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

• Market Cap: $4.07B
• Dividend Yield: 0.41%
• Average Volume (3M): 658.22K
• Price to Earnings (P/E): 20.8
• 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: 856,918
• 30 Day Avg. Volume: 658,217
• 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: 1.01
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 8.37
• Enterprise Value/Ebitda: 13.02
• 1Y Price Target: $54.67
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.57
• Revenue Forecast (FY): $1.71B

• Rating: 78 Outperform
• Price Target: $53.00 ▲(6.13% Upside)

Atmus Filtration Technologies receives a strong overall score driven by robust financial performance and positive earnings call insights. The company's strategic initiatives and operational efficiency are significant strengths, although high leverage and market uncertainties present risks. The technical analysis supports a positive outlook, while valuation metrics suggest moderate growth potential.

Positive Factors

Strong Cash Generation

Atmus' ability to generate significant free cash flow supports its financial flexibility, enabling reinvestment in growth initiatives and debt reduction.

Operational Separation

The separation from Cummins allows Atmus to operate independently, focusing on its strategic goals and potentially improving operational efficiency.

Revenue Growth

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

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth or weather economic downturns.

Market Uncertainties

Regulatory uncertainties can affect operational costs and market dynamics, potentially impacting long-term strategic planning.

Freight Recession

A stagnant freight market can suppress demand for Atmus' filtration products, affecting revenue growth and profitability.

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: 49.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 49.94 is above the 20-day moving average (MA) of 46.31, above the 50-day MA of 45.60, and above the 200-day MA of 39.84, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 73.79 is Negative, neither overbought nor oversold. The STOCH value of 72.95 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	$4.07B	20.79	71.52%	0.41%	3.72%	11.71%
CECO	77 Outperform	$1.85B	36.65	18.85%	―	29.86%	331.33%
ERII	68 Neutral	$755.38M	41.90	9.41%	―	0.10%	1.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FTEK	48 Neutral	$78.31M	-23.98	-7.10%	―	-5.66%	-397.46%
ARQ	45 Neutral	$271.09M	―	-1.80%	―	7.20%	-2951.61%
LIQT	44 Neutral	$22.02M	-1.71	-78.97%	―	-12.76%	15.23%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Filtration Technologies Reports Strong Q3 2025 Results

Atmus Filtration Technologies Inc., headquartered in Nashville, Tennessee, is a global leader in filtration and media solutions, serving diverse markets such as truck, bus, agriculture, construction, mining, marine, and power generation. The company is known for its innovative approach and comprehensive aftermarket support.

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.

The most recent analyst rating on (ATMU) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

Atmus Filtration Technologies Reports Record Sales Amid Challenges

Atmus Filtration Technologies, Inc. recently held its earnings call, presenting a balanced outlook characterized by strong financial performance and strategic progress. The company reported record sales and successful operational transitions, yet acknowledged significant challenges in market conditions, foreign exchange impacts, and cost pressures.

Atmus Filtration Technologies Reports Strong Q2 2025 Results

Atmus Filtration Technologies Inc., headquartered in Nashville, Tennessee, is a global leader in filtration and media solutions, serving diverse markets such as truck, bus, agriculture, construction, mining, marine, and power generation. The company is renowned for its innovative approach and comprehensive aftermarket support.