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Atmus Filtration Technologies, Inc. (ATMU)
:ATMU
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Atmus Filtration Technologies, Inc.
(NYSE:ATMU)
71Outperform
Positive Factors
Guidance and Expectations
Management raised the low-end of 2024 revenue guidance by $25mn.
Revenue Growth
The company has continued share gains, pricing improvements, and benefits from prior year comparisons, driving year-over-year sales growth.
Negative Factors
Market Conditions
Both the Aftermarket and First Fit markets are in a synchronized downturn, which is atypical compared to historical trends.
Production Risks
Tariff considerations present overhang risk on uncertainty heading into the transition to a Trump administration, with about 30% of revenue from products made in Mexico.
Atmus Filtration Technologies, Inc. (ATMU) vs. S&P 500 (SPY)
Market Cap
$3.08B
Dividend Yield0.4%
Average Volume (3M)1.07M
Price to Earnings (P/E)16.8
Beta (1Y)1.22
Revenue Growth2.55%
EPS Growth8.40%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength65
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)2.22
Shares Outstanding82,866,170
10 Day Avg. Volume1,080,036
30 Day Avg. Volume1,066,344
Financial Highlights & Ratios
PEG Ratio1.99
Price to Book (P/B)N/A
Price to Sales (P/S)1.86
Price to Cash Flow (P/CF)38.90
P/FCF Ratio38.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.75Price Target Upside20.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Atmus Filtration Technologies, Inc. Business Overview & Revenue Model
Company DescriptionAtmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. It offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, and coolants, as well as fuel additives. The company's products are used in on-highway and off-highway commercial vehicles; and agriculture, construction, mining, and power generation vehicles and equipment. It serves original equipment manufacturers, dealers/distributors, and end-users. The company was founded in 1958 and is headquartered in Nashville, Tennessee. Atmus Filtration Technologies Inc. operates as a subsidiary of Cummins Inc.
How the Company Makes MoneyAtmus Filtration Technologies, Inc. generates revenue primarily through the sale of its filtration products and technologies. The company's key revenue streams include the manufacturing and distribution of filters for automotive and industrial applications. Atmus serves a diverse range of customers, including original equipment manufacturers (OEMs), aftermarket clients, and industrial sector companies. By leveraging its expertise in filtration solutions, Atmus establishes significant partnerships with leading automotive and industrial companies, contributing to its earnings. Additionally, the company may engage in research and development activities to innovate and expand its product offerings, further driving revenue growth.
Atmus Filtration Technologies, Inc. Financial Statement Overview
Summary
Atmus Filtration Technologies demonstrates strong revenue growth and profitability, with effective operational efficiency. However, high debt levels pose a potential risk, highlighting the importance of careful management of financial leverage. Cash flow is stable, albeit with some room for improvement in free cash flow growth. Overall, the company's financial health is robust, with strengths in revenue and profit margins, but it must manage leverage effectively to mitigate risks.Income Statement
Atmus Filtration Technologies, Inc. shows a solid financial performance with a consistent increase in revenue over the years, reflecting a healthy revenue growth rate. The gross profit margin is stable, indicating good cost management. The EBIT and EBITDA margins are strong, reflecting effective operational efficiency. The net profit margin is also healthy, showing good profitability. Overall, the income statement indicates a positive growth trajectory and profitability.82
Very Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, which indicates a significant reliance on debt financing. However, the company's return on equity is strong, demonstrating efficient use of shareholder funds to generate profits. The equity ratio is relatively low, suggesting a high level of liabilities compared to assets, which could be a risk if not managed properly. Overall, the balance sheet shows potential risks due to leverage but demonstrates efficient use of equity.65
Positive
Cash Flow
Operating cash flow remains positive, although there is a decrease in free cash flow growth, which could be a concern for future cash liquidity. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. The free cash flow to net income ratio is also favorable, showing that the company is generating adequate free cash flow relative to net income. Overall, cash flow is stable but shows potential areas for improvement in free cash flow growth.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.67B | 1.63B | 1.56B | 1.44B | 1.23B | Gross Profit |
| 462.10M | 443.50M | 361.40M | 350.50M | 309.40M | EBIT |
| 266.20M | 248.40M | 191.30M | 214.70M | 199.00M | EBITDA |
| 266.20M | 273.70M | 234.30M | 239.60M | 221.70M | Net Income Common Stockholders |
| 185.60M | 171.30M | 128.00M | 170.10M | 142.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 184.30M | 168.00M | -9.40M | -9.80M | 17.70M | Total Assets |
| 1.19B | 1.09B | 879.40M | 848.30M | 786.90M | Total Debt |
| 592.50M | 625.90M | 9.40M | 9.80M | 20.20M | Net Debt |
| 408.20M | 457.90M | 18.80M | 19.60M | 37.90M | Total Liabilities |
| 962.90M | 1.01B | 429.90M | 411.10M | 339.30M | Stockholders Equity |
| 227.40M | 80.70M | 449.50M | 437.20M | 447.60M |
| Cash Flow | Free Cash Flow | |||
| 56.80M | 143.20M | 143.60M | 170.40M | 186.60M | Operating Cash Flow |
| 105.40M | 189.00M | 177.00M | 202.30M | 213.10M | Investing Cash Flow |
| -48.60M | -45.80M | -33.40M | -31.90M | -26.50M | Financing Cash Flow |
| -35.80M | 24.80M | -143.60M | -170.40M | -186.60M |
Atmus Filtration Technologies, Inc. Technical Analysis
Positive
37.21
Price Trends
39.15
Negative
40.23
Negative
37.00
Positive
Market Momentum
-0.38
Negative
44.83
Neutral
29.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATMU, the sentiment is Positive. The current price of 37.21 is below the 20-day moving average (MA) of 37.54, below the 50-day MA of 39.15, and above the 200-day MA of 37.00, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATMU.
Atmus Filtration Technologies, Inc. Risk Analysis
Atmus Filtration Technologies, Inc. disclosed 46 risk factors in its most recent earnings report. Atmus Filtration Technologies, Inc. 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
Atmus Filtration Technologies, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $504.55M | 3.40 | 10.41% | 8.77% | -11.02% | -51.66% | |
73 Outperform | $43.36B | 11.12 | 41.27% | 2.26% | 0.14% | 444.36% | |
71 Outperform | $3.08B | 16.76 | 120.48% | 0.40% | 2.55% | 8.40% | |
68 Neutral | $16.44B | 18.30 | 20.69% | 3.40% | 1.71% | -30.78% | |
62 Neutral | $6.29B | 19.05 | 6.46% | 1.54% | -11.10% | -46.32% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
54 Neutral | $1.93B | ― | -3.92% | 3.02% | -2.57% | -248.28% |
* Industrials Sector Average
Performance Comparison
ATMU
Atmus Filtration Technologies, Inc.
37.87
5.56
17.21%
BWA
BorgWarner
29.12
-4.86
-14.30%
CMI
Cummins
319.99
31.52
10.93%
DAN
Dana Holding
13.68
1.68
14.00%
GPC
Genuine Parts Company
120.07
-24.31
-16.84%
TEN
Tsakos Energy Navigation
17.15
-7.60
-30.71%
Atmus Filtration Technologies, Inc. Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: -4.91% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with strong financial performance and strategic achievements, such as margin expansion and successful product launches, offset by challenges including soft market conditions, restructuring costs, and persistent weakness in China.Highlights
Completion of Common Share Exchange
In March 2024, Atmus Filtration Technologies completed a common share exchange, becoming a fully independent company for the first time in its history. This move has accelerated their growth strategy and market outperformance.
Strong Financial Performance
Fourth quarter sales increased by 1.8% to $407 million, and adjusted EBITDA was $78 million or 19.1%, compared to $71 million or 17.9% in the prior period.
Adjusted EBITDA Margin Expansion
Since 2022, adjusted EBITDA margin expanded by 410 basis points, demonstrating the success of supply chain transformation and cost reduction efforts.
Fleetguard Brand Expansion
Expansion of product coverage with the Fleetguard brand through new channels and high-growth geographies, including a successful Latin American customer event.
Launch of NanoNet N3
Expanded technology leadership in fuel filtration with the launch of the next-generation NanoNet N3 media, enabling compact filter designs and superior service life.
Lowlights
Soft End Market Conditions
Despite strong outperformance, Atmus is experiencing soft end market conditions in both aftermarket and first fit markets, leading to restructuring actions.
Restructuring Costs
Incurred $4 million in one-time restructuring costs associated with employee severance in response to soft market conditions in the US and China.
Continued Weakness in China
Anticipated weak market conditions in China to persist, impacting growth and requiring structural actions in the region.
Foreign Exchange Headwinds
Foreign exchange impacted sales and is expected to result in approximately a 2% revenue headwind for 2025.
Company Guidance
During the Atmus Filtration Technologies fourth quarter and full year 2024 earnings call, CEO Steph Disher outlined the company's strong financial performance and forward-looking strategies. The company reported a 1.8% increase in fourth-quarter sales to $407 million, with an adjusted EBITDA of $78 million or 19.1%, and adjusted earnings per share of $0.58. For the full year, sales rose by 2.5% to $1.67 billion, and adjusted EBITDA was $330 million, with an adjusted EBITDA margin of 19.7%. Despite soft market conditions, Atmus outperformed the market by approximately two percentage points in 2024 and anticipates global market growth of flat to 4% in 2025. The company also reported repurchasing $20 million of stock and has $130 million remaining under board authorization. In 2025, Atmus expects adjusted EBITDA margins to remain in the range of 19% to 20%, with adjusted EPS projected between $2.35 and $2.60. The company's growth strategy includes expanding its share in the first fit market, enhancing aftermarket growth, transforming the supply chain, and entering the industrial filtration market, all while navigating ongoing global economic uncertainties.Atmus Filtration Technologies, Inc. Corporate Events
Dividends
Atmus Filtration Declares Quarterly Cash Dividend
Positive
Feb 19, 2025
On February 19, 2025, Atmus Filtration Technologies announced that its Board of Directors declared a quarterly cash dividend of $0.05 per common share, to be paid on March 19, 2025, to shareholders on record as of March 4, 2025. This move reflects the company’s commitment to delivering shareholder value, potentially strengthening its market position and signaling financial stability to stakeholders.
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.