ATI INC (ATI)

US01741R1023 - Common Stock

60.27  -0.33 (-0.54%)

After market: 60.27 0 (0%)

Fundamental Rating

5

Taking everything into account, ATI scores 5 out of 10 in our fundamental rating. ATI was compared to 156 industry peers in the Metals & Mining industry. ATI scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, ATI is valued expensive at the moment.



8

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.
ATI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 8.24%, ATI belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.92%, ATI belongs to the top of the industry, outperforming 96.13% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.71%, ATI belongs to the best of the industry, outperforming 84.52% 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 9.00%.
The 3 year average ROIC (8.29%) for ATI is below the current ROIC(10.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.24%
ROE 29.92%
ROIC 10.71%
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 9.84%, ATI belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Profit Margin of ATI has grown nicely.
ATI has a Operating Margin of 11.37%. This is in the better half of the industry: ATI outperforms 71.61% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
ATI has a Gross Margin (19.23%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ATI has grown nicely.
Industry RankSector Rank
OM 11.37%
PM (TTM) 9.84%
GM 19.23%
OM growth 3Y57.1%
OM growth 5Y5.93%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y26.33%
GM growth 5Y4.91%

3

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 less shares outstanding
Compared to 5 years ago, ATI has more shares outstanding
ATI has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.80 indicates that ATI is not a great score, but indicates only limited risk for bankruptcy at the moment.
ATI has a Altman-Z score (2.80) which is in line with its industry peers.
A Debt/Equity ratio of 1.56 is on the high side and indicates that ATI has dependencies on debt financing.
ATI's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. ATI is outperformed by 90.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.56
Debt/FCF N/A
Altman-Z 2.8
ROIC/WACC1.3
WACC8.24%

2.3 Liquidity

A Current Ratio of 2.80 indicates that ATI has no problem at all paying its short term obligations.
The Current ratio of ATI (2.80) is comparable to the rest of the industry.
ATI has a Quick Ratio of 1.53. 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 1.53, ATI is in line with its industry, outperforming 51.61% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.8
Quick Ratio 1.53

6

3. Growth

3.1 Past

ATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, which is quite good.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.35% yearly.
Looking at the last year, ATI shows a quite strong growth in Revenue. The Revenue has grown by 8.80% in the last year.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 0.62% on average per year.
EPS 1Y (TTM)8.13%
EPS 3YN/A
EPS 5Y8.35%
EPS growth Q2Q-2.04%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Revenue growth Q2Q0.46%

3.2 Future

The Earnings Per Share is expected to grow by 21.89% on average over the next years. This is a very strong growth
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.09% yearly.
EPS Next Y3.09%
EPS Next 2Y14.91%
EPS Next 3Y15.69%
EPS Next 5Y21.89%
Revenue Next Year5.22%
Revenue Next 2Y6.39%
Revenue Next 3Y6.08%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.67 indicates a quite expensive valuation of ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
ATI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 20.11, ATI is valued on the expensive side.
ATI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.15. ATI is around the same levels.
Industry RankSector Rank
PE 26.67
Fwd PE 20.11

4.2 Price Multiples

ATI's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.69% in the coming years.
PEG (NY)8.64
PEG (5Y)3.19
EPS Next 2Y14.91%
EPS Next 3Y15.69%

0

5. Dividend

5.1 Amount

ATI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ATI INC

NYSE:ATI (5/17/2024, 7:04:00 PM)

After market: 60.27 0 (0%)

60.27

-0.33 (-0.54%)

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 Cap7.50B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 26.67
Fwd PE 20.11
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)8.64
PEG (5Y)3.19
Profitability
Industry RankSector Rank
ROA 8.24%
ROE 29.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.37%
PM (TTM) 9.84%
GM 19.23%
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 Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 1.56
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.8
Quick Ratio 1.53
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)
Growth
EPS 1Y (TTM)8.13%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y3.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.8%
Revenue growth 3Y11.86%
Revenue growth 5Y
Revenue growth 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