NYSE:ATI

Stock Analysis Report

Allegheny Technologies

Executive Summary

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

Rewards

PE ratio (9.8x) is below the US market (18.4x)

Earnings grew by 15.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -6.9% per year for the next 3 years

Interest payments are not well covered by earnings



Snowflake Analysis

Proven track record and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

ATI

-0.9%

US Metals and Mining

1.5%

US Market


1 Year Return

-28.3%

ATI

0.9%

US Metals and Mining

20.1%

US Market

Return vs Industry: ATI underperformed the US Metals and Mining industry which returned 0.9% over the past year.

Return vs Market: ATI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ATIIndustryMarket
7 Day2.6%-0.9%1.5%
30 Day7.2%-7.1%1.4%
90 Day-15.1%-1.1%8.7%
1 Year-28.3%-28.3%3.5%0.9%22.7%20.1%
3 Year-0.6%-0.6%-6.3%-11.3%50.1%40.5%
5 Year-38.2%-40.9%18.7%9.4%73.1%54.1%

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?

9.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATI ($20.01) is trading above our estimate of fair value ($16.52)

Significantly Below Fair Value: ATI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATI is good value based on its PE Ratio (9.8x) compared to the Metals and Mining industry average (11x).

PE vs Market: ATI is good value based on its PE Ratio (9.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ATI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ATI is good value based on its PB Ratio (1.2x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Allegheny Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATI's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: ATI's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: ATI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ATI's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ATI's revenue (1.2% 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 (9.9%).


Next Steps

Past Performance

How has Allegheny Technologies performed over the past 5 years?

41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATI has high quality earnings.

Growing Profit Margin: ATI's current net profit margins (6.2%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: ATI has become profitable over the past 5 years, growing earnings by 41.2% per year.

Accelerating Growth: ATI's earnings growth over the past year (15.8%) is below its 5-year average (41.2% per year).

Earnings vs Industry: ATI earnings growth over the past year (15.8%) exceeded the Metals and Mining industry 14.9%.


Return on Equity

High ROE: ATI's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Allegheny Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ATI's short term assets ($2.3B) exceed its short term liabilities ($849.2M).

Long Term Liabilities: ATI's short term assets ($2.3B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: ATI's debt to equity ratio (60.1%) is considered high.

Reducing Debt: ATI's debt to equity ratio has increased from 55.7% to 60.1% over the past 5 years.


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 1.7x debt).


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 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ATI is profitable, therefore cash runway is not a concern.


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

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.


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?

3.9yrs

Average management tenure


CEO

Bob Wetherbee (60yo)

1.1yrs

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's total compensation ($USD2.47M) is below average for companies of similar size in the US market ($USD4.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Wetherbee
President1.1yrsUS$2.47m0.055% $1.4m
Kevin Kramer
Senior VP and Chief Commercial & Marketing Officer6yrsUS$2.08m0.057% $1.4m
John Sims
Executive Vice President of High Performance Material & Components Segment8.8yrsUS$2.28m0.090% $2.3m
Patrick DeCourcy
Senior VP & Special Advisor to the CEO0.08yrsUS$2.26m0.063% $1.6m
Donald Newman
SVP of Finance & CFO0.08yrsno datano data
Karl Schwartz
VP, Controller & Chief Accounting Officer8.8yrsno data0.026% $649.2k
Timothy Harris
Senior VP and Chief Digital & Information Officer0.8yrsno data0.021% $527.0k
Scott Minder
VP of Investor Relations & Treasurer2.6yrsno datano data
Elliot Davis
Senior VP8.8yrsno data0.091% $2.3m
Elizabeth Powers
Senior VP & Chief Human Resources Officer5.3yrsno data0.045% $1.1m

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ATI's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Wetherbee
President1.1yrsUS$2.47m0.055% $1.4m
James Rohr
Independent Director24.1yrsUS$240.00k0.058% $1.5m
James Diggs
Independent Director19.1yrsUS$235.00k0.029% $729.6k
J. Harvey
Independent Director12.2yrsUS$225.00k0.039% $994.6k
Diane Creel
Chairman & Lead Director0.8yrsUS$265.00k0.044% $1.1m
Leroy Ball
Independent Director1yrsno data0.0052% $130.7k
John Pipski
Independent Director8.2yrsUS$245.00k0.033% $838.4k
Carolyn Corvi
Independent Director7.4yrsUS$225.00k0.026% $659.3k
David Morehouse
Independent Director5yrsUS$225.00k0.021% $529.6k
Herbert Carlisle
Independent Director2yrsno data0.0060% $152.1k

6.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ATI's board of directors are considered experienced (6.2 years average tenure).


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$2.523b
  • Shares outstanding: 126.09m
  • 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 Products. The High Performance Materials & Components segment produces high performance materials, including titanium and titanium-based alloys; nickel-and cobalt-based alloys and superalloys; zirconium and related alloys, such as hafnium and niobium; powder alloys; and other specialty materials in long product forms of ingots, billets, bars, rods, wires, and shapes and rectangles, as well as seamless tubes, plus precision forgings, castings, components, and machined parts. This segment serves aerospace and defense, medical, oil and gas, and electrical energy markets. The Flat-Rolled Products segment provides stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys in various product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products. This segment serves various markets, such as chemical and hydrocarbon processing, automotive, aerospace and defense, food processing equipment and appliances, construction and mining, electronics, communication equipment, and computers. Allegheny Technologies Incorporated was founded in 1960 and is based in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:30
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.