Atmus Filtration Technologies Inc. Common Stock (ATMU)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $68 million in annual free cash flow (1.4% yield on market cap)
• High return on equity of 68.5% demonstrating efficient capital deployment
• Altman Z-Score of 4.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($16) with negative 279% margin of safety—limited downside protection

AI Analysis

Atmus Filtration Technologies Inc. Common Stock is a small-cap consumer cyclical company valued at $5.0 billion. The business generates $1.8 billion in annual revenue with a 2.7% net margin and $68 million in free cash flow. From a quality standpoint, Atmus shows healthy Altman Z-Score of 4.5 and extraordinary 68% return on equity. On valuation, the stock is reasonably priced at 24.5x earnings, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 9.8% and profit growth of 19.7%. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $68 million in annual free cash flow (1.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer