ATI INC (ATI) Stock Fundamental Analysis
USA - NYSE:ATI - US01741R1023 - Common Stock
78.44 USD
-1.03 (-1.3%)
78.44 USD
0 (0%)
ATI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. ATI scores excellent on profitability, but 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.
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 8.33%, ATI belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
ATI's Return On Equity of 23.98% is amongst the best of the industry. ATI outperforms 91.30% of its industry peers.
ATI has a better Return On Invested Capital (12.45%) than 91.30% 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 8.29%.
The last Return On Invested Capital (12.45%) for ATI is above the 3 year average (10.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.98% | ||
| ROIC | 12.45% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.78%
ROE(5y)-49.01%
ROIC(3y)10.04%
ROIC(5y)6.94%
1.3 Margins
Looking at the Profit Margin, with a value of 9.27%, ATI is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
ATI's Profit Margin has improved in the last couple of years.
ATI's Operating Margin of 13.84% is amongst the best of the industry. ATI outperforms 82.61% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
ATI has a Gross Margin of 21.35%. This is comparable to the rest of the industry: ATI outperforms 40.58% of its industry peers.
ATI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% |
OM growth 3Y49.74%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.19%
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.
Compared to 1 year ago, ATI has more shares outstanding
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
ATI has an Altman-Z score of 3.78. This indicates that ATI is financially healthy and has little risk of bankruptcy at the moment.
ATI's Altman-Z score of 3.78 is in line compared to the rest of the industry. ATI outperforms 53.62% of its industry peers.
The Debt to FCF ratio of ATI is 7.77, which is on the high side as it means it would take ATI, 7.77 years of fcf income to pay off all of its debts.
ATI has a better Debt to FCF ratio (7.77) than 62.32% of its industry peers.
ATI has a Debt/Equity ratio of 0.98. This is a neutral value indicating ATI is somewhat dependend on debt financing.
ATI's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. ATI is outperformed by 76.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.29
WACC9.66%
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 53.62% of its industry peers.
A Quick Ratio of 1.20 indicates that ATI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, ATI is in line with its industry, outperforming 40.58% of the companies in the same 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.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
Looking at the last year, ATI shows a small growth in Revenue. The Revenue has grown by 6.64% in the last year.
The Revenue has been growing slightly by 1.14% on average over the past years.
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
The Earnings Per Share is expected to grow by 18.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y23.16%
EPS Next 2Y22.68%
EPS Next 3Y21.01%
EPS Next 5Y18.44%
Revenue Next Year7.88%
Revenue Next 2Y7.6%
Revenue Next 3Y7.57%
Revenue Next 5Y7.23%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.52, which means the current valuation is very expensive for ATI.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than the industry average as 76.81% of the companies are valued more expensively.
ATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.10, ATI is valued on the expensive side.
75.36% of the companies in the same industry are more expensive than ATI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ATI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
81.16% of the companies in the same industry are more expensive than ATI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ATI is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.44 | ||
| EV/EBITDA | 15.98 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 21.01% in the coming years.
PEG (NY)1.19
PEG (5Y)1.79
EPS Next 2Y22.68%
EPS Next 3Y21.01%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.44
-1.03 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.2%
Inst Owner Change-0.87%
Ins Owners0.95%
Ins Owner Change-1.4%
Market Cap10.81B
Analysts81.18
Price Target101.24 (29.07%)
Short Float %2.97%
Short Ratio2.12
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)2.09%
PT rev (3m)19.79%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)0.55%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 21.1 | ||
| P/S | 2.4 | ||
| P/FCF | 44.44 | ||
| P/OCF | 22.46 | ||
| P/B | 6.2 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 15.98 |
EPS(TTM)2.85
EY3.63%
EPS(NY)3.72
Fwd EY4.74%
FCF(TTM)1.77
FCFY2.25%
OCF(TTM)3.49
OCFY4.45%
SpS32.71
BVpS12.65
TBVpS11
PEG (NY)1.19
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.98% | ||
| ROCE | 15.8% | ||
| ROIC | 12.45% | ||
| ROICexc | 13.55% | ||
| ROICexgc | 14.46% | ||
| OM | 13.84% | ||
| PM (TTM) | 9.27% | ||
| GM | 21.35% | ||
| FCFM | 5.4% |
ROA(3y)6.07%
ROA(5y)-4.33%
ROE(3y)20.78%
ROE(5y)-49.01%
ROIC(3y)10.04%
ROIC(5y)6.94%
ROICexc(3y)12.79%
ROICexc(5y)9.02%
ROICexgc(3y)14.1%
ROICexgc(5y)10.01%
ROCE(3y)12.74%
ROCE(5y)8.81%
ROICexcg growth 3Y44.83%
ROICexcg growth 5Y12.71%
ROICexc growth 3Y48.18%
ROICexc growth 5Y14.31%
OM growth 3Y49.74%
OM growth 5Y7.23%
PM growth 3YN/A
PM growth 5Y6.19%
GM growth 3Y20.05%
GM growth 5Y5.88%
F-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 148.75% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.4% | ||
| Profit Quality | 58.21% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.78 |
F-Score8
WACC9.66%
ROIC/WACC1.29
Cap/Depr(3y)128.74%
Cap/Depr(5y)117.5%
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 Y23.16%
EPS Next 2Y22.68%
EPS Next 3Y21.01%
EPS Next 5Y18.44%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%4.12%
Revenue Next Year7.88%
Revenue Next 2Y7.6%
Revenue Next 3Y7.57%
Revenue Next 5Y7.23%
EBIT growth 1Y25.94%
EBIT growth 3Y73.59%
EBIT growth 5Y8.45%
EBIT Next Year47.17%
EBIT Next 3Y23.65%
EBIT Next 5Y18.03%
FCF growth 1Y378.94%
FCF growth 3YN/A
FCF growth 5Y21.89%
OCF growth 1Y109.08%
OCF growth 3Y193.01%
OCF growth 5Y11.97%