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

• Market Cap: $3.17B
• Dividend Yield: 0.39%
• Average Volume (3M): 832.10K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.13
• Revenue Growth: 1.43%
• EPS Growth: 12.88%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.63
• Shares Outstanding: 82,663,925
• 10 Day Avg. Volume: 696,341
• 30 Day Avg. Volume: 832,096
• PEG Ratio: -36.24
• Price to Book (P/B): 11.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.62
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $40.00
• Price Target Upside: 3.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Atmus Filtration Technologies maintains a solid financial foundation with strong profitability and cash flow, although high leverage poses a risk. Technical indicators show short-term upward momentum but suggest caution due to potential overbought conditions. The valuation is reasonable, with some income from dividends. The earnings call and corporate events reflect resilience amid market challenges, leading to a moderately positive outlook.

Positive Factors

Operational Execution

Operational execution in the 18 months since IPO is building credibility for management.

Revenue Growth

ATMU continues to beat guidance and expectations despite a market downcycle, driving year-over-year sales growth.

Valuation

ATMU started the year at a ~30% discount to DCI, which has narrowed to ~10%, indicating strong relative value expansion.

Negative Factors

First-Fit Market Challenges

First-fit headwinds are getting tougher with volumes expected to be down mid-teens in the fourth quarter and remain challenging in the first half of the following year.

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. (ATMU) is a company that specializes in the development and production of high-performance filtration solutions. The company operates within the industrial and automotive sectors, providing essential filtration technologies that enhance the efficiency and sustainability of engines and equipment. Their core products include air, fuel, hydraulic, and lube filtration products, which are critical in maintaining the performance and longevity of engines across various applications.

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 a strong financial position with solid profitability and cash flow metrics. While the income statement shows robust margins, the balance sheet's high leverage poses potential risks. Nevertheless, the company’s impressive cash flow performance mitigates some concerns, indicating healthy cash generation and financial resilience. Continued focus on revenue growth and debt management will be key for future stability.

Income Statement

Atmus Filtration Technologies shows a solid performance with improving profitability metrics. The gross profit margin for TTM is 27.98%, indicating efficient cost management. The net profit margin stands at 11.23%, reflecting strong bottom-line control. Revenue growth, however, has seen slight fluctuations, with a TTM decline of approximately 1.42%, but a previous annual growth of 2.55%. The EBIT margin at 15.73% and EBITDA margin at 16.92% are indicative of robust operational efficiency.

Balance Sheet

The balance sheet depicts a moderate financial position, with a significant debt-to-equity ratio of 2.22, suggesting high leverage which could pose risks. However, the return on equity (ROE) is strong at 69.63%, showing excellent returns on shareholders' investments. The equity ratio is relatively low at 21.60%, indicating less reliance on equity financing.

Cash Flow

The cash flow statement presents a favorable outlook with a free cash flow growth rate of 61.62%, highlighting strong cash generation capabilities. Operating cash flow to net income ratio of 0.77 and a free cash flow to net income ratio of 0.50 reflect efficient cash conversion processes. These metrics underscore the company’s ability to generate cash relative to its net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.65B	1.67B	1.63B	1.56B	1.44B	1.23B
	Gross Profit
460.50M	462.10M	443.50M	361.40M	350.50M	309.40M
	EBIT
258.90M	266.20M	248.40M	191.30M	214.70M	199.00M
	EBITDA
278.40M	266.20M	273.70M	234.30M	239.60M	221.70M
	Net Income Common Stockholders
184.80M	185.60M	171.30M	128.00M	170.10M	142.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.20M	184.30M	168.00M	-9.40M	-9.80M	17.70M
	Total Assets
1.10B	1.19B	1.09B	879.40M	848.30M	786.90M
	Total Debt
629.10M	631.60M	625.90M	9.40M	9.80M	20.20M
	Net Debt
479.90M	447.30M	457.90M	18.80M	19.60M	37.90M
	Total Liabilities
982.40M	962.90M	1.01B	429.90M	411.10M	339.30M
	Stockholders Equity
121.80M	227.40M	80.70M	449.50M	437.20M	447.60M
Cash Flow		Free Cash Flow
91.90M	56.80M	143.20M	143.60M	170.40M	186.60M
	Operating Cash Flow
142.30M	105.40M	189.00M	177.00M	202.30M	213.10M
	Investing Cash Flow
-50.40M	-48.60M	-45.80M	-33.40M	-31.90M	-26.50M
	Financing Cash Flow
-53.70M	-35.80M	24.80M	-143.60M	-170.40M	-186.60M

Atmus Filtration Technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.55
• 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 ATMU, the sentiment is Positive. The current price of 38.55 is above the 20-day moving average (MA) of 35.49, above the 50-day MA of 35.91, and above the 200-day MA of 37.85, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 85.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	$5.72B	27.45	18.78%	0.53%	7.85%	15.78%
CECO	77 Outperform	$925.78M	20.30	18.34%	―	8.89%	278.44%
ATMU	75 Outperform	$3.17B	17.34	95.48%	0.39%	1.43%	12.88%
ZWS	75 Outperform	$6.21B	37.71	10.49%	0.92%	3.22%	38.39%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
ERII	64 Neutral	$670.89M	33.70	10.35%	―	10.93%	6.99%
PCT	38 Underperform	$1.67B	―	-67.71%	―	―	-180.10%

Atmus Filtration Technologies, Inc. Corporate Events

Atmus Filtration Appoints New Chief Legal Officer

On May 8, 2025, Atmus Filtration Technologies Inc. appointed Laura Heltebran as Senior Vice President, Chief Legal Officer & Corporate Secretary, effective May 13, 2025. Heltebran, who previously held significant legal positions at Wheels Up and Hilton Worldwide, will report to CEO Steph Disher and join the Atmus Leadership Team. Her appointment is expected to contribute to the company’s continued growth and success, leveraging her extensive legal experience and leadership skills.

The most recent analyst rating on (ATMU) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Atmus Filtration Technologies, Inc. stock, see the ATMU Stock Forecast page.

Spark’s Take on ATMU Stock

According to Spark, TipRanks’ AI Analyst, ATMU is a Outperform.

Atmus Filtration Technologies presents a solid financial foundation with strong profitability and cash flow, albeit with risks from high leverage. Technical indicators are mixed, suggesting cautious optimism. Valuation is reasonable, supported by a small dividend. The earnings call and recent corporate events align with strategic resilience amid market challenges, leading to a moderately positive outlook.

To see Spark’s full report on ATMU stock, click here.

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.