ATI INC (ATI) Stock Fundamental Analysis
NYSE:ATI - New York Stock Exchange, Inc. - US01741R1023 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ATI. ATI was compared to 153 industry peers in the Metals & Mining industry. ATI scores excellent on profitability, but there are some minor concerns on its financial health. ATI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ATI had positive earnings in the past year.
In the past year ATI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ATI reported negative net income in multiple years.
In the past 5 years ATI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.69%, ATI belongs to the best of the industry, outperforming 84.97% of the companies in the same industry.
ATI has a better Return On Equity (21.29%) than 91.50% of its industry peers.
The Return On Invested Capital of ATI (11.58%) is better than 90.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATI is in line with the industry average of 8.62%.
The last Return On Invested Capital (11.58%) for ATI is above the 3 year average (10.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | 21.29% | ||
| ROIC | 11.58% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.77%
ROE(5y)-49.01%
ROIC(3y)10.03%
ROIC(5y)6.93%
1.3 Margins
ATI has a Profit Margin of 8.93%. This is in the better half of the industry: ATI outperforms 79.74% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
ATI has a better Operating Margin (13.34%) than 68.63% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.07%, ATI is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.34% | ||
| PM (TTM) | 8.93% | ||
| GM | 21.07% |
OM growth 3Y49.73%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.18%
GM growth 3Y20.05%
GM growth 5Y5.88%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATI is still creating some value.
Compared to 1 year ago, ATI has more shares outstanding
The number of shares outstanding for ATI has been increased compared to 5 years ago.
ATI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.62 indicates that ATI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATI (3.62) is better than 67.32% of its industry peers.
The Debt to FCF ratio of ATI is 10.26, which is on the high side as it means it would take ATI, 10.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ATI (10.26) is better than 63.40% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that ATI is somewhat dependend on debt financing.
ATI's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. ATI is outperformed by 84.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.16
WACC9.98%
2.3 Liquidity
A Current Ratio of 2.53 indicates that ATI has no problem at all paying its short term obligations.
With a Current ratio value of 2.53, ATI perfoms like the industry average, outperforming 56.21% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that ATI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, ATI perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.91% over the past year.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
Looking at the last year, ATI shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
EPS 1Y (TTM)19.91%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%50%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%9.73%
3.2 Future
ATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.65% yearly.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
EPS Next Y21.38%
EPS Next 2Y23.71%
EPS Next 3Y23.17%
EPS Next 5Y18.65%
Revenue Next Year8.55%
Revenue Next 2Y8.31%
Revenue Next 3Y8.37%
Revenue Next 5Y7.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ATI is valuated quite expensively with a Price/Earnings ratio of 29.32.
66.01% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
ATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.02 indicates a rather expensive valuation of ATI.
The rest of the industry has a similar Price/Forward Earnings ratio as ATI.
ATI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.32 | ||
| Fwd PE | 21.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ATI is valued a bit cheaper than 61.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.73 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ATI may justify a higher PE ratio.
ATI's earnings are expected to grow with 23.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)1.91
EPS Next 2Y23.71%
EPS Next 3Y23.17%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.47
+3.83 (+5.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.83%
Inst Owner Change-1.18%
Ins Owners1.1%
Ins Owner Change1.19%
Market Cap11.21B
Analysts81.25
Price Target76.88 (-3.26%)
Short Float %1.74%
Short Ratio0.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.9%
Min EPS beat(2)20.32%
Max EPS beat(2)27.48%
EPS beat(4)3
Avg EPS beat(4)10.04%
Min EPS beat(4)-9.85%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)8.36%
EPS beat(12)11
Avg EPS beat(12)9.36%
EPS beat(16)15
Avg EPS beat(16)47.45%
Revenue beat(2)2
Avg Revenue beat(2)5.18%
Min Revenue beat(2)3.94%
Max Revenue beat(2)6.42%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)1.52%
Revenue beat(16)10
Avg Revenue beat(16)2.31%
PT rev (1m)1.25%
PT rev (3m)2.27%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)3.17%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.32 | ||
| Fwd PE | 21.02 | ||
| P/S | 2.51 | ||
| P/FCF | 60.73 | ||
| P/OCF | 27.26 | ||
| P/B | 5.99 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 16.08 |
EPS(TTM)2.71
EY3.41%
EPS(NY)3.78
Fwd EY4.76%
FCF(TTM)1.31
FCFY1.65%
OCF(TTM)2.91
OCFY3.67%
SpS31.64
BVpS13.28
TBVpS11.67
PEG (NY)1.37
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | 21.29% | ||
| ROCE | 14.71% | ||
| ROIC | 11.58% | ||
| ROICexc | 13.12% | ||
| ROICexgc | 14.02% | ||
| OM | 13.34% | ||
| PM (TTM) | 8.93% | ||
| GM | 21.07% | ||
| FCFM | 4.14% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.77%
ROE(5y)-49.01%
ROIC(3y)10.03%
ROIC(5y)6.93%
ROICexc(3y)12.78%
ROICexc(5y)9.01%
ROICexgc(3y)14.09%
ROICexgc(5y)10%
ROCE(3y)12.74%
ROCE(5y)8.81%
ROICexcg growth 3Y44.81%
ROICexcg growth 5Y12.7%
ROICexc growth 3Y48.17%
ROICexc growth 5Y14.31%
OM growth 3Y49.73%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.18%
GM growth 3Y20.05%
GM growth 5Y5.88%
F-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.26 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 144.98% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.71% | ||
| Profit Quality | 46.3% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.62 |
F-Score6
WACC9.98%
ROIC/WACC1.16
Cap/Depr(3y)128.93%
Cap/Depr(5y)117.62%
Cap/Sales(3y)4.57%
Cap/Sales(5y)4.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.91%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%50%
EPS Next Y21.38%
EPS Next 2Y23.71%
EPS Next 3Y23.17%
EPS Next 5Y18.65%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%9.73%
Revenue Next Year8.55%
Revenue Next 2Y8.31%
Revenue Next 3Y8.37%
Revenue Next 5Y7.17%
EBIT growth 1Y23.97%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.76%
EBIT Next 3Y24.82%
EBIT Next 5Y17.83%
FCF growth 1Y2297.62%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y162.08%
OCF growth 3Y192.98%
OCF growth 5Y11.97%