Despite its impressive fundamentals, NYSE:ATKR remains undervalued.

Last update: May 6, 2024

Our stock screener has spotted ATKORE INC (NYSE:ATKR) as an undervalued stock with solid fundamentals. NYSE:ATKR shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for NYSE:ATKR

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ATKR was assigned a score of 8 for valuation:

A Price/Earnings ratio of 9.32 indicates a reasonable valuation of ATKR.
ATKR's Price/Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. ATKR is valued rather cheaply when compared to this.
ATKR is valuated reasonably with a Price/Forward Earnings ratio of 9.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, ATKR is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ATKR is valued cheaper than 94.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATKR is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The excellent profitability rating of ATKR may justify a higher PE ratio.

What does the Profitability looks like for NYSE:ATKR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ATKR has achieved a 10:

The Return On Assets of ATKR (21.96%) is better than 98.81% of its industry peers.
Looking at the Return On Equity, with a value of 42.91%, ATKR belongs to the top of the industry, outperforming 98.81% of the companies in the same industry.
ATKR has a Return On Invested Capital of 27.05%. This is amongst the best in the industry. ATKR outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATKR is significantly above the industry average of 10.36%.
The last Return On Invested Capital (27.05%) for ATKR is well below the 3 year average (37.67%), which needs to be investigated, but indicates that ATKR had better years and this may not be a problem.
ATKR has a Profit Margin of 18.51%. This is amongst the best in the industry. ATKR outperforms 96.43% of its industry peers.
In the last couple of years the Profit Margin of ATKR has grown nicely.
ATKR has a better Operating Margin (24.04%) than 97.62% of its industry peers.
In the last couple of years the Operating Margin of ATKR has grown nicely.
ATKR's Gross Margin of 37.20% is amongst the best of the industry. ATKR outperforms 86.90% of its industry peers.
ATKR's Gross Margin has improved in the last couple of years.

Health Analysis for NYSE:ATKR

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ATKR was assigned a score of 9 for health:

An Altman-Z score of 5.74 indicates that ATKR is not in any danger for bankruptcy at the moment.
ATKR has a better Altman-Z score (5.74) than 91.67% of its industry peers.
The Debt to FCF ratio of ATKR is 1.42, which is an excellent value as it means it would take ATKR, only 1.42 years of fcf income to pay off all of its debts.
ATKR's Debt to FCF ratio of 1.42 is amongst the best of the industry. ATKR outperforms 89.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for ATKR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
A Current Ratio of 2.96 indicates that ATKR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.96, ATKR is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
With a decent Quick ratio value of 1.99, ATKR is doing good in the industry, outperforming 76.19% of the companies in the same industry.

Understanding NYSE:ATKR's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ATKR scores a 4 out of 10:

Measured over the past years, ATKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.93% on average per year.
The Revenue has been growing by 13.91% on average over the past years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.