ATI INC (ATI)
US01741R1023 - Common Stock
ATI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. ATI scores excellent on profitability, but there are concerns on its financial health. ATI is quite expensive at the moment. It does show 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.
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 7.37%, ATI belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
With an excellent Return On Equity value of 26.77%, ATI belongs to the best of the industry, outperforming 94.84% 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 81.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATI is in line with the industry average of 9.16%.
The 3 year average ROIC (8.11%) for ATI is below the current ROIC(10.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 26.77% | ||
| ROIC | 10.71% |
ROA(3y)3.43%
ROA(5y)-4.82%
ROE(3y)12.29%
ROE(5y)-50.52%
ROIC(3y)8.11%
ROIC(5y)6.76%
1.3 Margins
The Profit Margin of ATI (8.81%) is better than 76.13% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
ATI's Operating Margin of 11.37% is fine compared to the rest of the industry. ATI outperforms 67.10% of its industry peers.
ATI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.23%, ATI perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
In the last couple of years the Gross Margin of ATI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 8.81% | ||
| GM | 19.23% |
OM growth 3Y54.57%
OM growth 5Y4.9%
PM growth 3YN/A
PM growth 5Y12.36%
GM growth 3Y25.12%
GM growth 5Y4.3%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for ATI has been increased compared to 5 years ago.
ATI has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 1.56 is on the high side and indicates that ATI has dependencies on debt financing.
ATI has a Debt to Equity ratio of 1.56. This is amonst the worse of the industry: ATI underperforms 91.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC8.3%
2.3 Liquidity
A Current Ratio of 2.80 indicates that ATI has no problem at all paying its short term obligations.
ATI's Current ratio of 2.80 is in line compared to the rest of the industry. ATI outperforms 56.77% of its industry peers.
A Quick Ratio of 1.53 indicates that ATI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.53, ATI is in line with its industry, outperforming 52.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.38% over the past year.
Measured over the past years, ATI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.35% on average per year.
The Revenue has grown by 8.80% in the past year. This is quite good.
ATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.62% yearly.
EPS 1Y (TTM)12.38%
EPS 3YN/A
EPS 5Y8.35%
EPS growth Q2Q20.75%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y11.86%
Revenue growth 5Y0.62%
Revenue growth Q2Q5.3%
3.2 Future
The Earnings Per Share is expected to grow by 15.69% on average over the next years. This is quite good.
ATI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y3.09%
EPS Next 2Y14.91%
EPS Next 3Y15.69%
EPS Next 5YN/A
Revenue Next Year5.22%
Revenue Next 2Y6.39%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
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
ATI is valuated rather expensively with a Price/Earnings ratio of 21.96.
ATI's Price/Earnings ratio is a bit cheaper when compared to the industry. ATI is cheaper than 70.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ATI is valued at the same level.
A Price/Forward Earnings ratio of 21.30 indicates a rather expensive valuation of ATI.
The rest of the industry has a similar Price/Forward Earnings ratio as ATI.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, ATI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.18 |
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.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 15.69% in the coming years.
PEG (NY)7.12
PEG (5Y)2.63
EPS Next 2Y14.91%
EPS Next 3Y15.69%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATI INC
NYSE:ATI (4/25/2024, 7:04:00 PM)
After market: 49.84 0 (0%)49.84
+0.62 (+1.26%)
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 Cap6.20B
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 | 21.96 | ||
| Fwd PE | 21.3 | ||
| 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)7.12
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 26.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.37% | ||
| PM (TTM) | 8.81% | ||
| 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 Rank | Sector 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)12.38%
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