ATI Inc (ATI) stock analysis

P/E above its 5-year median

ATI's P/E of 46.9 is above its own 5-year median of 22.8.

P/E above the industry

ATI's P/E of 46.9 is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 17.9.

EV/EBITDA above its 5-year median

ATI's EV/EBITDA of 26.9 is above its 5-year median of 15.2.

P/B above the industry

ATI's price-to-book of 12.70 is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 1.75.

Trading above fair value

The share price of $187.53 is above our fair value estimate of $85.18.

Margin of safety under 20%

The price is 120% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 9.4% over the last twelve months; the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median is 9.8%.

Guidance raised

ATI raised its Full Year 2026 Adjusted Free Cash Flow outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 24.5% over the last twelve months, against 21.4% a year earlier.

Return on equity over 15%

Return on equity was 29.9% over the last twelve months and averaged 29.4% over five years.

Return on capital over 10%

Return on invested capital was 20.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

ATI's return on equity of 29.9% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 3.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 11.1% over the last twelve months, against a 5-year average of 8.4%.

Net margin above the industry

ATI's net margin of 11.1% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 4.0%.

High debt

Debt is 92.6% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 301% five years ago to 92.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 39.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.77 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.49; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

ATI has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.