Atmus Filtration Technologies, Inc. (ATMU) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.15
• Revenue Growth: 2.55%
• EPS Growth: 8.40%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 2.22
• Shares Outstanding: 82,663,925
• 10 Day Avg. Volume: 1,004,278
• 30 Day Avg. Volume: 1,048,095
• PEG Ratio: 1.78
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.86
• Price to Cash Flow (P/CF): 38.90
• P/FCF Ratio: 38.90
• 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: $41.80
• Price Target Upside: 26.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Atmus Filtration Technologies, Inc. shows a robust financial performance with strengths in revenue growth and profitability, balanced by high leverage risks. Technical indicators suggest bearish trends, which could pose short-term challenges. Valuation metrics indicate fair valuation, while the earnings call provides a stable outlook with strategic growth initiatives. Overall, the stock demonstrates a solid foundation but needs to carefully manage leverage and market conditions.

Positive Factors

Financial Performance

ATMU continues to beat guidance and expectations despite a market downcycle.

Market Position

ATMU is well positioned to leverage with share gains.

Negative Factors

Market Conditions

Both the Aftermarket and First Fit markets are in a synchronized downturn, which is atypical compared to historical trends.

Tariff Risk

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. Business Overview & Revenue Model

Company Description

Atmus 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 Money

Atmus Filtration Technologies, Inc. generates revenue through the sale of its filtration products to original equipment manufacturers (OEMs) and aftermarket customers. The company's key revenue streams include direct sales of filtration systems and components tailored for specific industrial applications and automotive engines. Additionally, Atmus engages in partnerships with major manufacturers to integrate their filtration solutions into new engine designs, which ensures a consistent demand for their products. Aftermarket sales provide a steady stream of revenue as customers require regular replacements and upgrades to maintain optimal engine performance. Furthermore, the company's ongoing investment in research and development allows it to innovate and offer cutting-edge filtration technologies, thereby sustaining its competitive edge and market share.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 33.15
• 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 ATMU, the sentiment is Negative. The current price of 33.15 is below the 20-day moving average (MA) of 34.62, below the 50-day MA of 36.82, and below the 200-day MA of 37.35, indicating a bearish trend. The MACD of -1.23 indicates Negative momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 36.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATMU.

Atmus Filtration Technologies, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSS	78 Outperform	$4.50B	21.00	19.77%	0.68%	8.06%	36.93%
ZWS	78 Outperform	$5.25B	33.94	9.96%	1.09%	2.35%	44.23%
ERII	71 Outperform	$817.73M	37.23	10.73%	―	12.93%	7.08%
ATMU	64 Neutral	$2.74B	14.93	120.48%	0.45%	2.55%	8.40%
CECO	63 Neutral	$661.02M	52.75	5.39%	―	2.40%	-0.38%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
PCT	38 Underperform	$1.15B	―	-96.27%	―	―	-180.10%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Filtration Declares Quarterly Cash Dividend

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.