ATI INC (ATI) Stock Fundamental Analysis
NYSE:ATI - New York Stock Exchange, Inc. - US01741R1023 - Common Stock - Currency: USD
Taking everything into account, ATI scores 6 out of 10 in our fundamental rating. ATI was compared to 154 industry peers in the Metals & Mining industry. While ATI has a great profitability rating, 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.
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
ATI has a Return On Assets of 7.69%. This is amongst the best in the industry. ATI outperforms 83.77% of its industry peers.
With an excellent Return On Equity value of 21.29%, ATI belongs to the best of the industry, outperforming 91.56% of the companies in the same industry.
ATI has a better Return On Invested Capital (11.58%) than 88.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATI is in line with the industry average of 11.16%.
The 3 year average ROIC (10.03%) for ATI is below the current ROIC(11.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | 21.29% | ||
| ROIC | 11.58% |
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
The Profit Margin of ATI (8.93%) is better than 79.22% of its industry peers.
ATI's Profit Margin has improved in the last couple of years.
ATI has a better Operating Margin (13.34%) than 69.48% of its industry peers.
In the last couple of years the Operating Margin of ATI has grown nicely.
Looking at the Gross Margin, with a value of 21.07%, ATI is in the better half of the industry, outperforming 60.39% 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 | 13.34% | ||
| PM (TTM) | 8.93% | ||
| GM | 21.07% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATI is creating some value.
Compared to 1 year ago, ATI has more shares outstanding
ATI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.75 indicates that ATI is not in any danger for bankruptcy at the moment.
ATI has a Altman-Z score of 3.75. This is in the better half of the industry: ATI outperforms 66.23% of its industry peers.
The Debt to FCF ratio of ATI is 10.26, which is on the high side as it means it would take ATI, 10.26 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 10.26, ATI is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that ATI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, ATI is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.19
WACC9.75%
2.3 Liquidity
ATI has a Current Ratio of 2.53. This indicates that ATI is financially healthy and has no problem in meeting its short term obligations.
ATI has a Current ratio of 2.53. This is comparable to the rest of the industry: ATI outperforms 57.14% of its industry peers.
A Quick Ratio of 1.30 indicates that ATI should not have too much problems paying its short term obligations.
ATI has a Quick ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.91% over the past year.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.82% in the past year.
Measured over the past years, ATI shows a small growth in Revenue. The Revenue has been growing by 1.14% on average per year.
EPS 1Y (TTM)19.91%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%50%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%9.73%
3.2 Future
ATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.65% yearly.
Based on estimates for the next years, ATI will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
EPS Next Y21.38%
EPS Next 2Y23.71%
EPS Next 3Y23.17%
EPS Next 5Y18.65%
Revenue Next Year8.55%
Revenue Next 2Y8.31%
Revenue Next 3Y8.37%
Revenue Next 5Y7.17%
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 accelerating.
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
Based on the Price/Earnings ratio of 29.80, the valuation of ATI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ATI indicates a somewhat cheap valuation: ATI is cheaper than 64.94% of the companies listed in the same industry.
ATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.37, the valuation of ATI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.17. ATI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATI is on the same level as its industry peers.
61.69% 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 | 61.72 | ||
| EV/EBITDA | 17.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATI has an outstanding profitability rating, which may justify a higher PE ratio.
ATI's earnings are expected to grow with 23.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)1.94
EPS Next 2Y23.71%
EPS Next 3Y23.17%
5. Dividend
5.1 Amount
ATI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.77
+1.13 (+1.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.83%
Inst Owner Change-1.19%
Ins Owners1.1%
Ins Owner Change1.19%
Market Cap11.39B
Analysts81.25
Price Target76.88 (-4.82%)
Short Float %2.55%
Short Ratio1.39
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)23.9%
Min EPS beat(2)20.32%
Max EPS beat(2)27.48%
EPS beat(4)3
Avg EPS beat(4)10.04%
Min EPS beat(4)-9.85%
Max EPS beat(4)27.48%
EPS beat(8)7
Avg EPS beat(8)8.36%
EPS beat(12)11
Avg EPS beat(12)9.36%
EPS beat(16)15
Avg EPS beat(16)47.45%
Revenue beat(2)2
Avg Revenue beat(2)5.18%
Min Revenue beat(2)3.94%
Max Revenue beat(2)6.42%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)6.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)1.52%
Revenue beat(16)10
Avg Revenue beat(16)2.31%
PT rev (1m)6.61%
PT rev (3m)2.27%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)3.17%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 21.37 | ||
| P/S | 2.55 | ||
| P/FCF | 61.72 | ||
| P/OCF | 27.71 | ||
| P/B | 6.08 | ||
| P/tB | 6.92 | ||
| EV/EBITDA | 17.05 |
EPS(TTM)2.71
EY3.36%
EPS(NY)3.78
Fwd EY4.68%
FCF(TTM)1.31
FCFY1.62%
OCF(TTM)2.91
OCFY3.61%
SpS31.64
BVpS13.28
TBVpS11.67
PEG (NY)1.39
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | 21.29% | ||
| ROCE | 14.71% | ||
| ROIC | 11.58% | ||
| ROICexc | 13.12% | ||
| ROICexgc | 14.02% | ||
| OM | 13.34% | ||
| PM (TTM) | 8.93% | ||
| GM | 21.07% | ||
| FCFM | 4.14% |
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%
ROICexcg growth 3Y44.81%
ROICexcg 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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.26 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 144.98% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.71% | ||
| Profit Quality | 46.3% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.75 |
F-Score6
WACC9.75%
ROIC/WACC1.19
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)19.91%
EPS 3Y174.06%
EPS 5Y15.34%
EPS Q2Q%50%
EPS Next Y21.38%
EPS Next 2Y23.71%
EPS Next 3Y23.17%
EPS Next 5Y18.65%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y15.93%
Revenue growth 5Y1.14%
Sales Q2Q%9.73%
Revenue Next Year8.55%
Revenue Next 2Y8.31%
Revenue Next 3Y8.37%
Revenue Next 5Y7.17%
EBIT growth 1Y23.97%
EBIT growth 3Y73.58%
EBIT growth 5Y8.45%
EBIT Next Year46.76%
EBIT Next 3Y24.82%
EBIT Next 5Y17.83%
FCF growth 1Y2297.62%
FCF growth 3YN/A
FCF growth 5Y21.86%
OCF growth 1Y162.08%
OCF growth 3Y192.98%
OCF growth 5Y11.97%