Last Updated: 18 Sep 2024
Executive Summary
Atmus Filtration Technologies Inc. (ATMU) is a leading manufacturer of filtration systems for the automotive industry. The company has a strong financial position with a market capitalization of $3.037 billion, EBITDA of $283.9 million, and EPS of $2.08. ATMU's stock is currently trading at $35.87, below its analyst target price of $36.58. The company's strong fundamentals and positive analyst outlook make it a compelling investment opportunity.
Company Overview
Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration systems for the automotive industry. The company's products include air filters, oil filters, and fuel filters. ATMU's customers include major automakers such as Ford, General Motors, and Toyota. The company has a global presence with operations in North America, Europe, and Asia.
Fundamental Analysis
ATMU's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 10% over the past five years. In 2023, ATMU reported revenue of $1.655 billion and EPS of $2.08. The company's gross profit margin is 21.7%, and its operating margin is 17.4%. ATMU has a strong balance sheet with $450 million in cash and equivalents and no long-term debt.
Technical Analysis
ATMU's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought. However, the stock's moving average convergence divergence (MACD) is positive, which indicates that the stock is still in a bullish trend.
Short Term Outlook
ATMU's stock is expected to continue to trend higher in the short term. The stock's technical indicators are positive, and the company's fundamentals are strong. The stock's analyst target price of $36.58 is a potential upside target for the stock.
Long Term Outlook
ATMU's long-term outlook is also positive. The company's strong financial position and its position as a leading supplier to the automotive industry make it well-positioned for continued growth. The company's focus on innovation and new product development should also drive long-term growth.
Analyst Recommendations
Analysts are bullish on ATMU's stock. Two analysts have a "Strong Buy" rating on the stock, and five analysts have a "Buy" rating. The average analyst target price is $36.58.
