ATKORE INC (ATKR) Stock Fundamental Analysis
NYSE:ATKR - New York Stock Exchange, Inc. - US0476491081 - Common Stock - Currency: USD
Overall ATKR gets a fundamental rating of 7 out of 10. We evaluated ATKR against 94 industry peers in the Electrical Equipment industry. ATKR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATKR has a bad growth rate and is valued cheaply. These ratings would make ATKR suitable for value investing!
1. Profitability
1.1 Basic Checks
ATKR had positive earnings in the past year.
In the past year ATKR had a positive cash flow from operations.
In the past 5 years ATKR has always been profitable.
In the past 5 years ATKR always reported a positive cash flow from operatings.
1.2 Ratios
ATKR's Return On Assets of 6.64% is amongst the best of the industry. ATKR outperforms 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.
Looking at the Return On Invested Capital, with a value of 14.20%, ATKR belongs to the top of the industry, outperforming 94.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATKR is significantly above the industry average of 9.87%.
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
ATKR has a better Profit Margin (6.39%) than 81.91% of its industry peers.
ATKR's Profit Margin has improved in the last couple of years.
The Operating Margin of ATKR (13.93%) is better than 87.23% of its industry peers.
ATKR's Operating Margin has improved in the last couple of years.
ATKR has a Gross Margin of 28.65%. This is in the better half 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ATKR is creating value.
Compared to 1 year ago, ATKR has less shares outstanding
ATKR has less shares outstanding than it did 5 years ago.
ATKR has a better debt/assets ratio than last year.
2.2 Solvency
ATKR has an Altman-Z score of 3.38. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, ATKR is in the better half of the industry, outperforming 69.15% 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.
The Debt to FCF ratio of ATKR (2.36) is better than 84.04% of its industry peers.
ATKR has a Debt/Equity ratio of 0.54. This is a neutral value indicating ATKR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, ATKR is in line with its industry, outperforming 43.62% of the companies in the same industry.
Although ATKR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.76
WACC8.05%
2.3 Liquidity
ATKR has a Current Ratio of 3.02. This indicates that ATKR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ATKR (3.02) is better than 74.47% of its industry peers.
ATKR has a Quick Ratio of 1.98. This is a normal value and indicates that ATKR is financially healthy and should not expect problems in meeting its short term obligations.
ATKR has a Quick ratio of 1.98. This is in the better half of the industry: ATKR outperforms 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for ATKR have decreased strongly by -45.39% in the last year.
The Earnings Per Share has been growing by 31.86% on average over the past years. This is a very strong growth
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
The Earnings Per Share is expected to decrease by -21.01% on average over the next years. This is quite bad
The Revenue is expected to decrease by -1.29% on average over the next years.
EPS Next Y-54.98%
EPS Next 2Y-33.15%
EPS Next 3Y-21.01%
EPS Next 5YN/A
Revenue Next Year-9.14%
Revenue Next 2Y-3.58%
Revenue Next 3Y-1.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.81, which indicates a rather cheap valuation of ATKR.
96.81% of the companies in the same industry are more expensive than ATKR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.55. ATKR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.45, the valuation of ATKR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ATKR is valued cheaper than 89.36% of the companies in the same industry.
ATKR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATKR is valued cheaply inside the industry as 98.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATKR is valued cheaply inside the industry as 96.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.98 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
The excellent profitability rating of ATKR may justify a higher PE ratio.
ATKR's earnings are expected to decrease with -21.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-33.15%
EPS Next 3Y-21.01%
5. Dividend
5.1 Amount
ATKR has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 4.28, ATKR pays a better dividend. On top of this ATKR pays more dividend than 95.74% of the companies listed in the same industry.
ATKR's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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-33.15%
EPS Next 3Y-21.01%
67.38
-3.22 (-4.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.33%
Inst Owner Change-7.7%
Ins Owners1%
Ins Owner Change1.1%
Market Cap2.27B
Analysts76.67
Price Target75.31 (11.77%)
Short Float %4.74%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)1.61%
PT rev (3m)-16.57%
EPS NQ rev (1m)-12.05%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)4.52%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)-2.6%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 10.45 | ||
| P/S | 0.76 | ||
| P/FCF | 6.98 | ||
| P/OCF | 4.88 | ||
| P/B | 1.61 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)9.9
EY14.69%
EPS(NY)6.45
Fwd EY9.57%
FCF(TTM)9.65
FCFY14.32%
OCF(TTM)13.81
OCFY20.49%
SpS88.38
BVpS41.91
TBVpS26.2
PEG (NY)N/A
PEG (5Y)0.21
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 | 3.38 |
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-54.98%
EPS Next 2Y-33.15%
EPS Next 3Y-21.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y3.03%
Revenue growth 5Y10.81%
Sales Q2Q%-11.5%
Revenue Next Year-9.14%
Revenue Next 2Y-3.58%
Revenue Next 3Y-1.29%
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%