ATI INC (ATI) Stock Fundamental Analysis
USA - NYSE:ATI - US01741R1023 - Common Stock
82.98 USD
+2.94 (+3.67%)
82.98 USD
0 (0%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 69 industry peers in the Aerospace & Defense industry. ATI has an excellent profitability rating, 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
In the past year ATI was profitable.
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.
Each year in the past 5 years ATI had a positive operating cash flow.
1.2 Ratios
ATI has a Return On Assets of 8.32%. This is amongst the best in the industry. ATI outperforms 91.30% of its industry peers.
ATI has a Return On Equity of 23.96%. This is amongst the best in the industry. ATI outperforms 91.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.43%, ATI belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATI is in line with the industry average of 8.28%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(12.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 23.96% | ||
| ROIC | 12.43% |
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
The Profit Margin of ATI (9.27%) is better than 78.26% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
The Operating Margin of ATI (13.83%) is better than 82.61% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a Gross Margin (21.35%) which is comparable to the rest of the industry.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.83% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATI is creating some value.
ATI has more shares outstanding than it did 1 year ago.
ATI has more shares outstanding than it did 5 years ago.
ATI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.79 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score (3.79) which is in line with its industry peers.
The Debt to FCF ratio of ATI is 7.79, which is on the high side as it means it would take ATI, 7.79 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.79, ATI is doing good in the industry, outperforming 63.77% of the companies in the same industry.
ATI has a Debt/Equity ratio of 0.98. This is a neutral value indicating ATI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, ATI is doing worse than 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.29
WACC9.65%
2.3 Liquidity
A Current Ratio of 2.52 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.52 is in line compared to the rest of the industry. ATI outperforms 56.52% of its industry peers.
A Quick Ratio of 1.20 indicates that ATI should not have too much problems paying its short term obligations.
The Quick ratio of ATI (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.55% over the past year.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.64%.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.14% yearly.
EPS 1Y (TTM)25.55%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.33%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
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 18.44% yearly.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y23.48%
EPS Next 2Y22.88%
EPS Next 3Y21.73%
EPS Next 5Y18.44%
Revenue Next Year7.95%
Revenue Next 2Y7.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.23%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.12 indicates a quite expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than 75.36% of the companies in the same industry.
ATI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.02.
A Price/Forward Earnings ratio of 22.25 indicates a rather expensive valuation of ATI.
76.81% of the companies in the same industry are more expensive than ATI, based on the Price/Forward Earnings ratio.
ATI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 22.25 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATI is cheaper than 79.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.12 | ||
| EV/EBITDA | 16.09 |
4.3 Compensation for Growth
ATI's 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 21.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)1.9
EPS Next 2Y22.88%
EPS Next 3Y21.73%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.98
+2.94 (+3.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change0.04%
Ins Owners0.74%
Ins Owner Change-1.51%
Market Cap11.44B
Analysts81.33
Price Target102.59 (23.63%)
Short Float %3.28%
Short Ratio2.22
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)11.37%
Min EPS beat(2)2.42%
Max EPS beat(2)20.32%
EPS beat(4)3
Avg EPS beat(4)10.09%
Min EPS beat(4)-9.85%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)7.89%
EPS beat(12)11
Avg EPS beat(12)5.93%
EPS beat(16)15
Avg EPS beat(16)45.11%
Revenue beat(2)1
Avg Revenue beat(2)0.96%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)3.94%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)10
Avg Revenue beat(16)2.36%
PT rev (1m)3.45%
PT rev (3m)21.39%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 22.25 | ||
| P/S | 2.54 | ||
| P/FCF | 47.12 | ||
| P/OCF | 23.77 | ||
| P/B | 6.56 | ||
| P/tB | 7.54 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)2.85
EY3.43%
EPS(NY)3.73
Fwd EY4.49%
FCF(TTM)1.76
FCFY2.12%
OCF(TTM)3.49
OCFY4.21%
SpS32.71
BVpS12.65
TBVpS11
PEG (NY)1.24
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 23.96% | ||
| ROCE | 15.79% | ||
| ROIC | 12.43% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 14.43% | ||
| OM | 13.83% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% | ||
| FCFM | 5.38% |
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-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.79 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 149.16% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.43% | ||
| Profit Quality | 58.09% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.79 |
F-Score8
WACC9.65%
ROIC/WACC1.29
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)25.55%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%23.33%
EPS Next Y23.48%
EPS Next 2Y22.88%
EPS Next 3Y21.73%
EPS Next 5Y18.44%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
Revenue Next Year7.95%
Revenue Next 2Y7.72%
Revenue Next 3Y7.7%
Revenue Next 5Y7.23%
EBIT growth 1Y25.84%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.75%
EBIT Next 3Y23.19%
EBIT Next 5Y18.03%
FCF growth 1Y377.76%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y109.04%
OCF growth 3Y192.98%
OCF growth 5Y11.97%