ATI currently trades at $120.36 and has been a dream stock for shareholders. It’s returned 554% since January 2021, blowing past the S&P 500’s 82.1% gain. The company has also beaten the index over the past six months as its stock price is up 37.1% thanks to its solid quarterly results.
Is now still a good time to buy ATI? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Does ATI Spark Debate?
With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE: ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.
Two Positive Attributes:
1. Increasing Free Cash Flow Margin Juices Financials
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, ATI’s margin expanded by 19.7 percentage points over the last five years. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality. ATI’s free cash flow margin for the trailing 12 months was 9.7%.
2. New Investments Bear Fruit as ROIC Jumps
ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Fortunately, ATI’s ROIC has increased significantly over the last few years. its rising ROIC is a good sign and could suggest its competitive advantage or profitable growth opportunities are expanding.
One Reason to be Careful:
Long-Term Revenue Growth Disappoints
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, ATI’s 6.5% annualized revenue growth over the last five years was mediocre. This wasn’t a great result compared to the rest of the industrials sector, but there are still things to like about ATI.
Final Judgment
ATI’s positive characteristics outweigh the negatives, and with its shares outperforming the market lately, the stock trades at 33.2× forward P/E (or $120.36 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than ATI
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
