ATI (ATI) AI Stock Analysis

• Market Cap: $9.93B
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.63
• Revenue Growth: 6.64%
• EPS Growth: 3.23%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 76
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.74
• Shares Outstanding: 137,832,140
• 10 Day Avg. Volume: 1,858,276
• 30 Day Avg. Volume: 2,086,707
• 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: 1.42
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 14.82
• Enterprise Value/Ebitda: 18.37
• 1Y Price Target: $102.43
• Price Target Upside: 38.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $86.00 ▲(16.67% Upside)

ATI's overall score is driven by its strong financial performance and positive earnings call outcomes, despite facing valuation challenges. The company's robust growth and strategic partnerships in the aerospace sector are significant strengths, while technical analysis suggests caution due to potential medium-term resistance.

Positive Factors

Capacity Expansion

ATI's second phase of titanium capacity expansion is progressing well and is expected to contribute significantly to sales once operational.

Contract Renewals

ATI renewed a contract with Boeing that includes improved pricing and cost protection.

Jet Engine Sales

ATI's jet engine sales are expected to rise significantly, indicating strong demand in this sector.

Negative Factors

Defense Sales

The cancellation of GD's M10 Booker project is seen as a modest negative impact on defense sales.

IGT Business

ATI's IGT business has come under demand pressure, given its skew to Chinese customers.

Titanium Airframe Sales

ATI's titanium airframe sales remain flat as Boeing's de-stocking continues, impacting revenue expectations.

ATI Business Overview & Revenue Model

Company Description

ATI (ATI) is a leading provider of advanced materials, primarily focused on the production of high-performance titanium and specialty alloys for various industries, including aerospace, defense, and energy. The company operates through two main segments: the Aerospace and Defense segment, which provides products for aircraft and military applications, and the Energy segment, which supplies materials for oil and gas industries. ATI's core products include titanium mill products, stainless steel, and nickel-based alloys, which are essential for high-stress applications requiring exceptional strength and resistance to corrosion.

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 demonstrates solid financial health with consistent revenue growth, improved profitability margins, and strong cash flow generation. The stable Gross Profit Margin and significant Net Profit Margin improvement highlight efficient operations. The company's balanced capital structure and effective equity use further reinforce its financial strength.

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.

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.

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.

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	307.50M	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	-174.00M	-260.40M	267.20M	-201.90M	103.00M	116.90M

ATI Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATI, the sentiment is Neutral. The current price of 73.71 is below the 20-day moving average (MA) of 77.03, below the 50-day MA of 83.49, and above the 200-day MA of 65.50, indicating a neutral trend. The MACD of -3.68 indicates Positive momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 30.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATI.

ATI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	81 Outperform	$10.25B	14.70	25.98%	0.98%	19.42%	30.15%
AZZ	80 Outperform	$3.36B	12.97	23.85%	0.61%	1.70%	684.20%
WOR	74 Outperform	$3.27B	34.21	10.52%	1.05%	-60.43%	-14.19%
ATI	73 Outperform	$9.93B	24.66	26.95%	―	6.64%	3.23%
ESAB	70 Neutral	$6.88B	27.09	14.81%	0.29%	-1.06%	1.56%
CRS	69 Neutral	$12.04B	32.60	21.37%	0.33%	4.25%	100.21%
Sector *	58 Neutral	HK$14.01B	4.01	-3.70%	5.60%	2.26%	-61.32%

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.

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.

ATI Updates Bylaws Following SEC Rule Alignment

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.