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

• Market Cap: $3.08B
• Dividend Yield: 0.54%
• Average Volume (3M): 735.31K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.21
• Revenue Growth: 1.43%
• EPS Growth: 12.88%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.63
• Shares Outstanding: 82,663,925
• 10 Day Avg. Volume: 864,636
• 30 Day Avg. Volume: 735,306
• PEG Ratio: -0.56
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.56
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 1.60
• 1Y Price Target: $40.20
• Price Target Upside: 7.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $40.00 ▲(7.12%Upside)

Atmus Filtration Technologies presents a moderately strong investment case. Key strengths include solid financial performance and reasonable valuation, despite high leverage risks. The technical indicators are neutral, and the earnings call indicated resilience amidst market challenges. Overall, the stock offers a balanced risk-reward opportunity.

Positive Factors

Operational Execution

Operational execution in the 18 months since IPO is building credibility for management.

Revenue Growth

ATMU continues to beat guidance and expectations despite a market downcycle, driving year-over-year sales growth.

Valuation

ATMU started the year at a ~30% discount to DCI, which has narrowed to ~10%, indicating strong relative value expansion.

Negative Factors

First-Fit Market Challenges

First-fit headwinds are getting tougher with volumes expected to be down mid-teens in the fourth quarter and remain challenging in the first half of the following year.

Market Conditions

Both the Aftermarket and First Fit markets are in a synchronized downturn, which is atypical compared to historical trends.

Tariff Risk

Tariff considerations present overhang risk on uncertainty heading into the transition to a Trump administration, with about 30% of revenue from products made in Mexico.

Atmus Filtration Technologies, Inc. Business Overview & Revenue Model

Company Description

Atmus Filtration Technologies, Inc. (ATMU) is a company that specializes in the development and production of high-performance filtration solutions. The company operates within the industrial and automotive sectors, providing essential filtration technologies that enhance the efficiency and sustainability of engines and equipment. Their core products include air, fuel, hydraulic, and lube filtration products, which are critical in maintaining the performance and longevity of engines across various applications.

How the Company Makes Money

Atmus Filtration Technologies, Inc. generates revenue through the sale of its filtration products to original equipment manufacturers (OEMs) and aftermarket customers. The company's key revenue streams include direct sales of filtration systems and components tailored for specific industrial applications and automotive engines. Additionally, Atmus engages in partnerships with major manufacturers to integrate their filtration solutions into new engine designs, which ensures a consistent demand for their products. Aftermarket sales provide a steady stream of revenue as customers require regular replacements and upgrades to maintain optimal engine performance. Furthermore, the company's ongoing investment in research and development allows it to innovate and offer cutting-edge filtration technologies, thereby sustaining its competitive edge and market share.

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	1.65B	1.67B	1.63B	1.56B	1.44B	1.23B
Gross Profit	460.50M	462.10M	443.50M	361.40M	350.50M	309.40M
EBITDA	278.40M	266.20M	273.70M	234.30M	239.60M	221.70M
Net Income	184.80M	185.60M	171.30M	128.00M	170.10M	142.80M
Balance Sheet
Total Assets	1.23B	1.19B	1.09B	879.40M	848.30M	786.90M
Cash, Cash Equivalents and Short-Term Investments	183.30M	184.30M	168.00M	-9.40M	-9.80M	17.70M
Total Debt	588.80M	631.60M	625.90M	9.40M	9.80M	20.20M
Total Liabilities	962.80M	962.90M	1.01B	429.90M	411.10M	339.30M
Stockholders Equity	265.30M	227.40M	80.70M	449.50M	437.20M	447.60M
Cash Flow
Free Cash Flow	91.90M	56.80M	143.20M	143.60M	170.40M	186.60M
Operating Cash Flow	142.30M	105.40M	189.00M	177.00M	202.30M	213.10M
Investing Cash Flow	-50.40M	-48.60M	-45.80M	-33.40M	-31.90M	-26.50M
Financing Cash Flow	-53.70M	-35.80M	24.80M	-143.60M	-170.40M	-186.60M

Atmus Filtration Technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.34
• 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 ATMU, the sentiment is Positive. The current price of 37.34 is above the 20-day moving average (MA) of 36.15, above the 50-day MA of 36.19, and below the 200-day MA of 38.37, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, 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	80 Outperform	$1.03B	22.48	18.34%	―	8.89%	278.44%
FSS	78 Outperform	$6.47B	31.06	18.78%	0.51%	7.85%	15.78%
ZWS	76 Outperform	$6.29B	38.25	10.49%	0.96%	3.22%	38.39%
ATMU	72 Outperform	$3.08B	16.86	95.48%	0.54%	1.43%	12.88%
ERII	64 Neutral	$701.95M	35.35	10.35%	―	10.93%	6.99%
Sector *	58 Neutral	$1.34B	4.20	-2.93%	7.41%	3.67%	-51.13%
PCT	38 Underperform	$2.34B	―	-67.71%	―	―	-180.10%

Atmus Filtration Technologies, Inc. Corporate Events

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.

The most recent analyst rating on (ATMU) stock is a Buy with a $39.00 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 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.

The most recent analyst rating on (ATMU) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

Atmus Filtration Appoints New Chief Legal Officer

On May 8, 2025, Atmus Filtration Technologies Inc. appointed Laura Heltebran as Senior Vice President, Chief Legal Officer & Corporate Secretary, effective May 13, 2025. Heltebran, who previously held significant legal positions at Wheels Up and Hilton Worldwide, will report to CEO Steph Disher and join the Atmus Leadership Team. Her appointment is expected to contribute to the company’s continued growth and success, leveraging her extensive legal experience and leadership skills.

The most recent analyst rating on (ATMU) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.