Atkore logged a 1.8% change during today's overnight session, and is now trading at a price of $116 per share. The S&P 500 index moved -0.4% and the Nasdaq posted a -1.4% change. ATKR's trading volume is 258,905 compared to the stock's average volume of 493,973.
Over the last 52 weeks, the stock moved 0.3%, with a high of $128.36 and a low of $70.5. During this time, the stock underperformed the S&P 500 index by 20.1%. Atkore Inc. engages in the manufacture and sale of electrical, safety, and infrastructure products in the United States and internationally. The mid-cap Industrials company has 4,000 full time employees and is based in Harvey, IL. Atkore has not offered any dividends in the last year.
Snapshot of the Company's Financials:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $1,917 | $1,765 | $2,928 | $3,914 |
| Revenue Growth | n/a | -7.9% | 65.8% | 33.7% |
| Gross Margins | 25.94% | 27.83% | 38.44% | 41.9% |
| Gross Margins Growth | n/a | 7.29% | 38.12% | 9.0% |
| Operating Margins | 11.67% | 13.57% | 27.29% | 31.52% |
| Operating Margins Growth | n/a | 16.28% | 101.11% | 15.5% |
| Earnings Per Share | $2.83 | $3.1 | $12.19 | $20.3 |
| EPS Growth | n/a | 9.54% | 293.23% | 66.53% |
| Free Cash Flow (MM) | $175 | $215 | $508 | $651 |
| FCF Growth | n/a | 22.97% | 136.49% | 28.05% |
| Capital Expenditures (MM) | $-35 | $-34 | $-64 | $-136 |
| Net Debt / EBITDA | 2.42 | 1.62 | 0.22 | 0.29 |
Basic Valuation Metrics Show Atkore Is Undervalued:
Compared to the Industrials sector's average of 21.46, Atkore has a trailing twelve month price to earnings (P/E) ratio of 5.7 and, based on its Eps guidance of 15.12, an expected P/E ratio of 7.7. The firm's price to earnings growth (PEG) is -3.14, which indicates that the company is undervalued in terms of its expected earnings growth. Atkore's price to book (P/B) ratio is 3.8 compared to its sector average of 3.7.
As of the date of publication, the company is trading -1.1% below its Graham number, implying there is a margin of safety for the stock. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 20.25 * 30.224) = $117.35
There is Mixed market sentiment About Atkore:
4 analysts are following Atkore and have set target prices ranging from $135 to $150 per share. On average, they have given the company a rating of buy. At today's prices, ATKR is trading -18.17% away from its average analyst target price of $141.75 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 6.7% of the company's shares are tied to short positions. Institutions own 106.5% of Atkore's shares, while the insider ownership rate stands at 0.83%. The biggest shareholder is the Vanguard Group, Inc. with a 11.94% stake in the company worth approximately $552,109,192.00.
