Atmus Filtration Technologies Inc. (ATMU) Fundamental Analysis: Bull vs. Bear Case

ATMU

Atmus Filtration Technologies Inc.

Fundamental data last updated:June 3, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Pollution & Treatment Controls

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/14/2026

Business Summary

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. It offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, and coolants, as well as fuel additives. The company's products are used in on-highway and off-highway commercial vehicles; and agriculture, construction, mining, and power generation vehicles and equipment. It serves original equipment manufacturers, dealers/distributors, and end-users. The company was founded in 1958 and is headquartered in Nashville, Tennessee. Atmus Filtration Technologies Inc. operates as a subsidiary of Cummins Inc.

VALUATION

P/E

18.47 Market Cap ($M USD)

$3.90B

Forward P/E

13.73 PEG

0.40 PRICE TO SALES

2.14 PRICE TO BOOK

9.66 EV / EBITDA

13.49 5-Year Average P/E

Free Cash Flow Yield

4.05%

DCF Value

$38.76

Graham Number

$16.97

Price to FCF

24.70 EV to FCF

30.07 Earnings Yield

5.41%

FCF Yield

4.05%

DIVIDEND

Yield

0.46%

Annual Payout

$0.22

Payout Ratio

8.34%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.59

Next Year EPS Growth Estimate

$3.48

Next Year Revenue Growth Estimate

$216.90B

Return on Equity (ROE)

58.84%

FREE CASH FLOW

Operating Margin

17.31%

Debt-to-Equity

1.51 Piotroski F-Score

6 Altman Z-Score

3.96 Return on Invested Capital (ROIC)

21.33%

Current Ratio

2.53 Quick Ratio

1.70 Net Debt to EBITDA

2.41 Interest Coverage

8.08 Gross Profit margin

28.82%

FCF PER SHARE

$1.94

REVENUE PER SHARE

$22.37

Gainseekers Quantitative Analysis

Summary

ATMU Atmus Filtration Technologies Inc. presents a perplexing valuation scenario. Despite a robust Altman Z-score of 4.19 indicating financial stability, the stock traded above its DCF value, suggesting potential overvaluation. The Forward P/E of 15.97 reflects moderate growth expectations, yet the Earnings Yield of 4.65% hints at limited immediate returns. The Price/Book ratio of 11.24 raises eyebrows, pointing to a premium valuation that may not be justified by its fundamentals. Overall, the market seems to be pricing in significant future growth, but the current metrics suggest caution.

AI Exposure / Tech Reliance

Operating within the Industrial - Pollution & Treatment Controls sector, ATMU is strategically positioned to leverage AI and modern tech advancements. As environmental regulations tighten, the company can integrate AI-driven solutions to enhance efficiency and compliance. This adaptability could fortify its competitive edge in a rapidly evolving industry landscape.

The Bull Case

For the discerning GARP investor, ATMU's appeal lies in its impressive ROIC of 21.33%, showcasing exceptional capital efficiency. The Piotroski F-Score of 6 indicates solid financial health, while a strong operating margin of 17.31% underscores its pricing power. Despite a modest FCF Yield of 3.48%, the company’s ability to generate consistent cash flow speaks to its operational prowess and potential for long-term value creation.

The Bear Case

However, ATMU is not without its pitfalls. The Price/Book ratio of 11.24 and Price/Sales of 2.49 suggest a valuation that may be stretched, especially when the stock traded above its DCF value. The EV to FCF ratio of 34.11 further highlights concerns about cash flow efficiency. With a snapshot price extended above its 50-Day SMA, the stock appears technically overextended, raising questions about its near-term upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$40.33

Institutional Ownership %

1-Year Beta

1.48 Insider Buying % (6 Mo)

Distance to 52-Week High

39.18%

Distance to 52-Week Low

27.64%

EARNINGS SURPRISE %

6.15%

50-DAY SMA

$57.13

200-DAY SMA

$52.79

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.