ATKORE INC (ATKR) Stock Fundamental Analysis
NYSE:ATKR - New York Stock Exchange, Inc. - US0476491081 - Common Stock - Currency: USD
ATKR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 94 industry peers in the Electrical Equipment industry. ATKR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ATKR is cheap, but on the other hand it scores bad on growth. These ratings could make ATKR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ATKR had positive earnings in the past year.
ATKR had a positive operating cash flow in the past year.
ATKR had positive earnings in each of the past 5 years.
ATKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ATKR (6.64%) is better than 84.04% of its industry peers.
ATKR's Return On Equity of 13.46% is amongst the best of the industry. ATKR outperforms 84.04% of its industry peers.
With an excellent Return On Invested Capital value of 14.20%, ATKR belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATKR is significantly above the industry average of 9.89%.
The 3 year average ROIC (32.71%) for ATKR is well above the current ROIC(14.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 13.46% | ||
| ROIC | 14.2% |
ROA(3y)24.39%
ROA(5y)21.76%
ROE(3y)49.5%
ROE(5y)50.91%
ROIC(3y)32.71%
ROIC(5y)30.36%
1.3 Margins
The Profit Margin of ATKR (6.39%) is better than 81.91% of its industry peers.
ATKR's Profit Margin has improved in the last couple of years.
ATKR has a better Operating Margin (13.93%) than 86.17% of its industry peers.
In the last couple of years the Operating Margin of ATKR has grown nicely.
ATKR's Gross Margin of 28.65% is fine compared to the rest of the industry. ATKR outperforms 64.89% of its industry peers.
ATKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.93% | ||
| PM (TTM) | 6.39% | ||
| GM | 28.65% |
OM growth 3Y-10.58%
OM growth 5Y10.46%
PM growth 3Y-9.54%
PM growth 5Y15.6%
GM growth 3Y-4.33%
GM growth 5Y5.35%
2. Health
2.1 Basic Checks
ATKR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ATKR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ATKR has been reduced compared to 5 years ago.
The debt/assets ratio for ATKR has been reduced compared to a year ago.
2.2 Solvency
ATKR has an Altman-Z score of 3.44. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.44, ATKR is doing good in the industry, outperforming 67.02% of the companies in the same industry.
The Debt to FCF ratio of ATKR is 2.36, which is a good value as it means it would take ATKR, 2.36 years of fcf income to pay off all of its debts.
ATKR has a better Debt to FCF ratio (2.36) than 82.98% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that ATKR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, ATKR perfoms like the industry average, outperforming 43.62% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ATKR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.76
WACC8.05%
2.3 Liquidity
A Current Ratio of 3.02 indicates that ATKR has no problem at all paying its short term obligations.
The Current ratio of ATKR (3.02) is better than 74.47% of its industry peers.
A Quick Ratio of 1.98 indicates that ATKR should not have too much problems paying its short term obligations.
ATKR has a better Quick ratio (1.98) than 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
ATKR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.39%.
ATKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.86% yearly.
ATKR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.83%.
Measured over the past years, ATKR shows a quite strong growth in Revenue. The Revenue has been growing by 10.81% on average per year.
EPS 1Y (TTM)-45.39%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-50%
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-11.5%
3.2 Future
ATKR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.45% yearly.
The Revenue is expected to decrease by -1.24% on average over the next years.
EPS Next Y-54.4%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
EPS Next 5YN/A
Revenue Next Year-9.33%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.24%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.59, the valuation of ATKR can be described as very cheap.
ATKR's Price/Earnings ratio is rather cheap when compared to the industry. ATKR is cheaper than 96.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, ATKR is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.41, the valuation of ATKR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 90.43% of the companies listed in the same industry.
ATKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
98.94% of the companies in the same industry are more expensive than ATKR, based on the Enterprise Value to EBITDA ratio.
96.81% of the companies in the same industry are more expensive than ATKR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
ATKR has an outstanding profitability rating, which may justify a higher PE ratio.
ATKR's earnings are expected to decrease with -20.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
5. Dividend
5.1 Amount
ATKR has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
ATKR's Dividend Yield is rather good when compared to the industry average which is at 4.40. ATKR pays more dividend than 95.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, ATKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
ATKR is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ATKR pays out 23.56% of its income as dividend. This is a sustainable payout ratio.
DP23.56%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
75.14
-0.17 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.35%
Inst Owner Change-7.7%
Ins Owners0.99%
Ins Owner Change1.05%
Market Cap2.53B
Analysts76.67
Price Target77.01 (2.49%)
Short Float %4.65%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP23.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.38%
Min EPS beat(2)2.43%
Max EPS beat(2)34.33%
EPS beat(4)2
Avg EPS beat(4)6.64%
Min EPS beat(4)-6.74%
Max EPS beat(4)34.33%
EPS beat(8)6
Avg EPS beat(8)9.44%
EPS beat(12)10
Avg EPS beat(12)10.12%
EPS beat(16)14
Avg EPS beat(16)14.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-0.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-2.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)2.21%
PT rev (1m)3.9%
PT rev (3m)-2.79%
EPS NQ rev (1m)-3.91%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)1.31%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.85 | ||
| P/FCF | 7.79 | ||
| P/OCF | 5.44 | ||
| P/B | 1.79 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)9.9
EY13.18%
EPS(NY)6.59
Fwd EY8.76%
FCF(TTM)9.65
FCFY12.84%
OCF(TTM)13.81
OCFY18.38%
SpS88.38
BVpS41.91
TBVpS26.2
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 13.46% | ||
| ROCE | 17.57% | ||
| ROIC | 14.2% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 22.34% | ||
| OM | 13.93% | ||
| PM (TTM) | 6.39% | ||
| GM | 28.65% | ||
| FCFM | 10.92% |
ROA(3y)24.39%
ROA(5y)21.76%
ROE(3y)49.5%
ROE(5y)50.91%
ROIC(3y)32.71%
ROIC(5y)30.36%
ROICexc(3y)39.4%
ROICexc(5y)39.22%
ROICexgc(3y)62.12%
ROICexgc(5y)63.67%
ROCE(3y)40.47%
ROCE(5y)37.55%
ROICexcg growth 3Y-29.69%
ROICexcg growth 5Y0.24%
ROICexc growth 3Y-26.22%
ROICexc growth 5Y5.48%
OM growth 3Y-10.58%
OM growth 5Y10.46%
PM growth 3Y-9.54%
PM growth 5Y15.6%
GM growth 3Y-4.33%
GM growth 5Y5.35%
F-Score4
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 115.55% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 170.99% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.44 |
F-Score4
WACC8.05%
ROIC/WACC1.76
Cap/Depr(3y)158.09%
Cap/Depr(5y)120.34%
Cap/Sales(3y)4.79%
Cap/Sales(5y)3.7%
Profit Quality(3y)81.53%
Profit Quality(5y)95.44%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.39%
EPS 3Y3.49%
EPS 5Y31.86%
EPS Q2Q%-50%
EPS Next Y-54.4%
EPS Next 2Y-32.45%
EPS Next 3Y-20.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-11.5%
Revenue Next Year-9.33%
Revenue Next 2Y-3.85%
Revenue Next 3Y-1.24%
Revenue Next 5YN/A
EBIT growth 1Y-56.46%
EBIT growth 3Y-7.87%
EBIT growth 5Y22.4%
EBIT Next Year-43.53%
EBIT Next 3Y-15.57%
EBIT Next 5YN/A
FCF growth 1Y-61.61%
FCF growth 3Y-7.75%
FCF growth 5Y17.96%
OCF growth 1Y-54.84%
OCF growth 3Y-1.41%
OCF growth 5Y21.23%