Assessing ATI (ATI) Valuation After Mixed Fourth Quarter And Strong Full Year Results

Simply Wall St.02-17

ATI Inc. (ATI) is back in focus after reporting fourth quarter 2025 earnings, with sales of US$1,177.1 million and net income of US$96.6 million, alongside full year figures that also show higher ...

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(ATI) is back in focus after reporting fourth quarter 2025 earnings, with sales of US$1,177.1 million and net income of US$96.6 million, alongside full year figures that also show higher ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-ati/ati/news/assessing-ati-ati-valuation-after-mixed-fourth-quarter-and-s\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing ATI (ATI) Valuation After Mixed Fourth Quarter And Strong Full Year Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing ATI (ATI) Valuation After Mixed Fourth Quarter And Strong Full Year Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-17 12:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-ati/ati/news/assessing-ati-ati-valuation-after-mixed-fourth-quarter-and-s><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ATI Inc. (ATI) is back in focus after reporting fourth quarter 2025 earnings, with sales of US$1,177.1 million and net income of US$96.6 million, alongside full year figures that also show higher ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-ati/ati/news/assessing-ati-ati-valuation-after-mixed-fourth-quarter-and-s\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2065731478.USD","symbol_name":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-ati/ati/news/assessing-ati-ati-valuation-after-mixed-fourth-quarter-and-s","article_id":"2612266431","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2055000-choice1-main-header/1585186785008"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-ati/ati/news/assessing-ati-ati-valuation-after-mixed-fourth-quarter-and-s","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612266431","pubTimestamp":1771303211,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"ATI Inc. (ATI) is back in focus after reporting fourth quarter 2025 earnings, with sales of US$1,177.1 million and net income of US$96.6 million, alongside full year figures that also show higher sales and net income.\nSee our latest analysis for ATI.\nThe mixed fourth quarter earnings, with slightly higher sales but lower quarterly net income, come after a completed US$580.16 million buyback and a sharp shift in investor sentiment. This is reflected in a 15.75% 30 day share price return and a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2065731478.USD":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","BK4187":"航天航空与国防","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","LU1878469433.USD":"THREADNEEDLE (LUX) - AMERICAN SMALLER COMPANIES \"A\" (USD) ACC","BK4006":"钢铁","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","ATI":"阿利根尼"},"translate_title":"在第四季度好坏参半和全年业绩强劲后评估ATI(ATI)估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ATI":1.5},"content_text":"ATI Inc. (ATI) is back in focus after reporting fourth quarter 2025 earnings, with sales of US$1,177.1 million and net income of US$96.6 million, alongside full year figures that also show higher sales and net income. See our latest analysis for ATI. The mixed fourth quarter earnings, with slightly higher sales but lower quarterly net income, come after a completed US$580.16 million buyback and a sharp shift in investor sentiment. This is reflected in a 15.75% 30 day share price return and a very large 5 year total shareholder return of about 7x, suggesting momentum has been building rather than fading. If ATI’s run has you thinking about where else growth stories might be forming, it could be a good moment to check out our 25 power grid technology and infrastructure stocks as another way to find ideas tied to critical infrastructure themes. With ATI now trading close to analyst targets and showing stronger full year earnings, the key issue is whether recent momentum leaves more upside or if the market is already pricing in much of its future growth potential. AdvertisementMost Popular Narrative: 21.7% Overvalued ATI closed at $143.93 compared to a most followed fair value estimate of $118.25, which is built on detailed revenue, margin and cash flow assumptions.  Discrete investments in advanced alloys production, process automation, and supply chain partnerships are already yielding step-changes in manufacturing efficiency and output, evidenced by expanding High Performance Materials & Components margins (to >24%) and stronger incremental margin capture, accelerating EBITDA and free cash flow conversion.  Read the complete narrative. Want to see what kind of revenue path and profit margins are baked into that fair value? The narrative leans on multi year contract growth and richer mix assumptions. Behind the $118.25 fair value is a model that discounts ATI’s future cash flows at 7.80%, using long term revenue growth and margin stability as key building blocks rather than short term share price moves. On top of that, the narrative assumes continued strength in higher value alloys and components, with earnings and cash conversion doing much of the heavy lifting for the valuation rather than aggressive multiple expansion. With the market price sitting well above that fair value estimate and ATI carrying a valuation_result flag of overvalued, the gap will stand out to anyone comparing today’s share price to those modeled cash flows. Result: Fair Value of $118.25 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, those assumptions can be knocked off course if big aerospace customers pull back, or if heavy capital spending and tariffs squeeze margins more than expected. Find out about the key risks to this ATI narrative. Next Steps After considering this information, are you leaning bullish or cautious on ATI? Take a closer look at the full picture, including 2 key rewards and 2 important warning signs, and decide where you stand. Looking for more investment ideas? If ATI has sharpened your appetite for new ideas, do not stop here. Use the Simply Wall St Screener to line up your next round of candidates.  Target potential mispricings by running through our 54 high quality undervalued stocks built from fundamentals rather than hype. Prioritise staying power with the solid balance sheet and fundamentals stocks screener (44 results) that focuses on companies with stronger financial footing. Hunt for income opportunities using the 13 dividend fortresses that highlights higher yielding companies with staying power in mind.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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