* Note: Prices are in Million (M) USD.
Description:
Atkore Inc. manufactures and distributes Electrical Conduit Products and Mechanical Products and Solutions (MP&S) in the United States and internationally. The company is headquartered in Harvey, Illinois.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $331 M
Debt : $911 M
EBITDA : $286 M
Net Debt (Debt - Cash): $580 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Electrical equipment & parts
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.68
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $240 M
Average Revenue: $2,197 M
Revenue Converted To Free Cash Flow (%): 10.9%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-09-30): $3,202 M
Revenue 4 Years Ago (2020-09-30): $1,765 M
Last 5 Years Average Revenue Growth: 16%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-09-30): $37 M
Share Count 5 Years Ago (2020-09-30): $48 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.76
Trailing 12-Month Earnings Per Share (EPS): $3.43
Average Earnings Per Share (EPS): $4.59
Dividend Per Share (DPS): $1
Payout Ratio: 28%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: 32.3%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $58
52-Week Low: $50
Threshold Price (15% Above 52-Week Low): $57
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,851 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Atkore International Group Inc (ATKR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
35.83 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 9 Years Avg P/E (11.96)
× EPS ($4.59) = $54.90.
Last 9 Years Avg PE 11.96, Fair Value PE 15, Industry Based PE 17, Growth Based PE 16, RCFC Based PE 18.73, ROE Based PE 35.83, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.80. Value-Trades has assined P/E value 18.80. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.59.
The fair value of Atkore International Group Inc (ATKR) stock should be (18.80 x $4.59) = $86.29.
