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

• Market Cap: $4.37B
• Dividend Yield: 0.39%
• Average Volume (3M): 776.51K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.13
• 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: 696,586
• 30 Day Avg. Volume: 776,510
• 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: 0.95
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 8.37
• Enterprise Value/Ebitda: 13.02
• 1Y Price Target: $57.00
• Price Target Upside: 6.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.63
• Revenue Forecast (FY): $1.74B

• Rating: 78 Outperform
• Price Target: $58.00 ▲(8.27% Upside)

Atmus Filtration Technologies receives a strong overall score driven by robust financial performance and strategic growth initiatives. The company's impressive cash flow and profitability metrics, along with positive earnings call outcomes, are significant strengths. However, high leverage and valuation concerns slightly temper the overall outlook.

Positive Factors

Cash Generation

Strong cash generation enhances financial resilience, enabling ATMU to invest in growth opportunities and maintain operational flexibility.

Strategic Acquisition

The acquisition of Koch Filter expands ATMU's market presence in industrial air filtration, potentially boosting revenue and profitability.

Revenue Growth

Consistent sales growth indicates strong market demand and effective pricing strategies, supporting long-term revenue expansion.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting ATMU's ability to invest in future growth.

Freight Recession

A prolonged freight recession could dampen demand for ATMU's products, affecting revenue growth and market expansion efforts.

Market Uncertainties

Regulatory uncertainties can create operational challenges and increase compliance costs, impacting ATMU's profitability and strategic planning.

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

Atmus Filtration Technologies demonstrates strong profitability and cash flow metrics, with robust margins and impressive cash generation. However, the high leverage indicated by the balance sheet poses potential risks, which slightly tempers the overall financial performance score.

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	1.72B	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: 53.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 53.57 is above the 20-day moving average (MA) of 51.64, above the 50-day MA of 48.28, and above the 200-day MA of 41.23, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 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
ATMU	78 Outperform	$4.37B	22.30	71.52%	0.39%	3.72%	11.71%
CECO	72 Outperform	$2.09B	41.48	18.85%	―	29.86%	331.33%
ERII	68 Neutral	$745.32M	41.35	9.41%	―	0.10%	1.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FTEK	51 Neutral	$51.89M	-17.04	-7.10%	―	-5.66%	-397.46%
ARQ	45 Neutral	$136.62M	-33.76	-1.80%	―	7.20%	-2951.61%
LIQT	45 Neutral	$17.62M	-1.82	-73.79%	―	10.97%	44.99%

Atmus Filtration Technologies, Inc. Corporate Events

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.

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.