ATI (ATI) AI Stock Analysis

• Market Cap: $10.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.64
• Revenue Growth: 6.64%
• EPS Growth: 3.23%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 71
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.74
• Shares Outstanding: 137,832,140
• 10 Day Avg. Volume: 1,713,287
• 30 Day Avg. Volume: 1,929,706
• PEG Ratio: -1.36
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 42.56
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 14.82
• Enterprise Value/Ebitda: 18.37
• 1Y Price Target: $103.75
• Price Target Upside: 36.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $84.00 ▲(10.32% Upside)

ATI's overall stock score is driven by strong financial performance and positive earnings call outcomes, particularly in the aerospace sector. Technical analysis presents mixed signals, and valuation concerns persist due to a high P/E ratio and no dividend yield. The company's strategic agreements and improved financial metrics position it well for future growth, despite some market challenges.

Positive Factors

Long-Term Agreements

Long-term agreements with Boeing and Airbus enhance ATI's market position in aerospace, ensuring steady revenue streams and expanded product offerings.

Cash Flow Growth

Strong cash flow growth indicates robust cash generation capabilities, supporting future investments and debt servicing, enhancing financial stability.

High Performance Materials & Components Margins

Improved margins in the high-performance segment reflect operational efficiency and strong demand, contributing to sustained profitability.

Negative Factors

Industrial Market Challenges

Flat performance in the industrial segment due to tariffs and macroeconomic conditions could limit growth opportunities and revenue diversification.

Medical Market Weakness

Weakness in the medical market, driven by inventory and pricing pressures, may hinder revenue growth and impact overall market diversification.

Leverage Concerns

While leverage management has improved, reliance on debt financing poses risks to financial flexibility and could affect long-term stability.

ATI Business Overview & Revenue Model

Company Description

ATI 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 Money

ATI generates revenue through the sale of its high-performance materials, primarily focusing on aerospace and defense sectors, which represent a significant portion of its business. The company earns money by supplying these specialized materials to major OEMs (Original Equipment Manufacturers) and other manufacturers who require high-quality materials for their products. Key revenue streams include contracts for aerospace components, sales of titanium and alloy products, and services related to material processing. Additionally, ATI has established strategic partnerships with leading companies in the aerospace and energy sectors, enhancing its market position and enabling it to capitalize on growing demand for advanced materials. The company's focus on innovation, including research and development of new materials and processes, also contributes to its ability to maintain competitive pricing and secure long-term contracts.

ATI Financial Statement Overview

Summary

ATI's financial statements indicate strong revenue growth and profitability, with robust cash flow generation. The company has improved leverage management, although some leverage concerns remain. Overall, ATI is well-positioned for future growth in the metal fabrication industry.

Income Statement

ATI has demonstrated strong revenue growth with a TTM growth rate of 1.01%, indicating robust demand in the metal fabrication industry. The gross profit margin of 21.11% and net profit margin of 9.26% reflect efficient cost management and profitability. The EBIT and EBITDA margins are healthy at 14.33% and 17.03%, respectively, showcasing operational efficiency. Overall, the income statement shows a positive trajectory with consistent improvement in profitability metrics.

Balance Sheet

ATI's balance sheet shows a moderate debt-to-equity ratio of 1.08, which is an improvement from previous years, indicating better leverage management. The return on equity is strong at 23.01%, reflecting effective use of equity to generate profits. However, the equity ratio of 34.72% suggests a moderate reliance on debt financing. While the company has improved its financial stability, the balance sheet still reflects some leverage risk.

Cash Flow

ATI's cash flow statement reveals a significant free cash flow growth of 64.53%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.44 and free cash flow to net income ratio of 0.65 suggest that the company is effectively converting its earnings into cash. The cash flow metrics highlight a strong cash position, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.36B	4.17B	3.84B	2.80B	2.98B
Gross Profit	951.70M	898.20M	802.60M	714.20M	333.20M	292.80M
EBITDA	767.90M	608.90M	547.10M	599.30M	260.80M	-1.30B
Net Income	417.50M	367.80M	410.80M	130.90M	-16.20M	-1.56B
Balance Sheet
Total Assets	5.02B	5.23B	4.99B	4.45B	4.29B	4.03B
Cash, Cash Equivalents and Short-Term Investments	319.60M	721.20M	743.90M	584.00M	687.70M	645.90M
Total Debt	1.89B	1.90B	2.18B	1.75B	1.84B	1.57B
Total Liabilities	3.16B	3.28B	3.50B	3.29B	3.45B	3.39B
Stockholders Equity	1.74B	1.85B	1.37B	1.05B	685.60M	521.10M
Cash Flow
Free Cash Flow	235.40M	168.10M	-114.80M	94.00M	-136.50M	30.40M
Operating Cash Flow	473.90M	407.20M	85.90M	224.90M	16.10M	166.90M
Investing Cash Flow	-161.70M	-159.60M	-193.20M	-126.70M	-77.30M	-128.70M
Financing Cash Flow	-432.30M	-260.40M	267.20M	-201.90M	103.00M	116.90M

ATI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATI, the sentiment is Negative. The current price of 76.14 is above the 20-day moving average (MA) of 75.34, below the 50-day MA of 81.30, and above the 200-day MA of 66.85, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATI.

ATI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	81 Outperform	$10.94B	15.69	25.98%	0.96%	19.42%	30.15%
AZZ	80 Outperform	$3.52B	13.60	23.85%	0.61%	1.70%	684.20%
ATI	75 Outperform	$10.49B	26.32	26.95%	―	6.64%	3.23%
CRS	73 Outperform	$12.12B	32.81	21.37%	0.33%	4.25%	100.21%
ESAB	70 Neutral	$6.86B	27.03	14.81%	0.31%	-1.06%	1.56%
WOR	69 Neutral	$3.26B	33.74	10.52%	1.07%	-60.43%	-14.19%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%

ATI Corporate Events

ATI Secures New Credit Agreement with Major Banks

On June 13, 2025, ATI Inc. and its subsidiaries entered into a Second Amended and Restated Credit Agreement with several financial institutions, including PNC Bank and Bank of America. This agreement, which extends through June 13, 2030, includes a $200 million term loan and a $600 million revolving credit facility. It allows for additional borrowing options and is secured by the company’s accounts receivable and inventory. The agreement outlines specific financial covenants and conditions under which the company must operate, including maintaining a fixed charge coverage ratio and minimum liquidity.