AIR TRANSPORT SERVICES GROUP (ATSG) Stock Fundamental Analysis
USA - NASDAQ:ATSG - US00922R1059 - Common Stock
22.48 USD
-0.01 (-0.04%)
22.481 USD
0 (0%)
Overall ATSG gets a fundamental rating of 3 out of 10. We evaluated ATSG against 23 industry peers in the Air Freight & Logistics industry. There are concerns on the financial health of ATSG while its profitability can be described as average. ATSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ATSG had positive earnings in the past year.
In the past year ATSG had a positive cash flow from operations.
In the past 5 years ATSG has always been profitable.
ATSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATSG has a Return On Assets (0.70%) which is in line with its industry peers.
ATSG has a Return On Equity of 1.85%. This is comparable to the rest of the industry: ATSG outperforms 52.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.61%, ATSG is in line with its industry, outperforming 47.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATSG is significantly below the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 1.85% | ||
| ROIC | 2.61% |
ROA(3y)2.6%
ROA(5y)3.19%
ROE(3y)6.77%
ROE(5y)8.31%
ROIC(3y)4.14%
ROIC(5y)4.44%
1.3 Margins
ATSG's Profit Margin of 1.40% is in line compared to the rest of the industry. ATSG outperforms 56.52% of its industry peers.
In the last couple of years the Profit Margin of ATSG has declined.
Looking at the Operating Margin, with a value of 6.94%, ATSG is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
ATSG's Operating Margin has declined in the last couple of years.
ATSG has a Gross Margin of 52.60%. This is amongst the best in the industry. ATSG outperforms 86.96% of its industry peers.
ATSG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 1.4% | ||
| GM | 52.6% |
OM growth 3Y-16.89%
OM growth 5Y-10.66%
PM growth 3Y-52.85%
PM growth 5Y-19.8%
GM growth 3Y-1.52%
GM growth 5Y-2.17%
2. Health
2.1 Basic Checks
ATSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ATSG has been increased compared to 1 year ago.
ATSG has more shares outstanding than it did 5 years ago.
ATSG has a better debt/assets ratio than last year.
2.2 Solvency
ATSG has an Altman-Z score of 1.21. This is a bad value and indicates that ATSG is not financially healthy and even has some risk of bankruptcy.
ATSG's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. ATSG is outperformed by 60.87% of its industry peers.
The Debt to FCF ratio of ATSG is 7.67, which is on the high side as it means it would take ATSG, 7.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ATSG (7.67) is better than 69.57% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that ATSG has dependencies on debt financing.
ATSG's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. ATSG is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 7.67 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.43
WACC6.02%
2.3 Liquidity
A Current Ratio of 0.98 indicates that ATSG may have some problems paying its short term obligations.
The Current ratio of ATSG (0.98) is worse than 69.57% of its industry peers.
A Quick Ratio of 0.84 indicates that ATSG may have some problems paying its short term obligations.
ATSG's Quick ratio of 0.84 is on the low side compared to the rest of the industry. ATSG is outperformed by 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
ATSG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.46%.
The earnings per share for ATSG have been decreasing by -10.24% on average. This is quite bad
ATSG shows a decrease in Revenue. In the last year, the revenue decreased by -5.25%.
ATSG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)-38.46%
EPS 3Y-19.07%
EPS 5Y-10.24%
EPS Q2Q%122.22%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.2%
Revenue growth 5Y6.2%
Sales Q2Q%-0.05%
3.2 Future
ATSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.30% yearly.
The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y21.01%
EPS Next 2Y32.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y4.51%
Revenue Next 3Y7.99%
Revenue Next 5Y5.55%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.55, the valuation of ATSG can be described as expensive.
ATSG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.76, ATSG is valued at the same level.
ATSG is valuated rather expensively with a Price/Forward Earnings ratio of 21.11.
ATSG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATSG is cheaper than 65.22% of the companies in the same industry.
ATSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATSG indicates a rather cheap valuation: ATSG is cheaper than 91.30% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATSG indicates a rather cheap valuation: ATSG is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
ATSG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ATSG's earnings are expected to grow with 32.30% in the coming years.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y32.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.48
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners78.62%
Inst Owner Change0%
Ins Owners2.69%
Ins Owner Change0%
Market Cap1.48B
Revenue(TTM)1.96B
Net Income(TTM)27.43M
Analysts78.18
Price Target22.95 (2.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.08%
Min EPS beat(2)-25.9%
Max EPS beat(2)40.06%
EPS beat(4)3
Avg EPS beat(4)19.88%
Min EPS beat(4)-25.9%
Max EPS beat(4)48.93%
EPS beat(8)4
Avg EPS beat(8)4.85%
EPS beat(12)7
Avg EPS beat(12)7.13%
EPS beat(16)9
Avg EPS beat(16)6.57%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-8.96%
Max Revenue beat(2)9.82%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-8.96%
Max Revenue beat(4)9.82%
Revenue beat(8)2
Avg Revenue beat(8)-2.81%
Revenue beat(12)3
Avg Revenue beat(12)-2.23%
Revenue beat(16)5
Avg Revenue beat(16)-1.71%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 21.11 | ||
| P/S | 0.75 | ||
| P/FCF | 7.34 | ||
| P/OCF | 2.78 | ||
| P/B | 1 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)0.88
EY3.91%
EPS(NY)1.06
Fwd EY4.74%
FCF(TTM)3.06
FCFY13.62%
OCF(TTM)8.09
OCFY35.97%
SpS29.78
BVpS22.52
TBVpS15.43
PEG (NY)1.22
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 1.85% | ||
| ROCE | 3.85% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.66% | ||
| ROICexgc | 3.07% | ||
| OM | 6.94% | ||
| PM (TTM) | 1.4% | ||
| GM | 52.6% | ||
| FCFM | 10.29% |
ROA(3y)2.6%
ROA(5y)3.19%
ROE(3y)6.77%
ROE(5y)8.31%
ROIC(3y)4.14%
ROIC(5y)4.44%
ROICexc(3y)4.19%
ROICexc(5y)4.51%
ROICexgc(3y)4.9%
ROICexgc(5y)5.39%
ROCE(3y)6.1%
ROCE(5y)6.54%
ROICexgc growth 3Y-19.89%
ROICexgc growth 5Y-12.7%
ROICexc growth 3Y-18.6%
ROICexc growth 5Y-11.09%
OM growth 3Y-16.89%
OM growth 5Y-10.66%
PM growth 3Y-52.85%
PM growth 5Y-19.8%
GM growth 3Y-1.52%
GM growth 5Y-2.17%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 7.67 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 79.64% | ||
| Cap/Sales | 16.87% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 96.58% | ||
| Profit Quality | 735.62% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.21 |
F-Score6
WACC6.02%
ROIC/WACC0.43
Cap/Depr(3y)155.45%
Cap/Depr(5y)155.7%
Cap/Sales(3y)28.17%
Cap/Sales(5y)29.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.46%
EPS 3Y-19.07%
EPS 5Y-10.24%
EPS Q2Q%122.22%
EPS Next Y21.01%
EPS Next 2Y32.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.2%
Revenue growth 5Y6.2%
Sales Q2Q%-0.05%
Revenue Next Year4.58%
Revenue Next 2Y4.51%
Revenue Next 3Y7.99%
Revenue Next 5Y5.55%
EBIT growth 1Y-31.9%
EBIT growth 3Y-13.4%
EBIT growth 5Y-5.12%
EBIT Next Year313.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y244.81%
FCF growth 3Y36.81%
FCF growth 5YN/A
OCF growth 1Y-18.54%
OCF growth 3Y-2.99%
OCF growth 5Y6.07%
AIR TRANSPORT SERVICES GROUP / ATSG FAQ
Can you provide the ChartMill fundamental rating for AIR TRANSPORT SERVICES GROUP?
ChartMill assigns a fundamental rating of 3 / 10 to ATSG.
What is the valuation status for ATSG stock?
ChartMill assigns a valuation rating of 5 / 10 to AIR TRANSPORT SERVICES GROUP (ATSG). This can be considered as Fairly Valued.
How profitable is AIR TRANSPORT SERVICES GROUP (ATSG) stock?
AIR TRANSPORT SERVICES GROUP (ATSG) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ATSG stock?
The Price/Earnings (PE) ratio for AIR TRANSPORT SERVICES GROUP (ATSG) is 25.55 and the Price/Book (PB) ratio is 1.
What is the expected EPS growth for AIR TRANSPORT SERVICES GROUP (ATSG) stock?
The Earnings per Share (EPS) of AIR TRANSPORT SERVICES GROUP (ATSG) is expected to grow by 21.01% in the next year.