Atkore International Gr (ATKR:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Atkore International Gr(ATKR:NYS)

Industrials:Diversified Industrials

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$20.64 (USD) 29/11/2018

Weighted Valuation
$29.00 (USD)

Overall Rating
Undervalued by 40.5%

Valuation Models Analyst Consensus: $29.00 (USD)
(in order of importance)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (ATKR:NYS USD)

Price 20.64
Range 20.57 – 22.15
52 week 17.50 – 28.20
Open 20.98
Vol / Avg. 812311/367137
Mkt cap 971.72M
P/E 8.32
Div/yield 0.00/0.00
EPS 2.48
Shares 47.08M
Beta 0.00

Company Description

Atkore International Group Inc is a diversified Industrials company. The business manufacturers and distributes electrical raceway products. Atkore International has two business segments, Electrical Raceway and Mechanical Products & Solutions. The Electrical Raceway segment manufactures products such as electrical conduits, armored cables, cable trays, and mounting systems. The Mechanical Products & Solutions segment manufacturers metal framing products and galvanized mechanical tubes. The company generates the majority of its revenue in the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ATKR:NYS

Using a discounted cash flow model we generated an intrinsic value of $42.64 (USD) for ATKR:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ATKR:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $42.64 1% 5% 1% 5%
WACC (or Ke) 12.47 $49.28 $37.27
Terminal Growth Rate 3.00 $38.14 $48.20
Tax Rate 0.18 $46.03 $39.25
Cash Flow 329,907,222 $39.87 $45.41
Capital Expenditures 1,874,200 $42.65 $42.63
Long Term Debt 631,471,000 $43.31 $41.97

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $38.83 (USD) for ATKR:NYS. We also generated a valuation of $32.42 (USD) using other metrics and comparables.
The comparable companies were Actuant (ATU:NYS), Kadant (KAI:NYS), EnPro Industries (NPO:NYS), Raven Industries (RAVN:NAS) and Standex International (SXI:NYS).

Company ATKR:NYS End Date Value
Earnings/Share $2.48 (USD)
Book Value/Share $1.57 (USD)
Sales/Share $29.89 (USD)
Cash Flow/Share $3.01 (USD)
EBITDA/Share $4.56 (USD)
Price Based on Comps Adjustment Factor (%)
$54.46 (USD) 0.0
$4.62 (USD) 0.0
$53.95 (USD) 0.0
$30.39 (USD) 0.0
$50.72 (USD) 0.0
ATKR:NYS Ratios Used Average Values ATU:NYS KAI:NYS NPO:NYS RAVN:NAS SXI:NYS
8.96 PE Ratio 21.96 0.00 30.18 2.48 28.05 27.13
12.29 PB Ratio 2.95 2.60 3.23 1.49 5.18 2.26
0.64 PS Ratio 1.80 1.22 1.85 0.91 3.85 1.19
6.40 PCF Ratio 15.66 13.59 14.89 10.46 24.82 14.54
7.18 EV to EBITDA 11.13 12.07 12.62 2.39 18.17 10.38

Multiples

Using a multiples approach we generated a valuation of  $29.03 (USD) for ATKR:NYS

Company ATKR:NYS End Date Value
Earnings/Share $2.48 (USD)
Book Value/Share $1.57 (USD)
Sales/Share $29.89 (USD)
Cash Flow/Share $3.01 (USD)
EBITDA/Share $4.56 (USD)
Price Based on Comps Adjustment Factor
$42.42 (USD) 0
$7.26 (USD) 0
$25.79 (USD) 0
$29.22 (USD) 0
$40.48 (USD) 0
Ratios Ratio Average
PE Ratio 17.11
PB Ratio 4.64
PS Ratio 0.86
PCF Ratio 9.71
EV to EBITDA 8.88

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ATKR:NYS for the last 2 years was  4.84

We ran the Adjusted Book Value for  ATKR:NYS and generated a book value of  $2.59 (USD)
By multiplying these we get an adjusted valuation of  $12.54 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for ATKR:NYS. The 2 analysts have a concensus valuation for ATKR:NYS for 2019 of $29.00 (USD).

ATKR:NYS Atkore International Gr

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2018-11-28

Current Price: 20.64 USD

Analyst Consensus
USD Millions 2019 2020
Mean EPS 3.12 3.57
# EPS Analysts 2 1
Mean Revenue 1,866.70 1,928.60
# Revenue Analysts 2 1
Mean Target Price 29.00
Mean Cash Flow 4.81 5.06
Mean EBITDA 291.60 308.50
Mean Net Income 150.50 171.10
Mean Debt Outstanding 586.00 473.80
Mean Tax Rate 26.00
Mean Growth Rate
Mean Capital Expenditure 34.70 35.70

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


%d bloggers like this: