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Allegheny Technologies

Market Cap

US$2.1b

Last Updated

2021/09/20 22:29 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 64.5% below our estimate of its fair value

Earnings are forecast to grow 94.01% per year

Risk Analysis

No risks detected for ATI from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

Stable Share Price: ATI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ATI's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.8%

ATI

-8.8%

US Metals and Mining

-2.5%

US Market


1 Year Return

77.3%

ATI

38.6%

US Metals and Mining

33.0%

US Market

Return vs Industry: ATI exceeded the US Metals and Mining industry which returned 36.8% over the past year.

Return vs Market: ATI exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

ATIIndustryMarket
7 Day-5.8%-8.8%-2.5%
30 Day-6.3%-6.5%-0.9%
90 Day-23.0%-8.2%0.8%
1 Year77.3%77.3%42.0%38.6%35.0%33.0%
3 Year-42.8%-42.8%53.4%43.0%57.6%47.9%
5 Year-4.9%-4.9%85.7%69.2%120.8%96.7%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATI ($16.63) is trading below our estimate of fair value ($46.85)

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


Price To Earnings Ratio

PE vs Industry: ATI is unprofitable, so we can't compare its PE Ratio to the US Metals and Mining industry average.

PE vs Market: ATI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ATI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATI is overvalued based on its PB Ratio (4.5x) compared to the US Metals and Mining industry average (2.4x).


Future Growth

How is Allegheny Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ATI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ATI's is expected to become profitable in the next 3 years.

Revenue vs Market: ATI's revenue (9.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ATI's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATI's Return on Equity is forecast to be low in 3 years time (19.9%).


Past Performance

How has Allegheny Technologies performed over the past 5 years?

-16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATI is currently unprofitable.

Growing Profit Margin: ATI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATI is unprofitable, and losses have increased over the past 5 years at a rate of 16.2% per year.

Accelerating Growth: Unable to compare ATI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ATI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (102.1%).


Return on Equity

High ROE: ATI has a negative Return on Equity (-199.65%), as it is currently unprofitable.


Financial Health

How is Allegheny Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ATI's short term assets ($2.0B) exceed its short term liabilities ($599.1M).

Long Term Liabilities: ATI's short term assets ($2.0B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: ATI's debt to equity ratio (258.8%) is considered high.

Reducing Debt: ATI's debt to equity ratio has increased from 89.6% to 258.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ATI has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ATI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

6.8yrs

Average management tenure


CEO

Bob Wetherbee (62 yo)

2.67yrs

Tenure

US$5,710,651

Compensation

Mr. Robert S. Wetherbee, also known as Bob, serves as Board Chair at Allegheny Technologies Incorporated since May 2021 and has been its President, Chief Executive Officer and Director since January 1, 201...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD5.71M) is above average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ATI's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: ATI's board of directors are not considered experienced ( 2.6 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: Insufficient data to determine if insiders have bought more shares than they have sold 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

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$2.133b
  • Shares outstanding: 127.25m
  • Website: https://www.atimetals.com

Number of Employees


Location

  • Allegheny Technologies Incorporated
  • 1000 Six PPG Place
  • Pittsburgh
  • Pennsylvania
  • 15222-5479
  • United States

Listings


Biography

Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. The company operates in two segments, High Performance Materials & Components and Advanced Alloys &...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:29
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.