ATI INC (ATI) Stock Fundamental Analysis
NYSE:ATI - US01741R1023 - Common Stock
73.71 USD
+1.91 (+2.66%)
73.71 USD
0 (0%)
ATI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. ATI has an excellent profitability rating, but there are some minor concerns on its financial health. ATI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ATI had positive earnings in the past year.
ATI had a positive operating cash flow in the past year.
In multiple years ATI reported negative net income over the last 5 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 8.32%, ATI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
ATI's Return On Equity of 23.95% is amongst the best of the industry. ATI outperforms 96.15% of its industry peers.
ATI has a Return On Invested Capital of 12.43%. This is amongst the best in the industry. ATI outperforms 89.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATI is below the industry average of 12.76%.
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 | 23.95% | ||
| 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 (9.26%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of ATI has grown nicely.
With a decent Operating Margin value of 13.83%, ATI is doing good in the industry, outperforming 67.95% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a better Gross Margin (21.35%) than 60.26% of its industry peers.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.83% | ||
| PM (TTM) | 9.26% | ||
| 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.
Compared to 5 years ago, ATI has more shares outstanding
The debt/assets ratio for ATI has been reduced compared to a year ago.
2.2 Solvency
ATI has an Altman-Z score of 3.62. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.62, ATI is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
ATI has a debt to FCF ratio of 7.79. This is a slightly negative value and a sign of low solvency as ATI would need 7.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.79, ATI is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that ATI is somewhat dependend on debt financing.
ATI has a Debt to Equity ratio of 0.98. This is amonst the worse of the industry: ATI underperforms 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.24
WACC10.05%
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 53.21% of its industry peers.
ATI has a Quick Ratio of 1.20. This is a normal value and indicates that ATI is financially healthy and should not expect problems in meeting its short term obligations.
ATI's Quick ratio of 1.20 is in line compared to the rest of the industry. ATI outperforms 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
ATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.55%, which is quite impressive.
Measured over the past years, ATI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.34% on average per year.
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
Based on estimates for the next years, ATI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.44% on average per year.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.23% yearly.
EPS Next Y22.48%
EPS Next 2Y23.5%
EPS Next 3Y23.46%
EPS Next 5Y18.44%
Revenue Next Year8.2%
Revenue Next 2Y7.61%
Revenue Next 3Y7.81%
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
The Price/Earnings ratio is 25.86, which means the current valuation is very expensive for ATI.
ATI's Price/Earnings ratio is a bit cheaper when compared to the industry. ATI is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (26.76), we can say ATI is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.57, ATI is valued on the expensive side.
ATI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (34.91), we can say ATI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 67.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.84 | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 23.46% in the coming years.
PEG (NY)1.15
PEG (5Y)1.69
EPS Next 2Y23.5%
EPS Next 3Y23.46%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.71
+1.91 (+2.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.2%
Inst Owner Change-0.85%
Ins Owners0.95%
Ins Owner Change-1.31%
Market Cap10.40B
Analysts80
Price Target99.17 (34.54%)
Short Float %2.36%
Short Ratio1.61
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)17.34%
PT rev (3m)28.99%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 19.57 | ||
| P/S | 2.31 | ||
| P/FCF | 42.84 | ||
| P/OCF | 21.61 | ||
| P/B | 5.96 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)2.85
EY3.87%
EPS(NY)3.77
Fwd EY5.11%
FCF(TTM)1.72
FCFY2.33%
OCF(TTM)3.41
OCFY4.63%
SpS31.96
BVpS12.36
TBVpS10.75
PEG (NY)1.15
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 23.95% | ||
| ROCE | 15.79% | ||
| ROIC | 12.43% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 14.43% | ||
| OM | 13.83% | ||
| PM (TTM) | 9.26% | ||
| 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 | 149.06% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.41% | ||
| Profit Quality | 58.13% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.62 |
F-Score8
WACC10.05%
ROIC/WACC1.24
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 Y22.48%
EPS Next 2Y23.5%
EPS Next 3Y23.46%
EPS Next 5Y18.44%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
Revenue Next Year8.2%
Revenue Next 2Y7.61%
Revenue Next 3Y7.81%
Revenue Next 5Y7.23%
EBIT growth 1Y25.98%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year47.17%
EBIT Next 3Y23.65%
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%