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 93 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 valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years ATKR has been profitable.
Each year in the past 5 years ATKR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.64%, ATKR belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
With an excellent Return On Equity value of 13.46%, ATKR belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
ATKR has a better Return On Invested Capital (14.20%) than 94.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
ATKR has a Profit Margin of 6.39%. This is amongst the best in the industry. ATKR outperforms 81.72% of its industry peers.
ATKR's Profit Margin has improved in the last couple of years.
ATKR has a Operating Margin of 13.93%. This is amongst the best in the industry. ATKR outperforms 86.02% of its industry peers.
ATKR's Operating Margin has improved in the last couple of years.
The Gross Margin of ATKR (28.65%) is better than 63.44% of its industry peers.
In the last couple of years the Gross Margin of ATKR has grown nicely.
| 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.
Compared to 1 year ago, ATKR has less shares outstanding
ATKR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATKR has an improved debt to assets ratio.
2.2 Solvency
ATKR has an Altman-Z score of 3.47. This indicates that ATKR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.47, ATKR is doing good in the industry, outperforming 69.89% 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.
Looking at the Debt to FCF ratio, with a value of 2.36, ATKR belongs to the top of the industry, outperforming 82.80% of the companies in the same industry.
ATKR has a Debt/Equity ratio of 0.54. This is a neutral value indicating ATKR is somewhat dependend on debt financing.
ATKR has a Debt to Equity ratio (0.54) which is comparable to the rest of the 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 | 3.47 |
ROIC/WACC1.78
WACC7.96%
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.
ATKR's Current ratio of 3.02 is fine compared to the rest of the industry. ATKR outperforms 75.27% 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 better Quick ratio (1.98) than 75.27% 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%.
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%.
The Revenue has been growing by 10.81% on average over the past years. This is quite good.
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
Based on estimates for the next years, ATKR will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.45% on average per year.
ATKR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.24% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.67, the valuation of ATKR can be described as very cheap.
96.77% 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 26.82. ATKR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.53, the valuation of ATKR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATKR indicates a rather cheap valuation: ATKR is cheaper than 90.32% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. ATKR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATKR is valued cheaper than 98.92% of the companies in the same industry.
ATKR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATKR is cheaper than 95.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
ATKR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ATKR's earnings are expected to decrease with -20.45% in the coming years.
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 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.71, ATKR pays a better dividend. On top of this ATKR pays more dividend than 95.70% of the companies listed in the same industry.
ATKR's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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%
75.92
-1.1 (-1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.35%
Inst Owner Change-0.35%
Ins Owners0.99%
Ins Owner Change1.05%
Market Cap2.55B
Analysts76.67
Price Target77.01 (1.44%)
Short Float %4.5%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0%
PT rev (3m)3.9%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-11.56%
EPS NY rev (1m)0%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 11.53 | ||
| P/S | 0.86 | ||
| P/FCF | 7.87 | ||
| P/OCF | 5.5 | ||
| P/B | 1.81 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)9.9
EY13.04%
EPS(NY)6.59
Fwd EY8.67%
FCF(TTM)9.65
FCFY12.71%
OCF(TTM)13.81
OCFY18.19%
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 | 3.47 |
F-Score4
WACC7.96%
ROIC/WACC1.78
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%