Atkore International Group (ATKR) AI Stock Analysis

• Market Cap: $2.53B
• Dividend Yield: 1.75%
• Average Volume (3M): 406.00K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.42
• Revenue Growth: -12.02%
• EPS Growth: -67.69%
• Country: US
• Employees: 5,264
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.04
• Shares Outstanding: 33,651,608
• 10 Day Avg. Volume: 538,218
• 30 Day Avg. Volume: 406,002
• PEG Ratio: 0.06
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.22
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $74.75
• Price Target Upside: -0.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $77.00 ▲(2.24%Upside)

Atkore's overall stock score reflects a balanced view of its financial stability, technical indicators, and valuation attractiveness. While financial performance is under pressure due to declining revenues and profitability, the company maintains strong cash flows and a solid balance sheet. Technical analysis suggests a slight upward momentum, and valuation metrics indicate potential undervaluation. The earnings call and recent corporate events present mixed outcomes with both strategic advances and significant challenges.

Atkore International Group Business Overview & Revenue Model

Company Description

Atkore Inc. manufactures and sells electrical, safety, and infrastructure products in the United States and internationally. The company offers electrical products, including conduits cables, and installation accessories. It also provides safety and infrastructure solutions, such as metal framing, mechanical pipe, perimeter security, and cable management. The company offers its products under the Allied Tube & Conduit, AFC Cable Systems, Kaf-Tech, Heritage Plastics, Unistrut, Power-Strut, Cope, US Tray, FRE Composites, Calbond, and Calpipe brands. It serves a group of end markets, including new construction; maintenance, repair, and remodel, as well as infrastructure; diversified industrials; alternative power generation; healthcare; data centers; and government through electrical, industrial, and mechanical contractors, as well as original equipment manufacturers. The company was formerly known as Atkore International Group Inc. and changed its name to Atkore Inc. in February 2021. Atkore Inc. was founded in 1959 and is headquartered in Harvey, Illinois.

How the Company Makes Money

Atkore International Group makes money primarily through the manufacture and sale of electrical raceway and mechanical products. Its revenue model is anchored in providing essential components for electrical and mechanical systems used in construction and infrastructure projects. Key revenue streams include the sale of conduits, cables, metal framing, and cable management systems. The company benefits from strategic partnerships with distributors, contractors, and end-users who rely on Atkore's products for large-scale projects. Market demand for infrastructure development and commercial construction significantly contributes to its earnings, along with its operational efficiency and strong distribution network.

Atkore International Group Financial Statement Overview

Summary

Atkore demonstrates stable financial health with strong cash flow generation and a balanced capital structure. However, declining revenue and profitability margins pose challenges, with EBIT and EBITDA margins under pressure. Despite these challenges, manageable leverage levels and solid cash flow metrics provide a foundation for recovery.

Income Statement

Atkore's financial performance shows a decline in revenue and profitability over the TTM period. The Gross Profit Margin stands at 28.65% and the Net Profit Margin at 6.48%, both of which have decreased compared to previous years. The company has experienced a revenue contraction of 7.12% from the previous year. EBIT and EBITDA margins have also fallen to 9.64% and 11.91% respectively, indicating pressure on operating efficiencies.

Balance Sheet

Atkore's balance sheet reflects a stable financial position with a Debt-to-Equity ratio of 0.67, indicating moderate leverage. The Return on Equity (ROE) is 13.67%, showing a decent return on shareholder investments despite a decrease. The Equity Ratio of 49.33% suggests a solid capital structure, though a slight decline in equity strength is observed.

Cash Flow

The cash flow statement shows resilience with a Free Cash Flow of $324 million. Despite a decline in Free Cash Flow Growth Rate, the company maintains a robust Operating Cash Flow to Net Income Ratio of 2.41, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio has decreased to 1.68, suggesting reduced cash flow efficiency.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.97B	3.20B	3.52B	3.91B	2.93B	1.77B
Gross Profit	851.93M	1.08B	1.34B	1.64B	1.13B	491.31M
EBITDA	354.30M	774.03M	1.02B	1.33B	905.97M	331.33M
Net Income	192.81M	472.87M	689.90M	913.43M	587.86M	152.30M
Balance Sheet
Total Assets	2.86B	3.02B	2.94B	2.60B	2.21B	1.56B
Cash, Cash Equivalents and Short-Term Investments	330.38M	351.38M	388.11M	388.75M	576.29M	284.47M
Total Debt	940.88M	951.20M	884.43M	832.30M	800.41M	843.66M
Total Liabilities	1.45B	1.48B	1.47B	1.35B	1.35B	1.18B
Stockholders Equity	1.41B	1.54B	1.47B	1.25B	864.74M	378.41M
Cash Flow
Free Cash Flow	324.19M	399.17M	588.75M	651.06M	508.43M	214.99M
Operating Cash Flow	464.14M	549.03M	807.63M	786.84M	572.90M	248.76M
Investing Cash Flow	-123.39M	-154.34M	-302.15M	-442.80M	-97.96M	-27.51M
Financing Cash Flow	-376.97M	-435.28M	-506.78M	-524.21M	-184.46M	-61.18M

Atkore International Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.31
• 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 ATKR, the sentiment is Positive. The current price of 75.31 is above the 20-day moving average (MA) of 68.92, above the 50-day MA of 67.30, and above the 200-day MA of 75.04, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 72.17 is Negative, neither overbought nor oversold. The STOCH value of 87.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATKR.

Atkore International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVT	82 Outperform	$12.09B	20.97	7.63%	1.09%	-5.12%	1.69%
POWL	78 Outperform	$2.64B	15.36	37.08%	0.49%	27.43%	67.93%
PLPC	78 Outperform	$825.42M	21.20	9.19%	0.48%	-4.36%	-24.20%
AEIS	76 Outperform	$5.03B	69.03	6.36%	0.29%	0.06%	-28.32%
ATKR	74 Outperform	$2.53B	14.50	12.73%	1.75%	-12.02%	-67.69%
ENS	73 Outperform	$3.47B	10.00	19.82%	1.07%	1.00%	38.51%
Sector *	68 Neutral	£2.93B	10.19	8.40%	3.47%	2.87%	-9.95%

Atkore International Group Corporate Events

Atkore Reports Q2 2025 Loss Amid Market Challenges

Atkore Inc. reported its second quarter 2025 financial results, revealing a significant decline in net sales and income compared to the previous year. The company faced a net loss of $50.1 million, attributed to decreased selling prices and asset impairment charges, but maintained its full-year financial outlook. Despite the challenging market conditions, Atkore achieved a 5% growth in organic volume and improved productivity, highlighting the resilience of its operations and the dedication of its workforce.

Atkore International Group Announces Impairment Charge in Q2 2025

Atkore Inc. announced an impairment charge related to its high-density polyethylene (HDPE) pipe and conduit products, primarily due to emerging competing technologies and market conditions in the second quarter of 2025. Despite this, the company maintains its full-year fiscal 2025 outlook, with net sales expected between $2,850 million and $2,950 million, and has reached a new collective bargaining agreement at its Harvey, Illinois location.