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ATI (ATI)
NYSE:ATI
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ATI
(NYSE:ATI)
Rating:76Outperform
Price Target:―
Positive Factors
Aerospace and Defense Demand
Estimates are raised for 2025 to reflect stronger aero engine and defense demand.
Airbus Contract
ATI signed a 5-year, $1B Airbus contract that will double ATI's C26 Airbus sales compared to C25.
Share Repurchase Program
ATI signaled it would aggressively accelerate share repurchases, repurchasing up to $250M.
Negative Factors
Competition and Market Performance
ATI's stock has lagged CRS significantly and recent operating issues may limit upward re-rating potential.
Labor Agreement Issues
ATI announced that its Specialty Rolled Products employees in Western PA and Lockport, NY, and the United Steelworkers failed to ratify a labor agreement.
Tariff Impact
Industrial segments of ATI’s portfolio could face exposure due to tariffs.
ATI (ATI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.67B
Dividend YieldN/A
Average Volume (3M)2.09M
Price to Earnings (P/E)27.4
Beta (1Y)1.63
Revenue Growth6.82%
EPS Growth3.49%
CountryUS
Employees7,800
SectorIndustrials
Sector Strength92
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.72
Shares Outstanding141,067,580
10 Day Avg. Volume1,807,627
30 Day Avg. Volume2,090,259
Financial Highlights & Ratios
PEG Ratio4.25
Price to Book (P/B)4.98
Price to Sales (P/S)0.00
P/FCF Ratio30.30
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit12.28
Enterprise Value/Ebitda4.42
Forecast
1Y Price Target
$74.86Price Target Upside-1.03% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering7
ATI Business Overview & Revenue Model
Company DescriptionATI Inc. manufactures and sells specialty materials and components worldwide. The company operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The segment serves aerospace and defense, medical, and energy markets. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products, and titanium products. This segment offers its solutions to the energy, aerospace and defense, automotive, and electronics markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was founded in 1960 and is headquartered in Dallas, Texas.
How the Company Makes MoneyATI Inc. generates revenue through the production and sale of high-performance materials and components. Its key revenue streams include the sale of titanium and nickel-based alloys to aerospace manufacturers for aircraft components, supplying stainless steel and specialty materials to the oil and gas industry, and providing advanced materials for medical device manufacturers. Additionally, ATI partners with leading companies in its target industries to develop customized solutions, enhancing its market position and driving sales growth. The company's revenue is further bolstered by its focus on innovation and quality in its product offerings, ensuring a steady demand from industries requiring durable and reliable materials.
ATI Financial Statement Overview
Summary
ATI demonstrates solid financial health across all verticals. The company is experiencing steady revenue growth with improving profitability margins, maintaining a balanced capital structure with moderate leverage, and showcasing strong cash flow generation. These factors collectively highlight ATI's stable and promising financial position in the manufacturing sector.Income Statement
ATI has shown a strong increase in revenue over the years, with the latest TTM revenue up by 2.3% compared to the previous year, indicating robust growth. Gross Profit Margin has been stable around 21%, and the Net Profit Margin has improved significantly to 8.9% in TTM, reflecting enhanced profitability. The EBIT and EBITDA Margins have also shown positive trends, highlighting efficient operations.85
Very Positive
Balance Sheet
ATI maintains a healthy balance sheet with a Debt-to-Equity Ratio of approximately 1.01, reflecting moderate leverage. The Return on Equity (ROE) has improved substantially to 21.3% in TTM, indicating effective use of equity to generate profits. The Equity Ratio is stable at around 36%, showing a balanced capital structure.78
Positive
Cash Flow
Free Cash Flow has seen a remarkable growth of 97.9% from the previous year, underscoring strong cash generation capabilities. Operating Cash Flow to Net Income Ratio is at 1.27, indicating robust cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio of 0.83 further emphasizes strong cash flow performance.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.46B | 4.36B | 4.17B | 3.84B | 2.80B | 2.98B | Gross Profit |
| 936.60M | 898.20M | 802.60M | 714.20M | 333.20M | 292.80M | EBIT |
| 636.50M | 608.90M | 466.40M | 287.30M | 161.70M | 28.50M | EBITDA |
| 740.30M | 608.90M | 547.10M | 599.30M | 260.80M | -1.30B | Net Income Common Stockholders |
| 398.70M | 367.80M | 410.80M | 130.90M | -16.20M | -1.56B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 394.40M | 721.20M | 743.90M | 584.00M | 687.70M | 645.90M | Total Assets |
| 4.78B | 5.23B | 4.99B | 4.45B | 4.29B | 4.03B | Total Debt |
| 2.17B | 1.90B | 2.18B | 1.75B | 1.84B | 1.57B | Net Debt |
| 1.78B | 1.17B | 1.44B | 1.16B | 1.16B | 921.90M | Total Liabilities |
| 3.41B | 3.28B | 3.50B | 3.29B | 3.45B | 3.39B | Stockholders Equity |
| 1.26B | 1.85B | 1.37B | 1.05B | 685.60M | 521.10M |
| Cash Flow | Free Cash Flow | ||||
| 332.70M | 168.10M | -114.80M | 94.00M | -136.50M | 30.40M | Operating Cash Flow |
| 506.00M | 407.20M | 85.90M | 224.90M | 16.10M | 166.90M | Investing Cash Flow |
| -146.40M | -159.60M | -193.20M | -126.70M | -77.30M | -128.70M | Financing Cash Flow |
| -73.50M | -260.40M | 267.20M | -201.90M | 103.00M | 116.90M |
ATI Technical Analysis
Positive
75.64
Price Trends
57.53
Positive
57.64
Positive
59.15
Positive
Market Momentum
5.88
Positive
78.65
Negative
70.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATI, the sentiment is Positive. The current price of 75.64 is above the 20-day moving average (MA) of 69.58, above the 50-day MA of 57.53, and above the 200-day MA of 59.15, indicating a bullish trend. The MACD of 5.88 indicates Positive momentum. The RSI at 78.65 is Negative, neither overbought nor oversold. The STOCH value of 70.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATI.
ATI Risk Analysis
ATI disclosed 29 risk factors in its most recent earnings report. ATI reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ATI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.46B | 32.61 | 21.78% | 0.35% | 7.40% | 168.67% | |
77 Outperform | $7.47B | 27.67 | 16.64% | 0.26% | -1.85% | 16.06% | |
76 Outperform | $10.67B | 27.37 | 25.42% | ― | 6.82% | 3.49% | |
74 Outperform | $8.39B | 13.82 | 24.51% | 1.12% | 18.81% | 10.05% | |
70 Outperform | $2.66B | 49.80 | 13.01% | 0.76% | 2.61% | -53.74% | |
66 Neutral | $2.87B | 48.16 | 6.56% | 1.16% | -69.82% | -78.10% | |
64 Neutral | $4.39B | 11.81 | 5.20% | 249.39% | 3.96% | -12.36% |
* Industrials Sector Average
Performance Comparison
ATI
ATI
75.64
14.32
23.35%
AZZ
AZZ
88.99
4.71
5.59%
CRS
Carpenter Technology
230.16
118.34
105.83%
MLI
Mueller Industries
75.86
19.73
35.15%
WOR
Worthington Industries
57.59
1.32
2.35%
ESAB
ESAB Corporation
123.22
21.94
21.66%
ATI Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 39.10%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with strong revenue growth and significant achievements in aerospace and defense markets. However, there is some uncertainty due to trade-related challenges and a slowdown in China's economy. Despite these challenges, the company has strategies in place to mitigate negative impacts.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenues grew 10% year-over-year, exceeding $1.1 billion for the quarter.
Exceeded Financial Guidance
Adjusted EBITDA reached $195 million, surpassing the top end of guidance by $15 million. Adjusted earnings per share came in at $0.72, beating the guidance range of $0.55 to $0.61.
Labor Agreement Ratified
1,000 USW represented employees ratified a six-year labor agreement, bringing long-term labor stability.
Share Buyback Acceleration
Repurchased $70 million worth of shares in Q1 and plans to repurchase as much as $250 million in Q2.
Jet Engine Business Growth
Jet engine sales accounted for 37% of total Q1 revenue and grew 35% year-over-year.
Defense Sales Increase
Defense sales grew 11% year-over-year in the first quarter.
New Airbus Contract
Signed a new five-year agreement with Airbus, approaching $1 billion in sales.
Negative Updates
Industrial Market Uncertainty
Trade-related uncertainty affecting industrial markets, with some customers taking a wait-and-see posture.
Tariff Exposure
Tariffs represent approximately $50 million in annual cost exposure prior to mitigation offsets.
China Economic Slowdown
Lower year-over-year sales expected in areas impacted by China's slowed economy.
Company Guidance
During ATI's first-quarter 2025 earnings call, the company reported strong financial performance and provided guidance for the rest of the year. Revenue increased by 10% year-over-year, reaching approximately $1.14 billion, while adjusted EBITDA was $195 million, surpassing the top end of their guidance by $15 million. Adjusted earnings per share were $0.72, exceeding the guidance range of $0.55 to $0.61. The company maintained its full-year guidance for adjusted EBITDA of $800 million to $840 million and free cash flow of $240 million to $360 million. ATI plans to repurchase up to $250 million in shares in the second quarter, pulling forward its buyback program. The aerospace and defense markets continued to drive growth, with jet engine sales expected to grow between 15% and 20% for the year. Despite the evolving trade and tariff environment, the company anticipates minimal impact on its full-year earnings due to various mitigation strategies.ATI Corporate Events
Shareholder MeetingsRegulatory Filings and Compliance
ATI Updates Bylaws Following SEC Rule Alignment
Neutral
May 21, 2025
On May 15, 2025, ATI Inc.’s Board of Directors approved an amendment and restatement of the company’s bylaws to align with the SEC’s Rule 14a-19 and make related technical changes. The following day, at the 2025 Annual Meeting of Stockholders, ATI Inc. held elections for three directors, conducted an advisory vote on executive compensation for 2024, and ratified Ernst & Young LLP as the company’s independent auditors for the 2025 fiscal year.
The most recent analyst rating on (ATI) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on ATI stock, see the ATI Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.