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Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>ATKR saw a spike in the sales price of key PVC products and was able to extract large price increases from customers.  Sales rose by 122% and EBITDA quadrupled.</li>
<li>Now, upstream PVC resin plants are coming back online.  Atkore’s competitors will become relevant again as supply and demand rebalance over the seasonal slowdown.</li>
<li>Multiples nearly ignore the upcoming reversion.  The stock trades at record multiples of FY2 and FY3 sales, EBITDA and earnings, long past when PVC prices and margins should normalize.</li>
</ul>


ATKR saw a spike in the sales price of key PVC products and was able to extract large price increases from customers.  Sales rose by 122% and EBITDA quadrupled.
Now, upstream PVC resin plants are coming back online.  Atkore’s competitors will become relevant again as supply and demand rebalance over the seasonal slowdown.
Multiples nearly ignore the upcoming reversion.  The stock trades at record multiples of FY2 and FY3 sales, EBITDA and earnings, long past when PVC prices and margins should normalize.


Atkore Inc

Atkore Inc (ATKR): Sell Short