Atmus Filtration Technologies, Inc. (ATMU) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: 0.39%
• Average Volume (3M): 403.85K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.15
• Revenue Growth: 3.72%
• EPS Growth: 11.71%
• Country: US
• Employees: 4,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.69
• Shares Outstanding: 81,507,835
• 10 Day Avg. Volume: 458,407
• 30 Day Avg. Volume: 403,848
• PEG Ratio: 2.13
• Price to Book (P/B): 14.33
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 57.39
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 10.93
• Enterprise Value/Ebitda: 17.00
• 1Y Price Target: $60.00
• Price Target Upside: 3.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.81
• Revenue Forecast (FY): $1.90B

• Rating: 71 Outperform
• Price Target: $60.00 ▲(3.50% Upside)

The score is driven primarily by solid underlying financial execution (improving margins and positive free cash flow) and supportive technical momentum, reinforced by upbeat guidance and ongoing shareholder returns. Offsetting these positives are elevated leverage (and modest debt coverage) plus a middling valuation with a low dividend yield; the debt-funded acquisition adds execution and balance-sheet risk.

Positive Factors

Improving profitability & margins

ATMU's recent step-up in margins and strong adjusted EBITDA demonstrates durable improvement in earnings conversion, increasing internal funding capacity for capex, R&D and shareholder returns. Higher margins also improve resilience to cyclical downturns and support long-term profitability.

Positive free cash flow generation

Consistent and improving free cash flow provides lasting financial flexibility: it funds buybacks/dividends, supports M&A and reduces reliance on external financing. Solid FCF underpins capital allocation choices and cushions the balance sheet across economic cycles.

Strategic industrial expansion

The Koch Filter acquisition establishes an Industrial Solutions segment, diversifying revenue into HVAC, data centers and power generation. This expands addressable markets, enables cross-selling and reduces pure-transportation exposure, strengthening long-term growth optionality.

Negative Factors

Elevated leverage

Material leverage versus history constrains financial flexibility and raises refinancing and interest coverage vulnerability. Higher debt amplifies downside risk if growth or margins weaken, limiting investment capacity and increasing the probability that cash flow volatility pressures liquidity.

Acquisition financed with borrowings

Financing the Koch acquisition via borrowings and an amended credit facility tightens covenants and raises leverage, increasing execution risk. Tighter lender parameters reduce strategic flexibility during integration and make the company more sensitive to cash flow shocks.

Moderating growth & margin sustainability risk

Top-line growth has moderated from earlier rates while margins have jumped recently, suggesting some gains may be cyclical (pricing, FX, cost tailwinds). If these tailwinds reverse, revenue deceleration combined with mean-reverting margins could compress free cash flow and returns.

Atmus Filtration Technologies, Inc. Business Overview & Revenue Model

Company Description

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. It offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, and coolants, as well as fuel additives. The company's products are used in on-highway and off-highway commercial vehicles; and agriculture, construction, mining, and power generation vehicles and equipment. It serves original equipment manufacturers, dealers/distributors, and end-users. The company was founded in 1958 and is headquartered in Nashville, Tennessee. Atmus Filtration Technologies Inc. operates as a subsidiary of Cummins Inc.

How the Company Makes Money

Atmus Filtration Technologies generates revenue through the sale of its filtration products across various markets, including automotive, industrial, and commercial applications. The company's revenue model is primarily based on direct sales to OEMs and distributors, as well as aftermarket sales to end-users. Key revenue streams include the sale of diesel particulate filters, air filters, and oil filters, which are essential for maintaining engine performance and compliance with environmental regulations. Additionally, ATMU benefits from strategic partnerships with leading automotive manufacturers and suppliers, allowing it to leverage its technology and expand its market reach. The company's commitment to innovation and quality also contributes to customer loyalty and repeat business, further enhancing its earnings potential.

Atmus Filtration Technologies, Inc. Financial Statement Overview

Summary

Operational performance is strong (improving profitability and positive, improving free cash flow), but the balance sheet is a key constraint with elevated leverage (debt-to-equity ~1.72x) and relatively low operating cash flow coverage of debt, which reduces flexibility if growth slows or margins normalize.

Income Statement

ATMU shows steady top-line expansion, with revenue rising from $1.23B (2020) to $1.72B in TTM (Trailing-Twelve-Months). Profitability has also improved, with net margin at ~20.6% in TTM versus ~11.1% in 2024 and ~10.5% in 2023, signaling stronger earnings conversion recently. The key weakness is that growth is moderating (TTM revenue growth ~2.6% vs higher growth rates earlier in the cycle), and the sharp step-up in margins versus prior years may prove hard to sustain if pricing/cost tailwinds normalize.

Balance Sheet

The balance sheet is the main mixed area. Leverage is elevated: debt-to-equity is ~1.72x in TTM (Trailing-Twelve-Months) and was even higher in 2024 (~2.78x) and 2023 (~7.76x), indicating a heavier debt load relative to equity than earlier years (near-zero leverage in 2020–2022). A positive offset is that equity has rebuilt meaningfully (from ~$80.7M in 2023 to ~$336.7M in TTM), improving the capital cushion. Returns on equity are very high (TTM ~0.70), but given the leverage history, the risk is that ROE is partly amplified by a thinner equity base and higher debt.

Cash Flow

Cash generation is solid but not consistently strong relative to accounting earnings. Free cash flow is positive and improving in TTM (Trailing-Twelve-Months) ($127.6M, up ~12.9%), and free cash flow remains a healthy portion of net income (TTM ~0.73). However, operating cash flow covers a relatively low share of debt (TTM ~0.42; 2024 ~0.31), suggesting debt paydown capacity could be pressured if conditions weaken. Cash flow also shows some volatility (notably weaker free cash flow in 2024 versus 2023).

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.67B	1.63B	1.56B	1.44B	1.23B
Gross Profit	493.30M	474.20M	432.70M	359.20M	349.30M	309.40M
EBITDA	317.20M	286.00M	273.70M	197.50M	205.40M	221.70M
Net Income	199.50M	185.60M	171.30M	170.40M	170.10M	142.80M
Balance Sheet
Total Assets	1.34B	1.19B	1.09B	867.40M	848.30M	786.90M
Cash, Cash Equivalents and Short-Term Investments	218.30M	184.30M	168.00M	0.00	0.00	17.70M
Total Debt	618.20M	631.60M	625.90M	32.60M	9.80M	28.50M
Total Liabilities	1.00B	962.90M	1.01B	411.80M	411.10M	339.30M
Stockholders Equity	336.70M	227.40M	80.70M	455.60M	437.20M	447.60M
Cash Flow
Free Cash Flow	127.60M	56.80M	143.20M	128.20M	176.50M	186.60M
Operating Cash Flow	175.20M	105.40M	189.00M	165.70M	209.90M	213.10M
Investing Cash Flow	-47.60M	-48.60M	-45.80M	-37.50M	-33.40M	-26.50M
Financing Cash Flow	-105.90M	-35.80M	24.80M	-128.20M	-176.50M	-186.60M

Atmus Filtration Technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.97
• 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 ATMU, the sentiment is Positive. The current price of 57.97 is above the 20-day moving average (MA) of 56.18, above the 50-day MA of 53.48, and above the 200-day MA of 43.91, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 73.13 is Negative, neither overbought nor oversold. The STOCH value of 94.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATMU.

Atmus Filtration Technologies, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CECO	75 Outperform	$2.40B	47.64	18.85%	―	29.86%	331.33%
ATMU	71 Outperform	$4.73B	24.14	71.52%	0.39%	3.72%	11.71%
ERII	68 Neutral	$772.86M	43.93	9.41%	―	0.10%	1.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FTEK	54 Neutral	$42.26M	-14.39	-7.10%	―	-5.66%	-397.46%
ARQ	45 Neutral	$151.99M	-38.08	-1.80%	―	7.20%	-2951.61%
LIQT	45 Neutral	$18.29M	-1.71	-73.79%	―	10.97%	44.99%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Completes Koch Filter Deal, Expands Industrial Platform

On January 7, 2026, Atmus Filtration Technologies closed its $450 million cash acquisition of Koch Filter Corporation from Air Distribution Technologies, Inc., establishing an industrial air filtration platform that extends Atmus’ portfolio into high-growth segments such as commercial and industrial HVAC, data centers and power generation. The deal, which also created a new Industrial Solutions segment to house the Koch Filter business under existing Koch leadership, was financed through a combination of cash on hand and borrowings under an amended and restated $1.5 billion credit facility that replaced Atmus’ prior arrangement with a $1 billion term loan and a $500 million revolving credit line, potentially strengthening the company’s scale and positioning in industrial filtration markets while tightening financial covenants and leverage parameters for lenders and other stakeholders.

The most recent analyst rating on (ATMU) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

Atmus Filtration Acquires Koch Filter for $450 Million

On November 21, 2025, Atmus Filtration Technologies Inc. entered into a stock purchase agreement to acquire Koch Filter Corporation from Air Distribution Technologies, Inc. for $450 million. This acquisition aims to expand Atmus’ presence in the industrial air filtration market, leveraging Koch Filter’s established customer base in sectors like HVAC, data centers, and power generation. The transaction is expected to close in the first quarter of 2026 and is anticipated to enhance Atmus’ financial performance, contributing to adjusted EPS and EBITDA margin growth by 2026.

The most recent analyst rating on (ATMU) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

Atmus Filtration Declares Quarterly Cash Dividend

On November 12, 2025, Atmus Filtration Technologies Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.055 per common share. This dividend is payable on December 10, 2025, to shareholders of record as of November 25, 2025. This announcement reflects Atmus’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to investors within the filtration industry.

The most recent analyst rating on (ATMU) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.