ATI Physical Therapy (ATIP) AI Stock Analysis

• Market Cap: $4.35M
• Dividend Yield: N/A
• Average Volume (3M): 3.40K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.41
• Revenue Growth: 7.73%
• EPS Growth: 36.23%
• Country: US
• Employees: 6,300
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Care Facilities
• EPS (TTM): -3.17
• Shares Outstanding: 4,411,499
• 10 Day Avg. Volume: 5,997
• 30 Day Avg. Volume: 3,401
• PEG Ratio: <0.01
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.66
• Enterprise Value/Market Cap: 178.52
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 7.34
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.00 ▲(16.28%Upside)

ATI Physical Therapy's overall stock score is significantly impacted by weak financial performance, with declining revenues and losses being major concerns. The technical analysis indicates a bearish trend, further affecting the stock's attractiveness. The negative P/E ratio and lack of dividend yield highlight valuation concerns. No additional insights from earnings calls or corporate events were available to influence the score.

ATI Physical Therapy Business Overview & Revenue Model

Company Description

ATI Physical Therapy, Inc. operates as an outpatient physical therapy provider that specializes in outpatient rehabilitation and adjacent healthcare services in the United States. It offers a range of services to its patients, including physical therapy to treat spine, shoulder, knee, and neck injuries or pain; work conditioning and work hardening; and hand therapy, aquatic therapy, functional capacity assessment, and wellness programs. It also provides ATI worksite solutions comprising injury prevention programs, work-related injury assessment services, wellness offerings, and consultations for employers; proprietary electronic medical records (EMR) integration, caseload management, and continuing education in progressive therapies; and sports medicine, including onsite sports physical therapy, clinical evaluation and diagnosis, immediate and emergency care, nutrition programs, and concussion management services. The company offers outpatient physical therapy services under the ATI Physical Therapy name. As of December 31, 2021, it had 910 owned and 20 managed clinics. ATI Physical Therapy, Inc. was founded in 1996 and is based in Bolingbrook, Illinois.

How the Company Makes Money

ATI Physical Therapy generates revenue primarily through the provision of outpatient physical therapy services. The company earns money from patient visits, with payments received from a mix of private health insurance, government programs such as Medicare and Medicaid, and out-of-pocket payments by patients. Key revenue streams include assessments, treatment sessions, and therapeutic programs. Additionally, ATI Physical Therapy may collaborate with healthcare providers, corporate wellness programs, and sports teams to offer specialized services, contributing to its earnings.

ATI Physical Therapy Financial Statement Overview

Summary

ATI Physical Therapy is facing significant financial challenges, with declining revenues and persistent losses impacting profitability and cash flow. The balance sheet reflects high leverage and negative equity, posing risks to financial stability. Despite some improvements in EBIT and EBITDA margins, the company remains under pressure to achieve sustainable profitability and positive cash flow.

Income Statement

ATI Physical Therapy has faced declining revenues and profitability over recent years. The gross profit margin is strong in 2024, but the net profit margin remains negative, indicating ongoing challenges with profitability. The revenue growth rate year-over-year is negative, reflecting a decrease in revenue. The EBIT and EBITDA margins have seen some improvement in the latest year, but they remain low compared to industry standards.

Balance Sheet

The company has a negative equity position, which is a significant concern, reflecting a high level of liabilities in relation to assets. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt suggests significant leverage risks. The ROE is also negative due to consistent net losses, indicating challenges in generating returns for shareholders.

Cash Flow

ATI Physical Therapy's cash flow position is concerning, with negative operating and free cash flows indicating difficulties in generating cash organically. The free cash flow growth rate is negative, showing a decline in cash generation capabilities. The operating cash flow to net income and free cash flow to net income ratios are unfavorable, highlighting the company's struggles to convert income into positive cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
753.06M	699.02M	635.67M	627.87M	592.25M
	Gross Profit
103.48M	96.80M	75.12M	110.44M	119.64M
	EBIT
2.28M	-27.52M	-56.80M	-32.01M	90.09M
	EBITDA
2.28M	34.94M	-407.46M	-713.05M	174.31M
	Net Income Common Stockholders
-58.30M	-69.80M	-493.05M	-782.03M	-298.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.08M	36.80M	83.14M	48.62M	142.13M
	Total Assets
958.12M	1.00B	1.08B	1.56B	2.61B
	Total Debt
766.37M	750.18M	797.70M	852.00M	1.31B
	Net Debt
727.29M	713.38M	714.56M	803.38M	1.16B
	Total Liabilities
1.13B	878.74M	1.03B	1.05B	1.71B
	Stockholders Equity
-176.34M	119.39M	43.96M	504.42M	884.03M
Cash Flow		Free Cash Flow
-34.02M	-29.69M	-93.66M	-84.07M	116.47M
	Operating Cash Flow
-19.17M	-12.37M	-65.51M	-42.10M	138.60M
	Investing Cash Flow
-14.25M	-17.37M	-28.05M	-39.89M	-21.81M
	Financing Cash Flow
35.70M	-16.61M	128.08M	-11.52M	-12.97M

ATI Physical Therapy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATIP, the sentiment is Positive. The current price of 0.86 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 0.91, and below the 200-day MA of 2.48, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATIP.

ATI Physical Therapy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USPH	70 Outperform	$1.20B	36.35	6.72%	2.28%	14.30%	76.89%
JYNT	57 Neutral	$191.44M	―	-27.25%	―	-26.14%	23.04%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
MODV	48 Neutral	$46.79M	―	-951.52%	―	-0.70%	-2.38%
AMN	45 Neutral	$843.03M	18.62	-21.08%	―	-18.13%	-215.78%
CCM	44 Neutral	$30.18M	―	14.03%	―	-29.82%	-2.57%
ATIP	41 Neutral	$4.35M	―	-61.61%	―	7.73%	36.23%

ATI Physical Therapy Corporate Events

ATI Physical Therapy Secures $26M Convertible Note Financing

On March 3, 2025, ATI Physical Therapy closed a $26 million second lien PIK convertible note financing, maturing in 2028 with an 8% interest rate. This financing aims to strengthen ATI’s financial foundation and support its strategic vision, while significant stockholders hold substantial voting power, potentially facilitating a short-form merger.