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

• Market Cap: $5.12B
• Dividend Yield: 0.39%
• Average Volume (3M): 864.46K
• Price to Earnings (P/E): 20.6
• 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): 0.66
• Shares Outstanding: 81,508,590
• 10 Day Avg. Volume: 886,364
• 30 Day Avg. Volume: 864,462
• PEG Ratio: 1.58
• Price to Book (P/B): 11.27
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 28.68
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 10.85
• Enterprise Value/Ebitda: 16.73
• 1Y Price Target: $71.60
• Price Target Upside: 12.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.95
• Revenue Forecast (FY): $1.99B

• Rating: 63 Neutral
• Price Target: $66.00 ▲(3.56% Upside)
• Action: Downgraded Date: 02/14/26
• Date: Action: Downgraded 02/14/26

The score is held back primarily by elevated leverage and a significant inconsistency in the latest income statement data, despite solid free cash flow. Technicals are constructive with strong trend/momentum, and the earnings call provided supportive 2026 growth and EPS guidance (helped by the Cook Filter expansion), but valuation looks somewhat expensive with only a modest dividend yield.

Positive Factors

Recurring Aftermarket Demand

Atmus’s dual-channel model (OEM first-fit plus aftermarket consumables) creates recurring revenue backed by a large installed base. This structural demand for replacement filters smooths revenue volatility and supports predictable unit volumes and steady long-term cash flow.

Strong Free Cash Flow

Consistently positive operating cash flow and a sizable FY2025 free cash flow position provide durable internal funding for capex, dividends, and buybacks. Reliable cash generation supports deleveraging, ongoing investments, and shareholder returns over the medium term.

Industrial Platform Expansion

The Koch Filter acquisition strategically broadens Atmus into commercial/industrial HVAC, data centers and power generation—higher-growth, complementary end markets. The deal diversifies end-market exposure and creates procurement and cross‑sell synergies that can boost structural revenue mix and resilience.

Negative Factors

Elevated Leverage

Leverage increased materially versus prior years, leaving the company more sensitive to cyclical slowdowns or rising rates. Higher debt amplifies refinancing, covenant and interest-cost risks and constrains financial flexibility for M&A or opportunistic investments over the medium term.

Income-Statement Data Quality Issue

A major reporting inconsistency for 2025 revenue/margins undermines trend visibility and complicates forecasting and credit assessment. Persistent or unresolved data anomalies reduce transparency for investors and hamper reliable medium-term planning and covenant monitoring.

Limited Near-Term Margin Expansion

Management expects revenue growth but a largely flat adjusted EBITDA midpoint, indicating cost pressures, one-time charges, and investment pacing offsetting top-line gains. That suggests constrained margin upside in the near term and uncertainty around sustainable operating-leverage improvements.

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

Underlying profitability and cash generation are solid (net margins ~10–12% historically and consistently positive free cash flow, including strong FY2025 FCF), but the balance sheet has become notably more leveraged (debt-to-equity rising to elevated levels in 2023–2025). A major data-quality/consistency issue in the latest income statement (2025 revenue shown as 0 with 0% margins) reduces confidence in the most recent trend.

Income Statement

From 2020–2024, the company showed steady revenue growth (generally low-to-mid single digits, with a stronger rebound in 2021) and maintained solid profitability, with gross margin improving from ~23% (2022) to ~28% (2024) and net margin holding around ~10–12%. However, the 2025 annual data shows revenue recorded as 0 with margins at 0% and a -100% revenue growth rate, which is a major quality/consistency red flag that clouds the most recent trend despite positive EBIT and net income figures.

Balance Sheet

Leverage increased meaningfully over time: debt-to-equity moved from very low levels in 2020–2022 (~0.02–0.07) to elevated levels in 2023–2025 (about ~1.5 to ~7.8), indicating a materially more leveraged capital structure. Equity improved from 2023 to 2025, which helps, but total debt remains high versus equity and raises financial risk and sensitivity to downturns compared with earlier years.

Cash Flow

Cash generation is generally healthy: operating cash flow and free cash flow are consistently positive across the years, and 2025 shows strong free cash flow ($148.8M) with positive growth versus the prior year. That said, cash conversion vs. reported earnings is moderate (free cash flow running at roughly ~54%–88% of net income across the period), and operating cash flow relative to EBIT is not especially strong in the available data, suggesting some working-capital or cash-timing headwinds at times (notably 2024).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.76B	1.67B	1.63B	1.56B	1.44B
Gross Profit	509.50M	474.20M	432.70M	359.20M	349.30M
EBITDA	318.80M	286.00M	273.70M	197.50M	205.40M
Net Income	207.40M	185.60M	171.30M	170.40M	170.10M
Balance Sheet
Total Assets	1.35B	1.19B	1.09B	867.40M	848.30M
Cash, Cash Equivalents and Short-Term Investments	236.40M	184.30M	168.00M	0.00	0.00
Total Debt	570.00M	631.60M	625.90M	32.60M	9.80M
Total Liabilities	972.20M	962.90M	1.01B	411.80M	411.10M
Stockholders Equity	378.50M	227.40M	80.70M	455.60M	437.20M
Cash Flow
Free Cash Flow	148.80M	56.80M	143.20M	128.20M	176.50M
Operating Cash Flow	202.70M	105.40M	189.00M	165.70M	209.90M
Investing Cash Flow	-53.90M	-48.60M	-45.80M	-37.50M	-33.40M
Financing Cash Flow	-101.70M	-35.80M	24.80M	-128.20M	-176.50M

Atmus Filtration Technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.73
• 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 63.73 is above the 20-day moving average (MA) of 63.27, above the 50-day MA of 58.36, and above the 200-day MA of 46.69, indicating a neutral trend. The MACD of 1.80 indicates Positive momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.66 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
ERII	71 Outperform	$539.91M	31.61	11.03%	―	0.10%	1.50%
CECO	67 Neutral	$1.78B	42.25	17.71%	―	29.86%	331.33%
ATMU	63 Neutral	$5.12B	20.57	68.46%	0.39%	3.72%	11.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FTEK	56 Neutral	$42.88M	-20.77	-7.10%	―	-5.66%	-397.46%
LIQT	53 Neutral	$15.72M	-1.65	-73.79%	―	10.97%	44.99%
ARQ	45 Neutral	$149.43M	-114.05	-1.80%	―	7.20%	-2951.61%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Filtration Technologies Declares Quarterly Cash Dividend

On February 9, 2026, Atmus Filtration Technologies Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.055 per common share. The dividend is scheduled to be paid on March 4, 2026, to shareholders of record as of the close of business on February 20, 2026, reinforcing the company’s capital return practices and offering near‑term income to investors.

The declaration of this dividend signals Atmus’s confidence in its financial position and cash‑flow generation as it continues to operate across its Power Solutions and Industrial Solutions segments. For shareholders, the payout underscores management’s commitment to delivering shareholder returns, while for the market it provides an additional data point on the company’s ongoing financial discipline and stability within the filtration industry.

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 Adds Heath Sharp to Board of Directors

On February 5, 2026, Atmus Filtration Technologies Inc. expanded its Board of Directors from seven to eight members and appointed industrial executive Heath Sharp as an independent Class III director, with his term set to expire at the company’s next annual meeting of stockholders. Sharp, a mechanical engineer with more than 30 years of international leadership experience in manufacturing, product development and commercial execution, currently serves as CEO and Managing Director of Reliance Worldwide Corporation, where he has overseen its evolution into a global leader in water control systems and plumbing solutions. His appointment, made without any prior arrangement or related-party transactions, brings additional global operational expertise and governance depth to Atmus, with Sharp joining both the Audit Committee and the Nominating and Governance Committee and receiving director compensation consistent with the company’s other non-employee directors.

The most recent analyst rating on (ATMU) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

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.