Fact based stock research
Allegheny Technologies Incorporated (NYSE:ATI)

US01741R1023

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Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Allegheny Technologies Incorporated stock research in summary

atimetals.com

ANALYSIS: With an Obermatt Combined Rank of 20 (worse than 80% compared with investment alternatives), Allegheny Technologies Incorporated (Steel, USA) shares have lower financial characteristics compared with similar stocks. Shares of Allegheny Technologies Incorporated are low in value (priced high) with a consolidated Value Rank of 8 (worse than 92% of alternatives). But they show above-average growth (Growth Rank of 57) and are safely financed (Safety Rank of 57, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 20, is a sell recommendation based on Allegheny Technologies Incorporated's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Allegheny Technologies Incorporated exhibits low value (Obermatt Value Rank of 8), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 57). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 57) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	8
Growth Rank	57
Safety Rank	57
Combined Rank	20

Country	USA
Industry	Steel
Index	Energy Efficient, Water Efficiency
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: Allegheny Technologies Incorporated

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	7	8	8
GROWTH
GROWTH	16	61	97	57
SAFETY
SAFETY	21	32	24	57
SENTIMENT
SENTIMENT	n/a	65	57	^new
360° VIEW
360° VIEW	n/a	23	34	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Allegheny Technologies Incorporated is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	7	8	8
GROWTH
GROWTH	16	61	97	57
SAFETY
SAFETY	21	32	24	57
COMBINED
COMBINED	6	12	25	20

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Allegheny Technologies Incorporated the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 8 (worse than 92% compared with alternatives), Allegheny Technologies Incorporated shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Allegheny Technologies Incorporated. Price-to-Sales is 41 which means that the stock price compared with what market professionals expect for future profits is higher than 59% of comparable companies, indicating a low value concerning Allegheny Technologies Incorporated's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 10, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Allegheny Technologies Incorporated. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 28 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 8, is a sell recommendation based on Allegheny Technologies Incorporated's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Allegheny Technologies Incorporated? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Allegheny Technologies Incorporated? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Allegheny Technologies Incorporated may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	63	46	41
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	5	9	37	28
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	32	12	1	10
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	7	8	8

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Allegheny Technologies Incorporated; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Allegheny Technologies Incorporated shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Allegheny Technologies Incorporated. Only Capital Growth has a good rank of 90, which means that currently professionals expect the company to grow its invested capital more than 32% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 42 which means that currently professionals expect the company to grow less than 58% of its competitors. Profit Growth with a rank of 32 and Stock Returns with a rank of 45 are also low (below 55% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Allegheny Technologies Incorporated is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	5	63	57	42
PROFIT GROWTH
PROFIT GROWTH	30	47	75	32
CAPITAL GROWTH
CAPITAL GROWTH	n/a	66	95	90
STOCK RETURNS
STOCK RETURNS	74	53	83	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	16	61	97	57

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Allegheny Technologies Incorporated.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company Allegheny Technologies Incorporated has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Allegheny Technologies Incorporated is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Allegheny Technologies Incorporated. Refinancing is at 65, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. Liquidity is also good at 78, meaning the company generates more profit to service its debt than 78% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 6, which means the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), Allegheny Technologies Incorporated has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Allegheny Technologies Incorporated could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Allegheny Technologies Incorporated and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	11	6	6
REFINANCING
REFINANCING	92	84	69	65
LIQUIDITY
LIQUIDITY	16	28	33	78
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	21	32	24	57

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Allegheny Technologies Incorporated and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	80	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	17	17	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	59	23	^new
MARKET PULSE
MARKET PULSE	n/a	66	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	65	57	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Allegheny Technologies Incorporated.
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