Profit Margin of ATAT has grown nicely.
• The Operating Margin of ATAT (22.38%) is better than 85.29% of its industry peers.
• In the last couple of years the Operating Margin of ATAT has grown nicely.
• Looking at the Gross Margin, with a value of 85.05%, ATAT belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ATAT

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.