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

• Market Cap: $3.79B
• Dividend Yield: 0.44%
• Average Volume (3M): 816.13K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.24
• Revenue Growth: 1.53%
• EPS Growth: 8.93%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.75
• Shares Outstanding: 82,151,985
• 10 Day Avg. Volume: 663,218
• 30 Day Avg. Volume: 816,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 11.72
• 1Y Price Target: $45.60
• Price Target Upside: -1.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: $50.00 ▲(8.51% Upside)

Atmus Filtration Technologies scores well due to strong financial performance and technical indicators. The company's robust cash flow and profitability metrics, combined with positive earnings call highlights, contribute significantly to the score. While the valuation is moderate, recent dividend increases and corporate events add to the stock's appeal. Challenges in the first-fit market and high leverage are risks to monitor.

Positive Factors

Mergers and Acquisitions

An entry into industrial filtration through M&A could be the next catalyst for a valuation re-rating.

Negative Factors

Market Conditions

There are no near-term catalysts for further re-rating of the shares, given weak freight and truck end markets.

Regulatory Uncertainty

The lack of clarity on the timing of the ongoing Section 232 investigation for commercial vehicles affects the stock.

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, Inc. generates revenue through the sale of its filtration products, which are used in a variety of applications across the automotive and industrial sectors. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs), aftermarket sales, and partnerships with distributors who supply their products globally. Atmus also benefits from long-term contracts and recurring sales due to the consumable nature of its products, which require regular replacement to ensure optimal performance. Additionally, the company's focus on innovation and quality helps in securing strategic partnerships and maintaining a competitive edge in the market.

Atmus Filtration Technologies, Inc. Financial Statement Overview

Summary

Atmus Filtration Technologies demonstrates a strong financial position with solid profitability and cash flow metrics. While the income statement shows robust margins, the balance sheet's high leverage poses potential risks. Nevertheless, the company’s impressive cash flow performance mitigates some concerns, indicating healthy cash generation and financial resilience.

Income Statement

Atmus Filtration Technologies shows a solid performance with improving profitability metrics. The gross profit margin for TTM is 27.98%, indicating efficient cost management. The net profit margin stands at 11.23%, reflecting strong bottom-line control. Revenue growth, however, has seen slight fluctuations, with a TTM decline of approximately 1.42%, but a previous annual growth of 2.55%. The EBIT margin at 15.73% and EBITDA margin at 16.92% are indicative of robust operational efficiency.

Balance Sheet

The balance sheet depicts a moderate financial position, with a significant debt-to-equity ratio of 2.22, suggesting high leverage which could pose risks. However, the return on equity (ROE) is strong at 69.63%, showing excellent returns on shareholders' investments. The equity ratio is relatively low at 21.60%, indicating less reliance on equity financing.

Cash Flow

The cash flow statement presents a favorable outlook with a free cash flow growth rate of 61.62%, highlighting strong cash generation capabilities. Operating cash flow to net income ratio of 0.77 and a free cash flow to net income ratio of 0.50 reflect efficient cash conversion processes. These metrics underscore the company’s ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.67B	1.63B	1.56B	1.44B	1.23B
Gross Profit	472.70M	474.20M	443.50M	359.20M	350.50M	309.40M
EBITDA	294.80M	300.20M	273.70M	234.30M	239.60M	221.70M
Net Income	188.50M	185.60M	171.30M	170.40M	170.10M	142.80M
Balance Sheet
Total Assets	1.31B	1.19B	1.09B	879.40M	848.30M	786.90M
Cash, Cash Equivalents and Short-Term Investments	190.80M	184.30M	168.00M	-9.40M	-9.80M	17.70M
Total Debt	585.00M	631.60M	625.90M	33.30M	9.80M	20.20M
Total Liabilities	997.70M	962.90M	1.01B	429.90M	411.10M	339.30M
Stockholders Equity	316.30M	227.40M	80.70M	449.50M	437.20M	447.60M
Cash Flow
Free Cash Flow	113.00M	56.80M	143.20M	143.60M	170.40M	186.60M
Operating Cash Flow	163.80M	105.40M	189.00M	177.00M	202.30M	213.10M
Investing Cash Flow	-50.80M	-48.60M	-45.80M	-33.40M	-31.90M	-26.50M
Financing Cash Flow	-81.70M	-35.80M	24.80M	-143.60M	-170.40M	-186.60M

Atmus Filtration Technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.08
• 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 46.08 is above the 20-day moving average (MA) of 44.01, above the 50-day MA of 40.30, and above the 200-day MA of 38.77, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 88.83 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
ATMU	79 Outperform	$3.79B	20.36	76.25%	0.44%	1.53%	8.93%
FSS	78 Outperform	$7.59B	34.75	18.77%	0.43%	9.09%	9.64%
CECO	76 Outperform	$1.67B	32.95	19.67%	―	15.74%	294.80%
ERII	74 Outperform	$767.12M	34.89	11.95%	―	6.19%	15.04%
ZWS	70 Outperform	$7.71B	45.48	10.81%	0.78%	4.74%	30.64%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
PCT	38 Underperform	$2.41B	―	-148.91%	―	―	-79.12%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Filtration Increases Quarterly Dividend by 10%

On August 13, 2025, Atmus Filtration Technologies Inc. announced a 10% increase in its quarterly cash dividend to $0.055 per common share, payable on September 10, 2025. This decision reflects the company’s commitment to providing value to its shareholders and may enhance its attractiveness to investors.

Atmus Filtration Holds Annual Stockholders Meeting

Atmus Filtration Technologies, Inc. held its Annual Meeting of Stockholders on May 20, 2025. During the meeting, stockholders elected directors to the board, approved executive compensation, ratified the appointment of PricewaterhouseCoopers LLC as the independent auditor, and passed several amendments to the Certificate of Incorporation, including declassifying the board, eliminating supermajority voting provisions, and removing legacy parent provisions.

Atmus Filtration Declares Quarterly Cash Dividend

On May 21, 2025, Atmus Filtration Technologies Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.05 per common share. This dividend is payable on June 18, 2025, to shareholders of record as of June 3, 2025, reflecting the company’s commitment to returning value to its shareholders.