Atkore International Group (ATKR) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 1.87%
• Average Volume (3M): 372.27K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.40
• Revenue Growth: -12.02%
• EPS Growth: -67.69%
• Country: US
• Employees: 5,264
• Sector: Industrials
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.04
• Shares Outstanding: 33,651,608
• 10 Day Avg. Volume: 288,845
• 30 Day Avg. Volume: 372,270
• 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: 1.62
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $74.75
• Price Target Upside: 10.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $76.00 ▲(12.79%Upside)

Atkore's overall stock score of 73 reflects stable financial health and attractive valuation, balanced by the mixed results of the earnings call. Challenges include declining profitability margins and market uncertainties. However, strong cash flow generation and strategic initiatives provide potential for recovery and shareholder value.

Atkore International Group Business Overview & Revenue Model

Company Description

Atkore International Group (ATKR) is a leading manufacturer and distributor of electrical raceway products and mechanical products and solutions. The company operates in the industrial, utility, and commercial construction sectors, providing a wide range of products including conduits, cables, metal framing, and related accessories. Atkore's comprehensive portfolio is designed to support electrical infrastructure needs and enhance the safety and efficiency of construction projects.

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
	EBIT
286.63M	624.78M	893.49M	1.23B	798.95M	239.56M
	EBITDA
354.30M	774.03M	1.02B	1.33B	905.97M	331.33M
	Net Income Common Stockholders
192.81M	472.87M	689.90M	913.43M	587.86M	152.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
330.38M	351.38M	388.11M	388.75M	576.29M	284.47M
	Total Assets
2.86B	3.02B	2.94B	2.60B	2.21B	1.56B
	Total Debt
940.88M	951.20M	884.43M	832.30M	800.41M	843.66M
	Net Debt
610.50M	599.82M	496.32M	443.55M	224.12M	559.19M
	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: Neutral
• Last Price: 67.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATKR, the sentiment is Neutral. The current price of 67.38 is below the 20-day moving average (MA) of 67.49, above the 50-day MA of 63.82, and below the 200-day MA of 76.39, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 72.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATKR.

Atkore International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVT	83 Outperform	$11.19B	19.41	7.63%	1.14%	-5.12%	1.69%
POWL	80 Outperform	$2.24B	13.06	37.08%	0.58%	27.43%	67.93%
PLPC	78 Outperform	$755.76M	19.41	9.19%	0.53%	-4.36%	-24.20%
AEIS	74 Outperform	$4.78B	65.58	6.36%	0.32%	0.06%	-28.32%
ATKR	73 Outperform	$2.38B	13.60	12.73%	1.87%	-12.02%	-67.69%
ENS	67 Neutral	$3.51B	9.97	19.82%	1.07%	-2.94%	22.32%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

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.