ATKR

Atkore Inc

Industrial/Transportation


Presented:09/20/2023
Price:$149.04
Cap:$5.63B
Current Price:$85.54
Cap:$3.07B

Presented

Date09/20/2023
Price$149.04
Market Cap$5.63B
Ent Value$6.57B
P/E Ratio7.92x
Book Value$37.12
Div Yield0%
Shares O/S37.79M
Ave Daily Vol369,941
Short Int13.66%

Current

Price$85.54
Market Cap$3.07B
Atkore, Inc. engages in the manufacture of electrical raceway products. It operates through the Electrical, and Safety and Infrastructure segments. The Electrical segment produces products used in the construction of electrical power systems such as conduit, cable, and installation accessories. The Safety and Infrastructure segment designs and creates solutions including metal framing, mechanical pipe, perimeter security, and cable management for the protection and reliability of critical infrastructure. The company was founded in 1959 and is headquartered in Harvey, IL.

Publicly traded companies mentioned herein: Atkore Inc (ATKR)

Highlights

The presenter is long shares of Atkore Inc (ATKR), a construction products business that has been a major COVID beneficiary with EBITDA growing from $327MM in 2020 to $1.3B in 2022. Bears question how much of that growth can be sustained as pricing comes down, but the presenter believes this is a better business than it was a few years ago and continues to improve. He is also bullish on management’s capital allocation (accretive M&A, aggressive buybacks), and expects the stock to rerate from the current 6.5x consensus 2024 EBITDA and 9x consensus 2024 earnings. Assuming that ATKR meets or exceeds its $18 2025 EPS target, he underwrites 15x earnings to create upside to $270 per share compared to the current $152 share price. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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