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. While ATI belongs to the best of the industry regarding profitability, 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.
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
Looking at the Return On Assets, with a value of 7.69%, ATI belongs to the top of the industry, outperforming 84.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.29%, ATI belongs to the top of the industry, outperforming 91.50% of the companies in the same industry.
ATI has a better Return On Invested Capital (11.58%) than 90.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATI is in line with the industry average of 8.62%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(11.58%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 8.93%, ATI is doing good in the industry, outperforming 79.74% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
ATI's Operating Margin of 13.34% is fine compared to the rest of the industry. ATI outperforms 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
ATI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ATI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATI has been increased compared to 5 years ago.
The debt/assets ratio for ATI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.72 indicates that ATI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATI (3.72) 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.
ATI has a Debt to FCF ratio of 10.26. This is in the better half of the industry: ATI outperforms 63.40% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that ATI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, ATI is not doing good in the industry: 84.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.17
WACC9.91%
2.3 Liquidity
ATI has a Current Ratio of 2.53. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
ATI has a Current ratio (2.53) which is in line with its industry peers.
ATI has a Quick Ratio of 1.30. This is a normal value and indicates that ATI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, ATI is in line with its industry, 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
ATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.91%, which is quite good.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.82% in the past year.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 1.14% on average per year.
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
Based on estimates for the next years, ATI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.65% on average per year.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
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
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 29.49 indicates a quite expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (26.35), we can say ATI is valued inline with the index average.
The Price/Forward Earnings ratio is 21.14, which indicates a rather expensive current valuation of ATI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (22.20), we can say ATI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.49 | ||
| Fwd PE | 21.14 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 61.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.08 | ||
| EV/EBITDA | 16.8 |
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 23.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)1.92
EPS Next 2Y23.71%
EPS Next 3Y23.17%
5. Dividend
5.1 Amount
No dividends for ATI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.93
+0.46 (+0.58%)
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 Cap11.28B
Analysts81.25
Price Target76.88 (-3.82%)
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 | 29.49 | ||
| Fwd PE | 21.14 | ||
| P/S | 2.53 | ||
| P/FCF | 61.08 | ||
| P/OCF | 27.42 | ||
| P/B | 6.02 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)2.71
EY3.39%
EPS(NY)3.78
Fwd EY4.73%
FCF(TTM)1.31
FCFY1.64%
OCF(TTM)2.91
OCFY3.65%
SpS31.64
BVpS13.28
TBVpS11.67
PEG (NY)1.38
PEG (5Y)1.92
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 | 3.72 |
F-Score6
WACC9.91%
ROIC/WACC1.17
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%