ATI (ATI) AI Stock Analysis

• Market Cap: $13.45B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.69
• Revenue Growth: 7.75%
• EPS Growth: 6.84%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.85
• Shares Outstanding: 135,863,660
• 10 Day Avg. Volume: 2,039,309
• 30 Day Avg. Volume: 1,716,601
• PEG Ratio: -1.36
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 42.56
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 13.24
• Enterprise Value/Ebitda: 17.06
• 1Y Price Target: $113.43
• Price Target Upside: 14.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $110.00 ▲(11.14% Upside)

ATI's strong earnings call performance and robust financials are the primary drivers of its overall score. The company's raised guidance and significant growth in key sectors bolster its outlook. However, technical indicators suggest caution due to overbought conditions, and the high P/E ratio indicates potential overvaluation. Continued focus on debt reduction and maintaining cash flow growth will be crucial for sustaining positive momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for ATI's products, particularly in aerospace and defense, supporting long-term business stability.

Market Position

Dominance in aerospace and defense sectors strengthens ATI's market position, ensuring sustained demand and competitive advantage.

Cash Flow Generation

Improved cash flow generation enhances ATI's financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Debt Levels

While leverage has improved, ongoing reliance on debt could limit financial flexibility and increase risk during downturns.

Contract Restructuring

Restructuring contracts can impact revenue stability, potentially affecting short-term financial performance and predictability.

Moderation in Defense Shipments

Moderation in defense shipments could slow revenue growth, affecting short-term financial performance despite overall demand strength.

ATI Business Overview & Revenue Model

Company Description

ATI Inc. manufactures and sells specialty materials and components worldwide. The company operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The segment serves aerospace and defense, medical, and energy markets. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products, and titanium products. This segment offers its solutions to the energy, aerospace and defense, automotive, and electronics markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was founded in 1960 and is headquartered in Dallas, Texas.

How the Company Makes Money

ATI generates revenue through the sale of its high-performance materials, primarily focusing on aerospace and defense sectors, which represent a significant portion of its business. The company earns money by supplying these specialized materials to major OEMs (Original Equipment Manufacturers) and other manufacturers who require high-quality materials for their products. Key revenue streams include contracts for aerospace components, sales of titanium and alloy products, and services related to material processing. Additionally, ATI has established strategic partnerships with leading companies in the aerospace and energy sectors, enhancing its market position and enabling it to capitalize on growing demand for advanced materials. The company's focus on innovation, including research and development of new materials and processes, also contributes to its ability to maintain competitive pricing and secure long-term contracts.

ATI Financial Statement Overview

Summary

ATI exhibits strong financial performance with consistent revenue growth and healthy profit margins. The company has improved its leverage position, although further debt reduction could enhance financial stability. Cash flow generation has significantly improved, supporting operational and strategic initiatives. Continued focus on cost management and debt reduction will be key to sustaining this positive trajectory.

Income Statement

ATI's income statement shows strong performance with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.65%. The company maintains healthy margins, with a TTM gross profit margin of 21.43% and a net profit margin of 9.71%. The EBIT and EBITDA margins are also robust at 10.98% and 16.34%, respectively. This indicates effective cost management and operational efficiency. However, the slight decline in EBIT margin from the previous year suggests potential pressure on operating costs.

Balance Sheet

ATI's balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 1.12 in the TTM, indicating a reduction in leverage compared to previous years. The return on equity is strong at 24.80%, showcasing effective utilization of shareholder funds. However, the equity ratio stands at 34.12%, suggesting a moderate reliance on debt financing. Continued focus on reducing debt could enhance financial stability.

Cash Flow

ATI's cash flow statement demonstrates significant improvement, with a TTM free cash flow growth rate of 115.25%. The operating cash flow to net income ratio is 0.64, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.75 further supports the company's ability to generate cash. Despite these strengths, maintaining consistent cash flow growth remains crucial for future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.36B	4.17B	3.84B	2.80B	2.98B
Gross Profit	1.00B	913.50M	826.30M	714.20M	334.00M	292.80M
EBITDA	778.90M	670.70M	539.10M	678.50M	492.50M	198.40M
Net Income	444.80M	367.80M	410.80M	323.50M	184.60M	-1.57B
Balance Sheet
Total Assets	5.00B	5.23B	4.99B	4.45B	4.29B	4.03B
Cash, Cash Equivalents and Short-Term Investments	372.20M	721.20M	743.90M	584.00M	687.70M	645.90M
Total Debt	1.91B	1.90B	2.18B	1.75B	1.84B	1.57B
Total Liabilities	3.18B	3.28B	3.50B	3.29B	3.45B	3.39B
Stockholders Equity	1.71B	1.85B	1.37B	1.05B	685.60M	521.10M
Cash Flow
Free Cash Flow	506.70M	168.10M	-114.80M	94.00M	-136.50M	30.40M
Operating Cash Flow	679.40M	407.20M	85.90M	224.90M	16.10M	166.90M
Investing Cash Flow	-130.40M	-159.60M	-193.20M	-126.70M	-77.30M	-128.70M
Financing Cash Flow	-606.80M	-260.40M	267.20M	-201.90M	103.00M	116.90M

ATI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATI, the sentiment is Positive. The current price of 98.97 is above the 20-day moving average (MA) of 87.31, above the 50-day MA of 81.84, and above the 200-day MA of 71.64, indicating a bullish trend. The MACD of 4.97 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 88.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATI.

ATI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	―	$11.75B	15.82	26.06%	0.90%	15.71%	29.60%
ATI	―	$13.45B	31.92	25.43%	―	7.75%	6.84%
CRS	―	$15.74B	38.64	23.16%	0.25%	2.40%	81.54%
AZZ	―	$3.00B	9.60	27.28%	0.74%	1.55%	701.41%
WOR	―	$2.79B	26.24	11.50%	1.25%	-39.38%	175.22%
ESAB	―	$7.09B	29.50	13.86%	0.31%	1.19%	-7.78%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ATI Corporate Events

ATI Inc. Reports Strong Q3 2025 Earnings Growth

ATI Inc., a global leader in high performance materials and solutions, primarily serves the aerospace and defense sectors, along with electronics, medical, and specialty energy markets. The company is renowned for its innovative materials science solutions that enable advanced applications across various industries.

ATI Inc. Reports Strong Earnings and Raises Guidance

ATI Inc. recently held its earnings call, revealing a robust financial and operational performance, particularly in the aerospace and defense sectors. The company reported significant growth, leading to an increased full-year guidance. While there are expectations of moderation in defense shipments and some revenue impact due to contract restructuring, the overall sentiment remains highly positive.

ATI Establishes $125 Million Securitization Facility

On September 19, 2025, ATI Specialty Materials, LLC, a subsidiary of ATI Inc., established a three-year, $125 million accounts receivable securitization facility. This move involves selling or contributing receivables to a special purpose entity, which can borrow up to $125 million. As of September 25, 2025, $80 million was outstanding under the facility, which is expected to enhance ATI’s financial operations and flexibility.

The most recent analyst rating on (ATI) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on ATI stock, see the ATI Stock Forecast page.

ATI Announces CFO Retirement and Board Expansion

On September 9, 2025, ATI Inc. announced the upcoming retirement of Donald P. Newman, its Executive Vice President, Finance and Chief Financial Officer, effective March 1, 2026. To ensure a smooth transition, Newman will provide consulting services for ten months post-retirement. Concurrently, ATI’s Board of Directors expanded from ten to twelve members, appointing Elizabeth Lund and Jean Lydon-Rodgers as independent directors, effective November 1, 2025. Both bring extensive experience in aerospace and defense, enhancing the board’s expertise. These changes reflect ATI’s strategic focus on leadership continuity and strengthening its market position.

The most recent analyst rating on (ATI) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on ATI stock, see the ATI Stock Forecast page.

ATI Inc. Reports Strong Q2 2025 Financial Results

ATI Inc. is a global producer of high-performance materials and solutions, primarily serving the aerospace and defense sectors, as well as critical applications in electronics, medical, and specialty energy industries.

ATI Inc. Earnings Call Highlights Growth and Challenges

ATI Inc. Reports Robust Earnings Amidst Market Challenges