ATI INC (ATI)
US01741R1023 - Common Stock
Overall ATI gets a fundamental rating of 5 out of 10. We evaluated ATI against 157 industry peers in the Metals & Mining industry. While ATI has a great profitability rating, there are some minor concerns on its financial health. ATI has a correct valuation and a medium growth rate.
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.
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 8.51%, ATI belongs to the best of the industry, outperforming 85.99% of the companies in the same industry.
ATI has a better Return On Equity (32.19%) than 97.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.18%, ATI belongs to the top of the industry, outperforming 87.90% 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 8.91%.
The last Return On Invested Capital (11.18%) for ATI is above the 3 year average (8.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 32.19% | ||
| ROIC | 11.18% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.29%
ROIC(5y)6.87%
1.3 Margins
Looking at the Profit Margin, with a value of 9.74%, ATI is in the better half of the industry, outperforming 78.98% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
The Operating Margin of ATI (11.49%) is better than 69.43% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
With a Gross Margin value of 19.38%, ATI perfoms like the industry average, outperforming 58.60% of the companies in the same industry.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.49% | ||
| PM (TTM) | 9.74% | ||
| GM | 19.38% |
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%
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.
Compared to 1 year ago, ATI has less shares outstanding
ATI has more shares outstanding than it did 5 years ago.
ATI has a worse debt/assets ratio than last year.
2.2 Solvency
ATI has an Altman-Z score of 2.97. This is not the best score and indicates that ATI is in the grey zone with still only limited risk for bankruptcy at the moment.
ATI has a Altman-Z score (2.97) which is comparable to the rest of the industry.
ATI has a debt to FCF ratio of 32.83. This is a negative value and a sign of low solvency as ATI would need 32.83 years to pay back of all of its debts.
The Debt to FCF ratio of ATI (32.83) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that ATI has dependencies on debt financing.
ATI has a worse Debt to Equity ratio (1.70) than 91.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 32.83 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.33
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.81 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.81 is in line compared to the rest of the industry. ATI outperforms 57.96% of its industry peers.
ATI has a Quick Ratio of 1.37. This is a normal value and indicates that ATI is financially healthy and should not expect problems in meeting its short term obligations.
ATI has a Quick ratio (1.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.13% over the past year.
The Earnings Per Share has been growing by 8.35% on average over the past years. This is quite good.
ATI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.43%.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.62% yearly.
EPS 1Y (TTM)8.13%
EPS 3YN/A
EPS 5Y8.35%
EPS Q2Q%-2.04%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Sales Q2Q%0.46%
3.2 Future
ATI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.89% yearly.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y9.23%
EPS Next 2Y19.6%
EPS Next 3Y20.2%
EPS Next 5Y21.89%
Revenue Next Year7.9%
Revenue Next 2Y8.13%
Revenue Next 3Y7.48%
Revenue Next 5Y7.09%
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
The Price/Earnings ratio is 29.00, which means the current valuation is very expensive for ATI.
61.78% of the companies in the same industry are more expensive than ATI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (24.41), we can say ATI is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.18, ATI is valued on the expensive side.
ATI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, ATI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA is on the same level as the industry average.
61.15% of the companies in the same industry are more expensive than ATI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.2 | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ATI may justify a higher PE ratio.
ATI's earnings are expected to grow with 20.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.14
PEG (5Y)3.47
EPS Next 2Y19.6%
EPS Next 3Y20.2%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATI INC
NYSE:ATI (7/26/2024, 7:17:30 PM)
After market: 65.9 +0.36 (+0.55%)65.54
+1.26 (+1.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 20.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.14
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 32.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.49% | ||
| PM (TTM) | 9.74% | ||
| GM | 19.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.13%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y9.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.43%
Revenue growth 3Y11.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y