Atkore International Group (ATKR) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: 2.21%
• Average Volume (3M): 680.13K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 1.45
• Revenue Growth: -12.01%
• EPS Growth: -38.33%
• Country: US
• Employees: 5,264
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): 10.33
• Shares Outstanding: 34,398,716
• 10 Day Avg. Volume: 615,842
• 30 Day Avg. Volume: 680,135
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.70
• Price to Cash Flow (P/CF): 7.20
• P/FCF Ratio: 7.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.00
• Price Target Upside: 18.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Atkore's overall stock score reflects a mix of strong financial fundamentals, notably in profitability and cash flow, countered by technical weakness and challenging market conditions as highlighted in recent earnings. While valuation appears favorable, significant risks from declining revenues and market competition weigh on the outlook.

Atkore International Group Business Overview & Revenue Model

Company Description

Atkore Inc. manufactures and sells electrical, safety, and infrastructure products in the United States and internationally. The company offers electrical products, including conduits cables, and installation accessories. It also provides safety and infrastructure solutions, such as metal framing, mechanical pipe, perimeter security, and cable management. The company offers its products under the Allied Tube & Conduit, AFC Cable Systems, Kaf-Tech, Heritage Plastics, Unistrut, Power-Strut, Cope, US Tray, FRE Composites, Calbond, and Calpipe 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 formerly known as Atkore International Group Inc. and changed its name to Atkore Inc. in February 2021. Atkore Inc. was founded in 1959 and is headquartered in Harvey, Illinois.

How the Company Makes Money

Atkore International Group generates revenue primarily through the sale of its electrical raceway and mechanical products. The company serves a diverse range of sectors, including commercial construction, industrial facilities, and infrastructure development. Key revenue streams include the sale of conduits, cable management systems, and related accessories, as well as mechanical systems like metal framing and fittings. Atkore's earnings are bolstered by its extensive distribution network and strategic partnerships with suppliers and contractors that enhance its market reach and product accessibility. Additionally, the company's focus on innovation and operational efficiency contributes to its profitability, enabling it to maintain competitive pricing and quality standards in the market.

Atkore International Group Financial Statement Overview

Summary

Atkore International Group demonstrates strong profitability and cash flow management despite facing declining revenue trends. The balance sheet showcases prudent leverage levels, supporting financial stability. While revenue headwinds pose a challenge, the company's effective margin and cash flow strategies position it well for future resilience.

Income Statement

The income statement shows a significant decline in revenue over the past periods, with a decrease from $3.91 billion in 2022 to $3.07 billion in TTM (Trailing-Twelve-Months). This reflects a negative revenue growth trend. However, the company maintains a strong gross profit margin of 30.8% and a net profit margin of 12.4% in TTM, indicating efficient cost management. Despite the revenue drop, profitability remains robust.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.61 in TTM, showing moderate leverage. The return on equity is strong at 25.3%, reflecting solid profitability. However, the equity ratio is relatively low at 50.9%, suggesting a potential risk if liabilities increase. Overall, the balance sheet presents a balanced but cautious financial standing.

Cash Flow

Cash flow analysis reveals healthy cash generation with a free cash flow to net income ratio of 0.83, showing efficient conversion of income into cash. The operating cash flow to net income ratio is 1.22, highlighting strong cash operations. Although free cash flow growth rate is negative, overall cash flow management is commendable.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.07B	3.20B	3.52B	3.91B	2.93B	1.77B
	Gross Profit
944.17M	1.08B	1.34B	1.64B	1.13B	491.31M
	EBIT
517.26M	624.78M	893.49M	1.23B	798.95M	239.56M
	EBITDA
590.42M	624.78M	1.02B	1.33B	905.97M	331.33M
	Net Income Common Stockholders
380.83M	472.87M	689.90M	913.43M	587.86M	152.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.00M	351.38M	388.11M	388.75M	576.29M	284.47M
	Total Assets
1.29B	3.02B	2.94B	2.60B	2.21B	1.56B
	Total Debt
0.00	951.20M	884.43M	832.30M	800.41M	843.66M
	Net Debt
-55.00M	599.82M	496.32M	443.55M	224.12M	559.19M
	Total Liabilities
743.00M	1.48B	1.47B	1.35B	1.35B	1.18B
	Stockholders Equity
548.00M	1.54B	1.47B	1.25B	864.74M	378.41M
Cash Flow		Free Cash Flow
317.97M	399.17M	588.75M	651.06M	508.43M	214.99M
	Operating Cash Flow
464.79M	549.03M	807.63M	786.84M	572.90M	248.76M
	Investing Cash Flow
-145.17M	-154.34M	-302.15M	-442.80M	-97.96M	-27.51M
	Financing Cash Flow
-384.80M	-435.28M	-506.78M	-524.21M	-184.46M	-61.18M

Atkore International Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATKR, the sentiment is Negative. The current price of 58 is below the 20-day moving average (MA) of 60.00, below the 50-day MA of 63.43, and below the 200-day MA of 87.94, indicating a bearish trend. The MACD of -2.38 indicates Negative momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATKR.

Atkore International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	72 Outperform	$3.25B	10.21	18.36%	1.15%	-2.94%	22.32%
POWL	70 Outperform	$2.07B	13.06	37.22%	0.61%	38.27%	105.52%
PLPC	67 Neutral	$692.08M	18.68	8.85%	0.57%	-11.34%	-41.23%
AEIS	66 Neutral	$3.27B	60.56	4.80%	0.46%	-10.49%	-57.78%
NVT	66 Neutral	$8.21B	25.28	8.73%	1.54%	0.78%	-41.54%
ATKR	62 Neutral	$2.00B	5.62	25.00%	2.21%	-12.01%	-38.33%
Sector *	62 Neutral	$7.70B	13.14	3.53%	3.32%	3.90%	-14.25%

Atkore International Group Corporate Events

Atkore Reports Significant Decline in Q1 2025 Results

Atkore Inc. reported a significant decline in its fiscal first quarter results for 2025, with net sales down by 17.1% to $661.6 million and net income dropping by 66.5% to $46.3 million compared to the previous year. Despite these setbacks, the company remains focused on executing its growth strategy and has adjusted its full-year outlook, while continuing to publish updates on its sustainability goals.