One-glance verdict
Overvalued
$54.23 our estimate vs market $189.65
Wall Street consensus: $259.89 (379.3% higher than our fair-value estimate)
250% above our estimate, beyond the bull case
Fundamentals snapshot
ATI Inc.
ATI · NYQ · Industrials · Metal Fabrication
Current price
$189.65
52-week range
$75.02 - $243.57
Market cap
$25.82B
Balance sheet
Watch
5.80x Adequate
Net debt $1.41B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.8% last year.
- Reward Returns 25.4% on equity, ahead of 33% of its peers.
- Risk Stock trades 103.2% above its 5-year average P/E.
- Risk Net debt grew 14.5% over 3 years.
What this company does
ATI Inc.
ATI Inc. makes highly specialized and strong metals, like titanium and nickel alloys, that can withstand extreme heat and pressure. The company sells these advanced materials primarily to the aerospace and defense industries for critical parts in things like jet engines and missiles. Because these materials are essential for high-tech manufacturing, ATI's success is closely tied to the health and spending of the air travel and defense sectors.
How the company got here
ATI, formerly known as Allegheny Technologies Incorporated, was formed in 1996 through a merger of two companies with deep roots in the American metals industry: Allegheny Ludlum and Teledyne. This combination brought together expertise in specialty steels and advanced electronics and aerospace materials. Over the years, ATI has focused more on its core business of producing high-performance specialty metals and alloys. To do this, it has sold off other businesses, like Water Pik Technologies, to concentrate on making materials for demanding industries like aerospace and defense.
What it actually does
ATI is a specialized materials science company that creates high-performance metals and components designed to withstand extreme conditions like intense heat, pressure, and corrosion. You won't find their products on a store shelf, but they are critical parts of things you might see or use every day. For example, they make the advanced metal alloys that are essential for jet engines, medical implants, and equipment used for energy exploration. Essentially, they provide the super-strong, lightweight, and durable materials that other companies need to build complex and reliable products.
High Performance Materials & Components (HPMC)
This is ATI's largest business segment, making up more than half of the company's sales. It focuses on producing some of the most advanced and difficult-to-make materials, such as titanium and nickel-based superalloys. These are sold in forms like bars, rods, and wires, and are also forged and machined into precise parts. The primary customers for this segment are in the aerospace and defense industries, who use these materials for critical applications like jet engines and airframes where strength and heat resistance are crucial.
Advanced Alloys & Solutions (AA&S)
This part of the company provides specialty alloys in flat-rolled forms like plates, sheets, and strips. It combines deep technical knowledge with advanced manufacturing to create materials for various industries, including energy, medical, and automotive. For instance, they produce highly corrosion-resistant zirconium for nuclear reactors and specialty stainless steel for food equipment and appliances. This segment focuses on creating value through specialized products rather than just producing large volumes of standard metals.
What management is betting on now
ATI's leadership is focused on increasing its business in markets where high performance is a must, especially aerospace and defense. The strategy is to move away from more standard, lower-priced metal products and concentrate on highly engineered materials where their scientific expertise gives them an edge. They are investing in expanding their capacity to produce titanium and nickel alloys to meet the growing demand for new, more fuel-efficient aircraft engines. This focus on high-value products is intended to improve profitability (the amount of profit made from sales) and make the company more resilient to economic changes.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-41.80M
FY2024 Q4
$333.60M
FY2025 Q1
$-145.80M
FY2025 Q2
$89.40M
FY2025 Q3
$167.00M
FY2025 Q4
$223.10M
FY2026 Q1
$73.00M
FY2026 Q2
$63.20M
Revenue
$1.26B
Net income
$151.00M
Diluted EPS
1.09
Operating cash flow
$131.80M
Free cash flow
$63.20M
Fetching…
Sources
Revenue
$1.15B
Net income
$118.20M
Diluted EPS
0.85
Operating cash flow
$128.20M
Free cash flow
$73.00M
Fetching…
Sources
Revenue
$1.18B
Net income
$96.60M
Diluted EPS
0.70
Operating cash flow
$315.80M
Free cash flow
$223.10M
Fetching…
Sources
Revenue
$1.13B
Net income
$110.00M
Diluted EPS
0.78
Operating cash flow
$229.50M
Free cash flow
$167.00M
Fetching…
Sources
Revenue
$1.14B
Net income
$100.70M
Diluted EPS
0.70
Operating cash flow
$161.50M
Free cash flow
$89.40M
Fetching…
Sources
Revenue
$1.14B
Net income
$97.00M
Diluted EPS
0.67
Operating cash flow
$-92.50M
Free cash flow
$-145.80M
Fetching…
Sources
Revenue
$1.17B
Net income
$137.10M
Diluted EPS
0.94
Operating cash flow
$380.90M
Free cash flow
$333.60M
Fetching…
Sources
Revenue
$1.05B
Net income
$82.70M
Diluted EPS
0.57
Operating cash flow
$24.00M
Free cash flow
$-41.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $54.23 vs current price $189.65
Wall Street consensus is the average analyst price target: $259.89 (379.3% higher than our fair-value estimate).
Our most-likely fair value is $54.23 a share — about 71.4% below today's price of $189.65, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.4B. Interest coverage 5.8x.
Net debt
$1.41B
Interest coverage
5.80x
ATI Inc.'s profit covers its interest bill about 5.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ATI
BASELINE
ATI Inc.
Total debt $2.19B Interest coverage 5.80x This is the baseline the peer rows are being compared against.
Total debt $727.50M Interest coverage 16.03x +176% vs ATI Carries about 2.8x more debt cushion than ATI.
Total debt $4.66B Interest coverage 14.11x +143% vs ATI Carries about 2.4x more debt cushion than ATI.
Total debt $2.00B Interest coverage 6.08x +5% vs ATI Has roughly the same debt cushion as ATI.
Total debt $959.40M Interest coverage 4.55x -22% vs ATI Carries about 1.3x less debt cushion than ATI.
Total debt $1.07B Interest coverage 3.81x -34% vs ATI Carries about 1.5x less debt cushion than ATI.
What you should know
The case for and against ATI
3 Rewards
3 Risks
Rewards
-
Revenue grew 2.8% last year.
-
Returns 25.4% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 103.2% above its 5-year average P/E.
-
Net debt grew 14.5% over 3 years.
-
Insider ownership is only 0.8% (peer median: 1.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
55.45x
Forward P/E
29.76x
P/B
13.76x
P/S
5.48x
EV/EBITDA
29.40x
PEG ratio
1.33x
Profitability
How much profit each dollar creates
Gross margin
23.6%
Operating margin
18.2%
Net margin
10.1%
ROE
25.4%
ROA
8.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.10x
Current ratio
2.33x
Quick ratio
1.08x
Total debt
$2.19B
Total cash
$783.00M
Growth
How the business has been compounding
Revenue TTM
$4.72B
Revenue 5Y CAGR
13.1%
EPS TTM
3.42
EPS 5Y CAGR
43.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$805.30M
Free CF TTM
$333.70M
FCF margin
7.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
—
Last ex-div date
—