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Atkore International Group (ATKR)
NYSE:ATKR
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Atkore International Group
(NYSE:ATKR)
62Neutral
Atkore International Group (ATKR) vs. S&P 500 (SPY)
Market Cap
$2.25B
Dividend Yield1.97%
Average Volume (3M)885.35K
Price to Earnings (P/E)6.3
Beta (1Y)1.60
Revenue Growth-12.01%
EPS Growth-38.33%
CountryUS
Employees5,600
SectorIndustrials
Sector Strength72
IndustryIndustrial Goods
Share Statistics
EPS (TTM)10.33
Shares Outstanding34,398,716
10 Day Avg. Volume740,558
30 Day Avg. Volume885,354
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.74
Price to Cash Flow (P/CF)7.60
P/FCF Ratio7.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$72.67Price Target Upside15.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Atkore International Group Business Overview & Revenue Model
Company DescriptionAtkore International Group (ATKR) is a leading manufacturer and distributor of electrical raceway products, including conduits, cables, and fittings, as well as mechanical products and solutions for a wide variety of infrastructure projects. With a focus on serving the construction and industrial markets, Atkore operates through a network of manufacturing facilities and distribution centers, offering innovative solutions that ensure safety, reliability, and efficiency for its customers.
How the Company Makes MoneyAtkore 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.72
Positive
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.65
Positive
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.78
Positive
| 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 | ||||
| 310.44M | 351.38M | 388.11M | 388.75M | 576.29M | 284.47M | Total Assets |
| 2.96B | 3.02B | 2.94B | 2.60B | 2.21B | 1.56B | Total Debt |
| 923.85M | 951.20M | 884.43M | 832.30M | 800.41M | 843.66M | Net Debt |
| 613.40M | 599.82M | 496.32M | 443.55M | 224.12M | 559.19M | Total Liabilities |
| 1.45B | 1.48B | 1.47B | 1.35B | 1.35B | 1.18B | Stockholders Equity |
| 1.51B | 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
Negative
62.68
Price Trends
74.37
Negative
81.44
Negative
97.59
Negative
Market Momentum
-3.22
Negative
39.05
Neutral
83.23
Negative
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 62.68 is below the 20-day moving average (MA) of 65.34, below the 50-day MA of 74.37, and below the 200-day MA of 97.59, indicating a bearish trend. The MACD of -3.22 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 83.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATKR.
Atkore International Group Risk Analysis
Atkore International Group disclosed 49 risk factors in its most recent earnings report. Atkore International Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atkore International Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.42B | 17.44 | 37.25% | 0.28% | 15.76% | 61.64% | |
70 Outperform | $4.69B | 11.25 | 31.02% | 1.99% | 1.71% | -2.43% | |
70 Outperform | $7.65B | 12.67 | 14.34% | 1.05% | -2.53% | -4.03% | |
67 Neutral | $263.06M | 11.35 | 10.28% | ― | -15.19% | -42.33% | |
64 Neutral | $746.90M | 37.86 | -1.00% | 3.23% | -9.98% | -106.51% | |
62 Neutral | $2.25B | 6.28 | 25.00% | 1.97% | -12.01% | -38.33% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
ATKR
Atkore International Group
62.68
-106.06
-62.85%
CBT
Cabot
84.59
-1.91
-2.21%
EME
EMCOR Group
372.60
50.15
15.55%
HDSN
Hudson Tech
6.05
-5.30
-46.70%
WCC
Wesco International
158.20
-2.26
-1.41%
RYI
Ryerson Holdings
23.45
-6.64
-22.07%
Atkore International Group Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -21.03% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Atkore with several factors impacting performance negatively, including declines in organic volume, pricing pressures, and increased competition from imports. The company is focusing on shareholder returns, sustainability initiatives, and operational improvements as positive aspects, but the overall sentiment leans towards addressing significant challenges and adjusting expectations for the fiscal year.Highlights
Shareholder Returns
Atkore returned $50 million to shareholders through share repurchases in the first quarter, complementing their quarterly dividend payment.
Sustainability Initiatives
Published the fiscal year 2024 Sustainability Report, detailing ongoing initiatives and accomplishments toward 2025 goals. Released additional environmental product declarations for core products covering approximately half of global sales.
Operational Improvements
Improved operational performance in the Hobart, Indiana facility and the S&I team, with sequential improvement in S&I segment margins.
Lowlights
Decline in Organic Volume
Organic volume declined 5% in the first quarter compared to the strong volume performance in the first quarter of fiscal 2024.
Pricing Pressures
Average selling prices declined 12% during the quarter, particularly impacting PVC conduit and steel conduit products.
Increased Competition and Imports
Year-over-year volume increases in imported PVC conduit and steel conduit impacted market environment. Imports from countries with poorly enforced quantity limitations are growing.
Adjusted Financial Outlook
Full year 2025 adjusted EBITDA outlook lowered to approximately $400 million at the midpoint, reflecting larger than anticipated impacts from market challenges.
Challenges in Utility Scale Solar Market
Downstream constraints impacted volume in the utility scale solar market, despite improved operational performance.
Company Guidance
In the first quarter of fiscal year 2025, Atkore reported net sales of $662 million and an adjusted EBITDA of $99 million, both aligning with their expectations. However, organic volume declined by 5%, primarily due to challenging market conditions and increased competition, particularly for PVC and steel conduit products. The adjusted EPS was $1.63, near the top end of the company's outlook range. Atkore revised its full-year 2025 adjusted EBITDA guidance to approximately $400 million at the midpoint, reflecting the anticipated impacts of increased imports and competitive pressures. The first quarter also saw a $50 million share repurchase, underscoring Atkore's commitment to returning cash to shareholders. Despite these challenges, the company remains focused on growth initiatives and operational improvements, expecting low to mid-single-digit volume growth for the full year.Atkore International Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Atkore Reports Significant Decline in Q1 2025 Results
Negative
Feb 4, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
Atkore Appoints John Pregenzer as COO for Growth
Positive
Jan 10, 2025
Atkore Inc. has appointed John W. Pregenzer as Chief Operating Officer while he retains his role as President-Electrical. This move is aimed at enhancing productivity, growth, and operational excellence across the company, leveraging Pregenzer’s extensive experience in the industry to drive value for customers and shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.