NYSE:ATI

Stock Analysis Report

Allegheny Technologies

Executive Summary

Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide.

Snowflake

Fundamentals

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Allegheny Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.3%

ATI

0.5%

US Metals and Mining

0.4%

US Market


1 Year Return

-24.5%

ATI

-7.8%

US Metals and Mining

6.9%

US Market

Return vs Industry: ATI underperformed the US Metals and Mining industry which returned -7.8% over the past year.

Return vs Market: ATI underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ATIIndustryMarket
7 Day-5.3%0.5%0.4%
30 Day-1.0%-2.9%-1.1%
90 Day-20.0%-7.0%-0.5%
1 Year-24.5%-24.5%-5.0%-7.8%9.3%6.9%
3 Year13.7%13.7%9.4%3.7%45.8%36.4%
5 Year-35.7%-38.8%-2.5%-9.9%62.9%45.1%

Price Volatility Vs. Market

How volatile is Allegheny Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Allegheny Technologies undervalued compared to its fair value and its price relative to the market?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ATI ($20.2) is trading below our estimate of fair value ($25.75)

Significantly Undervalued: ATI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ATI is poor value based on its PE Ratio (14x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: ATI is good value based on its PE Ratio (14x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATI is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ATI is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Allegheny Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATI's forecast earnings growth (33.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ATI's earnings (33.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATI's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ATI's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ATI's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Allegheny Technologies performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATI has become profitable over the past 5 years, growing earnings by 24% per year.

Accelerating Growth: ATI's earnings growth over the past year (1508%) exceeds its 5-year average (24% per year).

Earnings vs Industry: ATI earnings growth over the past year (1508%) exceeded the Metals and Mining industry 26.6%.


Return on Equity

High ROE: ATI's Return on Equity (9.1%) is considered low.


Return on Assets

ROA vs Industry: ATI's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: ATI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Allegheny Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ATI's short term assets ($2.3B) exceeds its short term liabilities ($759.2M)

Long Term Liabilities: ATI's short term assets (2.3B) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: ATI's debt to equity ratio (72.1%) is considered high

Reducing Debt: ATI's debt to equity ratio has increased from 51.4% to 72.1% over the past 5 years.

Debt Coverage: ATI's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: ATI's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATI's debt is covered by short term assets (assets are 1.466820x debt).


Next Steps

Dividend

What is Allegheny Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: ATI is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Allegheny Technologies's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Bob Wetherbee (60yo)

0.8yrs

Tenure

US$2,469,940

Compensation

Mr. Robert S. Wetherbee, also known as Bob, has been President, Chief Executive Officer and Director at Allegheny Technologies Incorporated since January 1, 2019. Mr. Wetherbee served as an Executive Vice  ...


CEO Compensation Analysis

Compensation vs. Market: Bob has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ATI's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ATI's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: ATI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$36,34015 Aug 19
Elizabeth Powers
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares2,000
Max PriceUS$18.17
BuyUS$44,20815 Aug 19
Kevin Kramer
EntityIndividual
Role
Head of Marketing
Senior VP and Chief Commercial & Marketing Officer
Shares2,500
Max PriceUS$17.68
BuyUS$51,62015 Aug 19
Timothy Harris
EntityIndividual
Role
Chief Information Officer
Senior VP and Chief Digital & Information Officer
Shares2,900
Max PriceUS$17.80
BuyUS$35,06015 Aug 19
Elliot Davis
EntityIndividual
Role
Chief Compliance Officer
Senior VP
Shares2,000
Max PriceUS$17.53
BuyUS$36,36015 Aug 19
Leroy Ball
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$18.18
BuyUS$91,80014 Aug 19
Robert Wetherbee
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$18.36
SellUS$192,06028 Jan 19
Barbara Jeremiah
EntityIndividual
Shares7,500
Max PriceUS$25.61

Ownership Breakdown


Management Team

  • Kim Fields (49yo)

    Executive Vice President of Flat Rolled Products Group

    • Tenure: 0.5yrs
  • Bob Wetherbee (60yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$2.47m
  • Beth Powers (59yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.9yrs
  • Elliot Davis (58yo)

    Senior VP

    • Tenure: 8.4yrs
  • John Sims (59yo)

    Executive Vice President of High Performance Material & Components Segment

    • Tenure: 8.4yrs
    • Compensation: US$2.28m
  • Karl Schwartz (56yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 8.4yrs
  • Kevin Kramer (59yo)

    Senior VP and Chief Commercial & Marketing Officer

    • Tenure: 5.7yrs
    • Compensation: US$2.08m
  • Pat DeCourcy (57yo)

    Senior VP of Finance & CFO

    • Tenure: 5.8yrs
    • Compensation: US$2.26m
  • Scott Minder

    VP of Investor Relations & Treasurer

    • Tenure: 2.3yrs
  • Timothy Harris

    Senior VP and Chief Digital & Information Officer

    • Tenure: 0.4yrs

Board Members

  • Jim Rohr (70yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$240.00k
  • Jim Diggs (71yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$235.00k
  • J. Harvey (68yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$225.00k
  • Diane Creel (71yo)

    Chairman & Lead Director

    • Tenure: 0.4yrs
    • Compensation: US$265.00k
  • Leroy Ball (50yo)

    Independent Director

    • Tenure: 0.7yrs
  • Bob Wetherbee (60yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$2.47m
  • John Pipski (72yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$245.00k
  • Carolyn Corvi (67yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$225.00k
  • David Morehouse (58yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$225.00k
  • Hawk Carlisle (63yo)

    Independent Director

    • Tenure: 1.7yrs

Company Information

Allegheny Technologies Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allegheny Technologies Incorporated
  • Ticker: ATI
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$2.547b
  • Shares outstanding: 126.08m
  • Website: https://www.atimetals.com

Number of Employees


Location

  • Allegheny Technologies Incorporated
  • 1000 Six PPG Place
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATINYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 1987
ATDDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1987

Biography

Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials & Components, and Flat-Rolled  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.