Atkore logged a -1.8% change during today's morning session, and is now trading at a price of $82.61 per share.
Atkore returned losses of -36.3% last year, with its stock price reaching a high of $194.98 and a low of $76.34. Over the same period, the stock underperformed the S&P 500 index by -66.1%. AThe company's 50-day average price was $87.74. Atkore Inc. engages in the manufacture and sale of electrical, mechanical, safety, and infrastructure products and solutions in the United States and internationally. Based in Harvey, IL, the Mid-Cap Industrials company has 4,816 full time employees. Atkore has offered a 0.8% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 31.12%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,835 | $1,917 | $1,765 | $2,928 | $3,914 | $3,519 |
| Gross Margins | 24% | 26% | 28% | 38% | 42% | 38% |
| Net Margins | 7% | 7% | 9% | 20% | 23% | 20% |
| Net Income (M) | $137 | $139 | $152 | $588 | $913 | $690 |
| Net Interest Expense (M) | -$41 | -$50 | -$40 | -$33 | -$31 | -$35 |
| Depreciation & Amort. (M) | $67 | $72 | $74 | $79 | $84 | $116 |
| Diluted Shares (M) | 170 | 123 | 89 | 64 | 56 | 52 |
| Earnings Per Share | $0.8 | $1.13 | $1.71 | $9.21 | $16.42 | $13.34 |
| EPS Growth | n/a | 41.25% | 51.33% | 438.6% | 78.28% | -18.76% |
| Avg. Price | $21.91 | $28.05 | $29.77 | $80.62 | $101.03 | $80.5 |
| P/E Ratio | 10.33 | 9.48 | 17.41 | 6.31 | 4.39 | 4.35 |
| Free Cash Flow (M) | $107 | $175 | $215 | $508 | $651 | $589 |
| CAPEX (M) | $39 | $35 | $34 | $64 | $136 | $219 |
| EV / EBITDA | 9.09 | 6.75 | 10.13 | 4.53 | 3.39 | 3.37 |
| Total Debt (M) | $904 | $845 | $804 | $763 | $761 | $773 |
| Net Debt / EBITDA | 3.36 | 2.3 | 1.67 | 0.3 | 0.34 | 0.39 |
| Current Ratio | 2.18 | 2.61 | 2.88 | 2.9 | 2.96 | 2.96 |
Atkore has rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company also benefits from an excellent current ratio of 2.96, wider gross margins than its peer group, and healthy leverage levels.
Atkore Has Attractive Multiples and Its Shares Are on Sale:
Atkore has a trailing twelve month P/E ratio of 6.2, compared to an average of 25.42 for the Industrials sector. Based on its EPS guidance of $11.72, the company has a forward P/E ratio of 7.5. According to the 46.7% compound average growth rate of Atkore's historical and projected earnings per share, the company's PEG ratio is 0.13. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 20.6%. On this basis, the company's PEG ratio is 0.3. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Atkore in terms of its equity because its P/B ratio is 1.9 whereas the sector average is 3.2. The company's shares are currently trading -11.5% above their Graham number.
There's an Analyst Consensus of Strong Upside Potential for Atkore:
The 6 analysts following Atkore have set target prices ranging from $99.0 to $140.0 per share, for an average of $122.5 with a buy rating. The company is trading -32.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Atkore has an above average percentage of its shares sold short because 13.3% of the company's shares are sold short. Institutions own 105.8% of the company's shares, and the insider ownership rate stands at 0.94%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $310,408,703.
