NYSE:ATKR

Stock Analysis Report

Atkore International Group

Executive Summary

Atkore International Group Inc. manufactures and distributes electrical raceway products, and mechanical products and solutions (MP&S) in the United States and internationally.

Rewards

Trading at 24.7% below its fair value

Earnings are forecast to grow 15.56% per year

Earnings grew by 7.1% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Atkore International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATKR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

ATKR

1.8%

US Electrical

1.8%

US Market


1 Year Return

74.4%

ATKR

14.1%

US Electrical

20.1%

US Market

Return vs Industry: ATKR exceeded the US Electrical industry which returned 14.1% over the past year.

Return vs Market: ATKR exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

ATKRIndustryMarket
7 Day0.6%1.8%1.8%
30 Day1.4%0.5%1.4%
90 Day12.7%5.6%8.8%
1 Year74.4%74.4%16.5%14.1%22.7%20.1%
3 Year64.7%64.7%34.4%26.7%50.1%40.4%
5 Yearn/a49.2%34.2%72.9%53.9%

Price Volatility Vs. Market

How volatile is Atkore International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atkore International Group undervalued compared to its fair value and its price relative to the market?

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATKR ($42.16) is trading below our estimate of fair value ($55.97)

Significantly Below Fair Value: ATKR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATKR is good value based on its PE Ratio (13.7x) compared to the Electrical industry average (21.1x).

PE vs Market: ATKR is good value based on its PE Ratio (13.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ATKR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ATKR is overvalued based on its PB Ratio (7.4x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

How is Atkore International Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATKR's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ATKR's earnings (15.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: ATKR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATKR's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ATKR's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ATKR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Atkore International Group performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATKR has high quality earnings.

Growing Profit Margin: ATKR's current net profit margins (7.5%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: ATKR has become profitable over the past 5 years, growing earnings by 48% per year.

Accelerating Growth: ATKR's earnings growth over the past year (7.1%) is below its 5-year average (48% per year).

Earnings vs Industry: ATKR earnings growth over the past year (7.1%) exceeded the Electrical industry -1.9%.


Return on Equity

High ROE: Whilst ATKR's Return on Equity (53.98%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atkore International Group's financial position?


Financial Position Analysis

Short Term Liabilities: ATKR's short term assets ($731.0M) exceed its short term liabilities ($280.0M).

Long Term Liabilities: ATKR's short term assets ($731.0M) do not cover its long term liabilities ($948.0M).


Debt to Equity History and Analysis

Debt Level: ATKR's debt to equity ratio (310.6%) is considered high.

Reducing Debt: ATKR's debt to equity ratio has reduced from 392.8% to 310.6% over the past 5 years.

Debt Coverage: ATKR's debt is well covered by operating cash flow (26.2%).

Interest Coverage: ATKR's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: ATKR has a high level of physical assets or inventory.

Debt Coverage by Assets: ATKR's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Atkore International Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ATKR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATKR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATKR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATKR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATKR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Bill Waltz (55yo)

1.3yrs

Tenure

US$6,334,046

Compensation

Mr. William E. Waltz Jr., also known as Bill, has been the President (since May 08, 2018), Chief Executive Officer and Director of Atkore International Group Inc. since October 1, 2018. Mr. Waltz was Chie ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD6.33M) is above average for companies of similar size in the US market ($USD3.76M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Waltz
President1.3yrsUS$6.33m0.17% $3.4m
David Johnson
VP, CFO & Chief Accounting Officer1.5yrsUS$1.49m0.025% $492.5k
Daniel Kelly
VP, General Counsel & Secretary6.4yrsUS$1.10m0.025% $491.1k
Peter Lariviere
President of Cable Solutions4.4yrsUS$1.25m0.078% $1.6m
Mark Lamps
President of Mechanical Products & Solutions0.9yrsUS$1.03m0.032% $635.6k
Lee Paree
Vice President of Information Technology0yrsno datano data
John Deitzer
Vice President of Investor Relations0.6yrsno datano data
Lisa Winter
Vice President of Corporate Communications7.3yrsno datano data
LeAngela Lowe
Vice President of Global Human Resources0.7yrsno datano data
John Pregenzer
President of Conduit & Fittings1.4yrsno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Management: ATKR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Waltz
President1.3yrsUS$6.33m0.17% $3.4m
Betty Johnson
Independent Director1.5yrsUS$188.75k0.015% $305.3k
Michael Schrock
Independent Chairman of the Board1.5yrsUS$256.42k0.019% $388.6k
Scott Muse
Independent Director4.2yrsUS$198.75k0.026% $519.1k
Jeri Isbell
Independent Director4.2yrsUS$203.75k0.026% $519.1k
William VanArsdale
Independent Director4.2yrsUS$188.75k0.042% $840.0k
A. Zeffiro
Independent Director 5.1yrsUS$208.75k0.026% $519.1k
Wilbert James
Independent Director2.5yrsUS$188.75k0.028% $551.7k
Justin Kershaw
Independent Director2.5yrsUS$188.75k0.028% $551.7k

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: ATKR's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATKR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Atkore International Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atkore International Group Inc.
  • Ticker: ATKR
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$2.002b
  • Shares outstanding: 47.48m
  • Website: https://www.atkore.com

Number of Employees


Location

  • Atkore International Group Inc.
  • 16100 South Lathrop Avenue
  • Harvey
  • Illinois
  • 60426
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATKRNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2016
AOADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2016
ATKR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2016

Biography

Atkore International Group Inc. manufactures and distributes electrical raceway products, and mechanical products and solutions (MP&S) in the United States and internationally. The company offers electrical raceway products, including electrical conduits and fittings, armored cables and fittings, and cable trays and mounting systems and fittings. It also provides MP&S products comprising metal framing and fittings, mechanical pipes, and barbed tapes, as well as construction services related to design, fabrication and installation, modular support structures, and fall protection. The company offers its products under the Allied Tube & Conduit, AFC Cable Systems, Heritage Plastics, Unistrut, Power-Strut, Cope, and Calpipe brands, as well as other sub-brands. It serves a group of end markets, including new construction; maintenance, repair, and remodel, as well as infrastructure; diversified industrials; alternative power generation; healthcare; data centers; and government through electrical, industrial, and mechanical contractors, as well as original equipment manufacturers. The company was founded in 1959 and is headquartered in Harvey, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:42
End of Day Share Price2020/02/14 00:00
Earnings2019/12/27
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.