Fundamental analysis: ATI Physical Therapy, Inc. (ATIP)

Awarener score: 3.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very poor), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
ATI Physical Therapy, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 2.0

ATIP profit margins -on goods and services sold- are usually extremely poor. They stand bottom tier against rival companies.
Business profit on sales tends to be extremely poor. It's last-in-rank when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually extremely poor. They remain a disappointment compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be extremely poor in relation to total revenues. They're still bottom tier against similar companies.
Profits -before income taxes- are usually extremely poor considering total sales, and remain last-in-rank when measured against rivals.
Total net profit tends to be extremely poor when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 1.0

ATI Physical Therapy, Inc. has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

ATIP had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 1.5

ATI Physical Therapy, Inc. usually gets very poor returns on the resources it controls. It proves substantially worse when measured against peer firms.
The company normally gets very poor proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
There's usually bottom profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
In the past, got pauper returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's last-in-rank when measured against comparable enterprises.

Usage of Funds score: 3.0

ATIP on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands last-in-rank when measured against rival firms.
The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.1

ATI Physical Therapy, Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be a slight improvement compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are on a month and a half credit. It still ranks almost average when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes approximately two months from the purchase to charging customers. It happens to be slightly better than peers.
On average pays suppliers before a month from the purchase. It ranks weak when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 3.6

ATI Physical Therapy, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands worse than most similar companies.
The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still substantially worse when measured against industry firms.
In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up lacking compared to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains better than most peer firms.
In the past twelve months, the operating business lost some money. It happens to be weak when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very low earnings power ability when measured against the current stock price and financial position. Profitability is in dispute. It's still in a very weak position compared to peer companies.

Total score: 2.3

Company at a glance: ATI Physical Therapy, Inc. (ATIP)

Sector, industry: Healthcare, Medical Care Facilities

Market Cap: 0.03 billions

Revenues TTM: 0.64 billions

ATI Physical Therapy, Inc. operates as an outpatient physical therapy provider that specializes in outpatient rehabilitation and adjacent healthcare services in the United States. It offers a range of services to its patients, including physical therapy to treat spine, shoulder, knee, and neck injuries or pain; work conditioning and work hardening; and hand therapy, aquatic therapy, functional capacity assessment, and wellness programs. It also provides ATI worksite solutions comprising injury prevention programs, work-related injury assessment services, wellness offerings, and consultations for employers; proprietary electronic medical records (EMR) integration, caseload management, and continuing education in progressive therapies; and sports medicine, including onsite sports physical therapy, clinical evaluation and diagnosis, immediate and emergency care, nutrition programs, and concussion management services. The company offers outpatient physical therapy services under the ATI Physical Therapy name. As of December 31, 2021, it had 910 owned and 20 managed clinics. ATI Physical Therapy, Inc. was founded in 1996 and is based in Bolingbrook, Illinois.