Leroykahmeng
10-10

$Atkore Inc.(ATKR)$ Here is what you need to know on my most recent BUYS!!! ATKORE Analysis!

Many of you may not have heard of this company before so I will summarise and make it easy to understand for all my value investors.

Atkore is a leading manufacturer and distributor of electrical, mechanical, and safety products.

So basically their main business models are

1.⁠ ⁠Manufacturing and distribution

2.⁠ ⁠Product innovation and development

3.⁠ ⁠Strategic acquisitions and partnerships

They have fall 60% to 70% from their ATH, due to missing earnings and of course due to the slow economic cause by the inflation.

So I dived deep into their growth and valuation instantly.

8 Pillars showed me 8 check marks in green, and it tingle my curiosity.

Looking at their last 10years Revenue, FCF, Net Income. There was a spike in the last 5 years due to certain key market factors:

1. Higher demand for data centres

2.⁠ ⁠Expansion of 5G Networks

3.⁠ ⁠Smart Building Technologies

4.⁠ ⁠Energy Efficiency Initiatives

However, from their last earning report have caused quite a stir in the stock prices.

The question to ask is will this company last for another 10years?

Knowing that this is a cyclical stock and it’s very dependent on the economy and as inflation increased, cost have went up significantly compared to the zero interest years.

I’m not expecting interest to go back to zero, but I do believe as Feds lowered rates, this gives more confidence for the company to expand in the areas of their business. Be it their product/services/manufacturing.

But I do keep in mind that rates at current level is still pretty high IMO. So I do expect certain roller coaster on the stock price over time.

Assumptions that I have made can be found in the photo attached.

Even with the lowest assumption made, current stock price is about 30% below the intrinsic value.

Giving me much confidence that I have adequate safety of margin to continue buying the stock if it fall downwards over time.

“Every investment is a present value of all future cash flow”

My average price is ard $87, if price falls another 15% - 20%, I will definitely be looking to buy more to average down the prices.

Thank you for reading and welcome feedbacks so I can better provide content for all my readers!

Cheers!

Modified in.10-10
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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