ATI Inc.
ATI Inc. Fundamental Analysis
ATI Inc. (ATI) shows moderate financial fundamentals with a PE ratio of 49.06, profit margin of 9.26%, and ROE of 24.23%. The company generates $4.6B in annual revenue with moderate year-over-year growth of 5.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ATI's fundamental strength across five key dimensions:
Efficiency Score
WeakATI struggles to generate sufficient returns from assets.
Valuation Score
WeakATI trades at a premium to fair value.
Growth Score
ModerateATI shows steady but slowing expansion.
Financial Health Score
ModerateATI shows balanced financial health with some risks.
Profitability Score
ModerateATI maintains healthy but balanced margins.
Key Financial Metrics
Is ATI Expensive or Cheap?
P/E Ratio
ATI trades at 49.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ATI's PEG of 9.65 indicates potential overvaluation.
Price to Book
The market values ATI Inc. at 11.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.20 times EBITDA. This signals the market has high growth expectations.
How Well Does ATI Make Money?
Net Profit Margin
For every $100 in sales, ATI Inc. keeps $9.26 as profit after all expenses.
Operating Margin
Core operations generate 14.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.23 in profit for every $100 of shareholder equity.
ROA
ATI Inc. generates $8.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ATI Inc. produces operating cash flow of $841.37M, showing steady but balanced cash generation.
Free Cash Flow
ATI Inc. generates strong free cash flow of $556.71M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.07 in free cash annually.
FCF Yield
ATI converts 2.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How ATI Stacks Against Its Sector Peers
| Metric | ATI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.06 | 26.04 | Worse (Expensive) |
| ROE | 24.23% | 1282.00% | Weak |
| Net Margin | 9.26% | -38546.00% (disorted) | Weak |
| Debt/Equity | 1.03 | 0.71 | Weak (High Leverage) |
| Current Ratio | 2.67 | 10.55 | Strong Liquidity |
| ROA | 8.13% | -1499346.00% (disorted) | Weak |
ATI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ATI Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
123.46%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
235.93%
Industry Style: Cyclical, Value, Infrastructure
High Growth