ATI INC (ATI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATI - US01741R1023 - Common Stock
96.47 USD
+1.67 (+1.76%)
97 USD
+0.53 (+0.55%)
Overall ATI gets a fundamental rating of 6 out of 10. We evaluated ATI against 71 industry peers in the Aerospace & Defense industry. ATI scores excellent on profitability, but 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.
ATI had a positive operating cash flow in the past year.
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
ATI's Return On Assets of 8.89% is amongst the best of the industry. ATI outperforms 92.96% of its industry peers.
ATI has a Return On Equity of 26.06%. This is amongst the best in the industry. ATI outperforms 95.77% of its industry peers.
With an excellent Return On Invested Capital value of 13.13%, ATI belongs to the best of the industry, outperforming 90.14% 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 8.47%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(13.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 26.06% | ||
| ROIC | 13.13% |
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
ATI's Profit Margin of 9.71% is fine compared to the rest of the industry. ATI outperforms 77.46% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.33%, ATI belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ATI has grown nicely.
With a Gross Margin value of 21.83%, ATI perfoms like the industry average, outperforming 43.66% 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 | 14.33% | ||
| PM (TTM) | 9.71% | ||
| GM | 21.83% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATI is still creating some value.
ATI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ATI has more shares outstanding
ATI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.22 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score (4.22) which is in line with its industry peers.
The Debt to FCF ratio of ATI is 4.13, which is a neutral value as it means it would take ATI, 4.13 years of fcf income to pay off all of its debts.
ATI has a Debt to FCF ratio of 4.13. This is amongst the best in the industry. ATI outperforms 80.28% of its industry peers.
A Debt/Equity ratio of 1.00 is on the high side and indicates that ATI has dependencies on debt financing.
The Debt to Equity ratio of ATI (1.00) is worse than 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 4.22 |
ROIC/WACC1.37
WACC9.59%
2.3 Liquidity
ATI has a Current Ratio of 2.50. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
ATI has a Current ratio (2.50) which is comparable to the rest of the industry.
ATI has a Quick Ratio of 1.18. 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 1.18, ATI is doing worse than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.62% over the past year.
ATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
Looking at the last year, ATI shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
The Revenue has been growing slightly by 1.14% on average over the past years.
EPS 1Y (TTM)33.62%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%41.67%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
3.2 Future
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
EPS Next Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
Revenue Next 5Y7.18%
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 stable.
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
With a Price/Earnings ratio of 31.12, ATI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ATI is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ATI to the average of the S&P500 Index (25.45), we can say ATI is valued slightly more expensively.
With a Price/Forward Earnings ratio of 25.03, ATI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ATI is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATI to the average of the S&P500 Index (34.46), we can say ATI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.12 | ||
| Fwd PE | 25.03 |
4.2 Price Multiples
ATI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATI is cheaper than 73.24% of the companies in the same industry.
83.10% 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 | 28.82 | ||
| EV/EBITDA | 17.78 |
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.
A more expensive valuation may be justified as ATI's earnings are expected to grow with 22.90% in the coming years.
PEG (NY)1.14
PEG (5Y)2.03
EPS Next 2Y24.92%
EPS Next 3Y22.9%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.47
+1.67 (+1.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change-2.72%
Ins Owners0.74%
Ins Owner Change-14.94%
Market Cap13.30B
Revenue(TTM)4.58B
Net Income(TTM)444.80M
Analysts81.33
Price Target117.54 (21.84%)
Short Float %2.05%
Short Ratio1.78
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)8.27%
Min EPS beat(2)2.42%
Max EPS beat(2)14.11%
EPS beat(4)4
Avg EPS beat(4)16.08%
Min EPS beat(4)2.42%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)9.24%
EPS beat(12)11
Avg EPS beat(12)7.09%
EPS beat(16)15
Avg EPS beat(16)24.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-1.27%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)9
Avg Revenue beat(16)1.81%
PT rev (1m)3.13%
PT rev (3m)6.69%
EPS NQ rev (1m)5.12%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.12 | ||
| Fwd PE | 25.03 | ||
| P/S | 2.9 | ||
| P/FCF | 28.82 | ||
| P/OCF | 19.1 | ||
| P/B | 7.79 | ||
| P/tB | 8.97 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)3.1
EY3.21%
EPS(NY)3.85
Fwd EY4%
FCF(TTM)3.35
FCFY3.47%
OCF(TTM)5.05
OCFY5.24%
SpS33.25
BVpS12.38
TBVpS10.75
PEG (NY)1.14
PEG (5Y)2.03
Graham Number29.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 26.06% | ||
| ROCE | 16.67% | ||
| ROIC | 13.13% | ||
| ROICexc | 14.49% | ||
| ROICexgc | 15.47% | ||
| OM | 14.33% | ||
| PM (TTM) | 9.71% | ||
| GM | 21.83% | ||
| FCFM | 10.07% |
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%
ROICexgc growth 3Y44.81%
ROICexgc 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-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.13 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 142.86% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.78% | ||
| Profit Quality | 103.71% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.22 |
F-Score8
WACC9.59%
ROIC/WACC1.37
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)33.62%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%41.67%
EPS Next Y27.36%
EPS Next 2Y24.92%
EPS Next 3Y22.9%
EPS Next 5Y18.02%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%7.07%
Revenue Next Year7.37%
Revenue Next 2Y7.7%
Revenue Next 3Y7.77%
Revenue Next 5Y7.18%
EBIT growth 1Y28.08%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.75%
EBIT Next 3Y23.19%
EBIT Next 5Y17.92%
FCF growth 1Y349.76%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y10047.1%
OCF growth 3Y192.98%
OCF growth 5Y11.97%
ATI INC / ATI FAQ
Can you provide the ChartMill fundamental rating for ATI INC?
ChartMill assigns a fundamental rating of 6 / 10 to ATI.
What is the valuation status of ATI INC (ATI) stock?
ChartMill assigns a valuation rating of 6 / 10 to ATI INC (ATI). This can be considered as Fairly Valued.
What is the profitability of ATI stock?
ATI INC (ATI) has a profitability rating of 8 / 10.
What is the valuation of ATI INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ATI INC (ATI) is 31.12 and the Price/Book (PB) ratio is 7.79.
What is the earnings growth outlook for ATI INC?
The Earnings per Share (EPS) of ATI INC (ATI) is expected to grow by 27.36% in the next year.