Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


ATLAS ENERGY SOLUTIONS INC

New York Stock Exchange, Inc. / Energy / Energy Equipment & Services

Fundamental Rating

6

AESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Energy Equipment & Services industry. AESI has an excellent profitability rating, but there are some minor concerns on its financial health. AESI is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, AESI could be worth investigating further for growth investing!.



7

1. Profitability

1.1 Basic Checks

In the past year AESI was profitable.
AESI had a positive operating cash flow in the past year.

1.2 Ratios

The Return On Assets of AESI (8.36%) is better than 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 12.15%, AESI is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
AESI has a better Return On Invested Capital (17.92%) than 96.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AESI is significantly above the industry average of 8.42%.
The 3 year average ROIC (17.66%) for AESI is below the current ROIC(17.92%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.36%
ROE 12.15%
ROIC 17.92%
ROA(3y)12.68%
ROA(5y)N/A
ROE(3y)18.61%
ROE(5y)N/A
ROIC(3y)17.66%
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 17.17%, AESI belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
AESI has a better Operating Margin (43.18%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of AESI has grown nicely.
The Gross Margin of AESI (51.11%) is better than 90.77% of its industry peers.
In the last couple of years the Gross Margin of AESI has grown nicely.
Industry RankSector Rank
OM 43.18%
PM (TTM) 17.17%
GM 51.11%
OM growth 3Y1162.25%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y47.59%
GM growth 5YN/A

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AESI is creating value.
The number of shares outstanding for AESI has been increased compared to 1 year ago.
AESI has a better debt/assets ratio than last year.

2.2 Solvency

AESI has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
AESI has a Debt to Equity ratio of 0.20. This is in the better half of the industry: AESI outperforms 63.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC2.02
WACC8.87%

2.3 Liquidity

A Current Ratio of 3.44 indicates that AESI has no problem at all paying its short term obligations.
AESI has a better Current ratio (3.44) than 89.23% of its industry peers.
A Quick Ratio of 3.04 indicates that AESI has no problem at all paying its short term obligations.
AESI's Quick ratio of 3.04 is amongst the best of the industry. AESI outperforms 90.77% of its industry peers.
Industry RankSector Rank
Current Ratio 3.44
Quick Ratio 3.04

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7

3. Growth

3.1 Past

AESI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.77%.
AESI shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.19%.
The Revenue has been growing by 76.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-58.77%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-67.45%
Revenue 1Y (TTM)27.19%
Revenue growth 3Y76.44%
Revenue growth 5YN/A
Revenue growth Q2Q-5.82%

3.2 Future

AESI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.29% yearly.
The Revenue is expected to grow by 33.21% on average over the next years. This is a very strong growth
EPS Next Y85.51%
EPS Next 2Y69.3%
EPS Next 3Y38.29%
EPS Next 5YN/A
Revenue Next Year91.84%
Revenue Next 2Y55.17%
Revenue Next 3Y33.21%
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.99, AESI is valued correctly.
Based on the Price/Earnings ratio, AESI is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
AESI is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.46, the valuation of AESI can be described as very reasonable.
76.92% of the companies in the same industry are more expensive than AESI, based on the Price/Forward Earnings ratio.
AESI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.99
Fwd PE 8.46

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AESI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.75

4.3 Compensation for Growth

AESI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AESI may justify a higher PE ratio.
A more expensive valuation may be justified as AESI's earnings are expected to grow with 38.29% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y69.3%
EPS Next 3Y38.29%

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3

5. Dividend

5.1 Amount

AESI has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.36, AESI pays a better dividend. On top of this AESI pays more dividend than 86.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AESI has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.78%

5.2 History

AESI does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

58.96% of the earnings are spent on dividend by AESI. This is a bit on the high side, but may be sustainable.
DP58.96%
EPS Next 2Y69.3%
EPS Next 3Y38.29%

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