ATI (ATI) AI Stock Analysis

• Market Cap: $15.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 37.5
• Beta (1Y): 1.63
• Revenue Growth: 7.75%
• EPS Growth: 6.84%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.85
• Shares Outstanding: 135,863,660
• 10 Day Avg. Volume: 2,044,738
• 30 Day Avg. Volume: 1,422,309
• 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: 0.84
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 13.24
• Enterprise Value/Ebitda: 17.06
• 1Y Price Target: $118.83
• Price Target Upside: 2.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.16
• Revenue Forecast (FY): $4.60B

• Rating: 78 Outperform
• Price Target: $114.00 ▼(-1.90% Downside)

ATI's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting robust growth in the aerospace and defense sectors. Technical analysis supports a bullish outlook, although valuation concerns due to a high P/E ratio and lack of dividend yield temper enthusiasm. Continued operational excellence and strategic financial management are key to sustaining growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for ATI's products, especially in high-value markets like aerospace and defense, supporting long-term business expansion.

Operational Excellence

Operational improvements enhance efficiency and cost management, bolstering ATI's competitive edge and supporting sustainable margin growth.

Leadership Transition

The appointment of a new CFO with operational depth ensures strategic continuity and financial discipline, crucial for long-term stability and growth.

Negative Factors

Moderation in Defense Shipments

A slowdown in defense shipments could impact short-term revenue, highlighting potential volatility in ATI's key market segment.

Contract Restructuring Impact

Contract restructuring affecting revenue underscores the risk of dependency on large contracts, impacting financial predictability.

Debt Levels

While leverage has improved, continued reliance on debt could strain financial flexibility, affecting long-term financial health.

ATI Business Overview & Revenue Model

Company Description

ATI (Allegheny Technologies Incorporated) is a leading global manufacturer of specialty materials and complex components, primarily serving the aerospace, defense, oil and gas, and medical markets. The company operates through two main segments: High Performance Materials and Components, and Flat-Rolled Products. ATI's core products include titanium and titanium alloys, nickel-based alloys, stainless and specialty steels, and other advanced materials, which are used in a variety of critical applications requiring high performance and reliability.

How the Company Makes Money

ATI generates revenue through the sale of its specialty materials and components, focusing on high-value markets such as aerospace and defense, where demand for advanced materials is driven by technological innovation and regulatory standards. The company's revenue model is primarily based on direct sales to manufacturers and distributors in these sectors. Key revenue streams include contracts for large aerospace projects, sales of high-performance alloys, and supply agreements with major industry players. ATI also benefits from strategic partnerships with leading companies in aerospace and energy sectors, allowing it to secure long-term contracts and stabilize its revenue flow. Additionally, the company leverages its expertise in material science and engineering to offer customized solutions, further enhancing its market position and profitability.

ATI Financial Statement Overview

Summary

ATI exhibits strong financial performance with consistent revenue growth and healthy profit margins. The company has improved its leverage position, although further debt reduction could enhance financial stability. Cash flow generation has significantly improved, supporting operational and strategic initiatives. Continued focus on cost management and debt reduction will be key to sustaining this positive trajectory.

Income Statement

ATI's income statement shows strong performance with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.65%. The company maintains healthy margins, with a TTM gross profit margin of 21.43% and a net profit margin of 9.71%. The EBIT and EBITDA margins are also robust at 10.98% and 16.34%, respectively. This indicates effective cost management and operational efficiency. However, the slight decline in EBIT margin from the previous year suggests potential pressure on operating costs.

Balance Sheet

ATI's balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 1.12 in the TTM, indicating a reduction in leverage compared to previous years. The return on equity is strong at 24.80%, showcasing effective utilization of shareholder funds. However, the equity ratio stands at 34.12%, suggesting a moderate reliance on debt financing. Continued focus on reducing debt could enhance financial stability.

Cash Flow

ATI's cash flow statement demonstrates significant improvement, with a TTM free cash flow growth rate of 115.25%. The operating cash flow to net income ratio is 0.64, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.75 further supports the company's ability to generate cash. Despite these strengths, maintaining consistent cash flow growth remains crucial for future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.36B	4.17B	3.84B	2.80B	2.98B
Gross Profit	1.00B	913.50M	826.30M	714.20M	334.00M	292.80M
EBITDA	778.90M	670.70M	539.10M	678.50M	492.50M	198.40M
Net Income	444.80M	367.80M	410.80M	323.50M	184.60M	-1.57B
Balance Sheet
Total Assets	5.00B	5.23B	4.99B	4.45B	4.29B	4.03B
Cash, Cash Equivalents and Short-Term Investments	372.20M	721.20M	743.90M	584.00M	687.70M	645.90M
Total Debt	1.91B	1.90B	2.18B	1.75B	1.84B	1.57B
Total Liabilities	3.18B	3.28B	3.50B	3.29B	3.45B	3.39B
Stockholders Equity	1.71B	1.85B	1.37B	1.05B	685.60M	521.10M
Cash Flow
Free Cash Flow	506.70M	168.10M	-114.80M	94.00M	-136.50M	30.40M
Operating Cash Flow	679.40M	407.20M	85.90M	224.90M	16.10M	166.90M
Investing Cash Flow	-130.40M	-159.60M	-193.20M	-126.70M	-77.30M	-128.70M
Financing Cash Flow	-606.80M	-260.40M	267.20M	-201.90M	103.00M	116.90M

ATI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 116.21 is above the 20-day moving average (MA) of 105.05, above the 50-day MA of 98.25, and above the 200-day MA of 79.34, indicating a bullish trend. The MACD of 4.74 indicates Negative momentum. The RSI at 78.06 is Negative, neither overbought nor oversold. The STOCH value of 95.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATI.

ATI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	79 Outperform	$3.28B	10.65	27.28%	0.68%	1.55%	701.41%
ATI	78 Outperform	$15.73B	37.48	25.43%	―	7.75%	6.84%
MLI	78 Outperform	$13.03B	17.54	26.06%	0.85%	15.71%	29.60%
CRS	75 Outperform	$16.56B	40.78	23.16%	0.24%	2.40%	81.54%
WOR	72 Outperform	$2.62B	24.89	11.31%	1.27%	7.43%	148.83%
ESAB	69 Neutral	$6.97B	28.87	13.86%	0.33%	1.19%	-7.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ATI Corporate Events

ATI Announces New CFO Amid Leadership Changes

On December 4, 2025, ATI Inc. announced the appointment of J. Robert Foster as the new Senior Vice President, Finance and Chief Financial Officer, effective January 1, 2026. Foster, who has been with ATI since 2012, brings extensive experience in finance and operations, having previously served as President of the Specialty Alloys & Components business unit. He succeeds Donald P. Newman, who will transition to a Strategic Advisor role before retiring on March 1, 2026. Additionally, Chief Human Resources Officer Tina K. Busch resigned on December 5, 2025, and will provide consulting services during the transition period. These leadership changes are part of ATI’s strategic succession planning to ensure continued growth and operational excellence.

ATI Establishes $125 Million Securitization Facility

On September 19, 2025, ATI Specialty Materials, LLC, a subsidiary of ATI Inc., established a three-year, $125 million accounts receivable securitization facility. This move involves selling or contributing receivables to a special purpose entity, which can borrow up to $125 million. As of September 25, 2025, $80 million was outstanding under the facility, which is expected to enhance ATI’s financial operations and flexibility.

ATI Announces CFO Retirement and Board Expansion

On September 9, 2025, ATI Inc. announced the upcoming retirement of Donald P. Newman, its Executive Vice President, Finance and Chief Financial Officer, effective March 1, 2026. To ensure a smooth transition, Newman will provide consulting services for ten months post-retirement. Concurrently, ATI’s Board of Directors expanded from ten to twelve members, appointing Elizabeth Lund and Jean Lydon-Rodgers as independent directors, effective November 1, 2025. Both bring extensive experience in aerospace and defense, enhancing the board’s expertise. These changes reflect ATI’s strategic focus on leadership continuity and strengthening its market position.