Atkore Story

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ATKR -- USA Stock  

USD 40.61  1.98  5.13%

Atkore International is scheduled to announce its earnings today. The stock is currently experiencing an active upward rally. Atkore International Accounts Payable Turnover is relatively stable at the moment as compared to the past year. Atkore International reported last year Accounts Payable Turnover of 11.23. As of 11/19/2020, Operating Margin is likely to grow to 11.33, while Average Assets are likely to drop slightly above 1.5 B. As many baby boomers are still indifferent towards industrials space, it makes sense to sum up Atkore International Group as a unique choice for millenniums.
Published few days ago
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How much will Atkore International owe in December?
Atkore International currently holds 885.62 M in liabilities with Debt to Equity (D/E) ratio of 2.73, implying the firm greatly relies on financing operations through barrowing. This firm has a current ratio of 3.22, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of 8.05 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 12.48 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.12.
Atkore International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Atkore International, including all of Atkore International's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Atkore International assets, the company is considered highly leveraged. Understanding the composition and structure of overall Atkore International debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Atkore Total Liabilities

Atkore International liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Atkore International has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Atkore International balance sheet include debt obligations and money owed to different Atkore International vendors, workers, and loan providers. Below is the chart of Atkore short long-term liabilities accounts currently reported on its balance sheet.
You can use Atkore International Group financial leverage analysis tool to get a better grip on understanding its financial position

How important is Atkore International's Liquidity

Atkore International financial leverage refers to using borrowed capital as a funding source to finance Atkore International Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Atkore International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Atkore International's total debt and its cash.

A Deeper Perspective

The latest bullish price patterns experienced by current Atkore International shareholders could raise concerns from retail investors as the firm it trading at a share price of 34.15 on 1,207,431 in volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.35. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Atkore International partners.

Liabilities Breakdown

315 M
Current Liabilities
B
Long-Term Liabilities
Total Liabilities1.32 Billion
Current Liabilities315.03 Million
Long-Term Liabilities1.01 Billion
Tax Liabilities23.56 Million

Atkore International implied volatility may change after the spike

Kurtosis is down to 3.07. It may connote a possible volatility fall. Atkore International Group exhibits very low volatility with skewness of 1.22 and kurtosis of 3.07. However, we advise investors to further study Atkore International Group technical indicators to make sure all market info is available and is reliable.

Our Takeaway on Atkore International Investment

While some companies under the specialty industrial machinery industry are still a bit expensive, Atkore International may offer a potential longer-term growth to retail investors. To conclude, as of the 19th of November 2020, our research shows that Atkore International is a rather not too volatile investment opportunity with a below average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our concluding 30 days 'Buy-vs-Sell' recommendation on the enterprise is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Atkore International Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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