Atlas Technical Consultants, Inc. (ATCX)

Atlas Technical Consultants, Inc. (ATCX) Industrial Operations Profile

Atlas Technical Consultants, Inc. (ATCX) offers testing, inspection, engineering, and program management services in the U.S. Their comprehensive suite of technical solutions caters to diverse end markets, positioning them as a key player in infrastructure and construction project support, despite current negative profitability.

What Is the Investment Thesis for ATCX?

Atlas Technical Consultants, Inc. presents a mixed investment thesis. The company operates in the growing infrastructure and construction sectors, benefiting from increased government spending and private investment in these areas. Their comprehensive service offerings, spanning testing, inspection, engineering, and program management, position them as a one-stop solution for clients. However, the company's negative P/E ratio of -55.12 and negative profit margin of -1.3% raise concerns about its current profitability. The gross margin of 46.1% indicates potential for improved profitability with better cost management. Key growth catalysts include expanding service offerings and strategic acquisitions. Investors should closely monitor the company's ability to improve its financial performance and capitalize on market opportunities.

Based on FMP financials and quantitative analysis

ATCX Key Highlights

• Gross Margin of 46.1% indicates potential for profitability improvements through efficient cost management.
• Beta of 1.08 suggests the stock's volatility is slightly higher than the market average.
• Offers a comprehensive suite of services including testing, inspection, engineering, environmental, and program management.
• Operates in the growing infrastructure and construction sectors, benefiting from increased government spending.
• Employs 3140 people, indicating a substantial operational capacity.

Who Are ATCX's Competitors?

ATCX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ATCX's Key Strengths?

• Comprehensive suite of services.
• Established market presence.
• Experienced management team.
• Strong technical expertise.

What Are ATCX's Weaknesses?

• Negative P/E ratio.
• Negative profit margin.
• High debt levels.
• Dependence on government spending.

What Could Drive ATCX Stock Higher?

• Infrastructure Investment and Jobs Act driving increased government spending on infrastructure projects.
• Strategic acquisitions expanding service offerings and geographic reach.
• Adoption of digital technologies improving efficiency and reducing costs.

What Are the Key Risks for ATCX?

• Financial-distress signal — its Altman Z-Score of 1.66 sits in the distress zone (elevated bankruptcy risk).
• Economic downturn impacting infrastructure spending.
• Increased competition in the engineering and construction industries.
• Changes in government regulations affecting environmental compliance.
• Project delays and cost overruns impacting profitability.

What Are the Growth Opportunities for ATCX?

• Expansion of Service Offerings: Atlas can expand its service offerings to include specialized areas such as renewable energy infrastructure and smart city solutions. The market for renewable energy infrastructure is projected to reach $1 trillion by 2030, offering significant growth potential. By developing expertise in these areas, Atlas can attract new clients and increase its revenue streams. Timeline: Ongoing.
• Strategic Acquisitions: Atlas can pursue strategic acquisitions to expand its geographic footprint and service capabilities. The market for engineering and construction services is fragmented, with numerous small and medium-sized firms. By acquiring these firms, Atlas can consolidate its market position and gain access to new markets and technologies. Timeline: Ongoing.
• Increased Government Spending on Infrastructure: Increased government spending on infrastructure projects, driven by initiatives such as the Infrastructure Investment and Jobs Act, presents a significant growth opportunity for Atlas. The act allocates billions of dollars for infrastructure development, creating demand for testing, inspection, engineering, and program management services. Atlas can leverage its expertise and experience to secure contracts for these projects. Timeline: Ongoing.
• Adoption of Digital Technologies: The adoption of digital technologies such as BIM (Building Information Modeling) and AI (Artificial Intelligence) can improve efficiency and reduce costs. The market for digital technologies in construction is projected to reach $15 billion by 2028. By investing in these technologies, Atlas can enhance its competitiveness and attract clients seeking innovative solutions. Timeline: Ongoing.
• Focus on Sustainability: An increasing focus on sustainability and environmental regulations creates demand for environmental services such as environmental permitting, compliance assistance, and auditing. The market for environmental services is projected to reach $300 billion by 2027. Atlas can capitalize on this trend by expanding its environmental service offerings and promoting its commitment to sustainability. Timeline: Ongoing.

What Opportunities Does ATCX Have?

• Increased government spending on infrastructure.
• Expansion of service offerings.
• Strategic acquisitions.
• Adoption of digital technologies.

What Threats Does ATCX Face?

• Economic downturn.
• Increased competition.
• Changes in government regulations.
• Project delays and cost overruns.

What Are ATCX's Competitive Advantages?

• Comprehensive service offerings provide a one-stop solution for clients.
• Established relationships with government agencies and private sector companies.
• Technical expertise and experience in testing, inspection, engineering, and program management.
• Geographic reach across the United States.

What Does ATCX Do?

Atlas Technical Consultants, Inc., headquartered in Austin, Texas, provides a comprehensive suite of professional services, including testing, inspection, engineering, environmental, and program management and consulting. The company was formed to address the growing need for reliable and comprehensive infrastructure support services. Atlas assists clients in testing, inspecting, planning, designing, certifying, and managing projects across various end markets. Their services encompass the entire project lifecycle, from initial planning and design to construction, certification, and ongoing management. Atlas offers testing, inspection, and certification services, including construction materials testing, non-destructive testing, materials testing and inspection, laboratory services, geophysics, construction quality assurance, and forensic and structural investigations. Their environmental services cover environmental permitting, compliance assistance, auditing, air quality management, water and hazardous material permitting, underground storage tank management, and disaster response and recovery. The company's engineering and design services include civil site, transportation, and geotechnical engineering, hydrogeology, water/wastewater management, solid waste/landfill management, land acquisition, subsurface utility engineering, surveying and mapping, and geographic information system asset inventory and assessments. Additionally, Atlas provides program management, construction management, and quality management services, such as programmatic planning, contract document preparation, bid evaluation, project estimating and scheduling, cost control, contract administration, and community relations.

What Products and Services Does ATCX Offer?

• Provides construction materials testing.
• Offers non-destructive testing and evaluations.
• Conducts materials testing and inspection.
• Operates materials laboratories.
• Provides environmental permitting and compliance assistance.
• Offers civil site and transportation engineering.
• Provides program and construction management services.

How Does ATCX Make Money?

• Generates revenue by providing testing, inspection, and certification services.
• Earns fees for environmental services, including permitting and compliance.
• Secures contracts for engineering and design services.
• Receives payments for program and construction management services.

What Industry Does ATCX Operate In?

Atlas Technical Consultants, Inc. operates within the engineering and construction industry, which is experiencing growth driven by infrastructure development and increasing environmental regulations. The market is competitive, with key players like AAN (Aarons, Inc.), AENZ (Aenza S.A.), BGRY (Berkshire Grey Inc.), CECO (CECO Environmental Corp.), and DSKE (Daseke Inc.) offering similar services. The industry is characterized by project-based revenues and cyclical demand, influenced by economic conditions and government spending. Companies are increasingly focusing on sustainable practices and technological advancements to enhance efficiency and competitiveness. Atlas's comprehensive service offerings and geographic reach position it to capitalize on these trends.

Who Are ATCX's Key Customers?

• Government agencies at the federal, state, and local levels.
• Private sector companies in the infrastructure and construction industries.
• Commercial real estate developers.
• Industrial facilities requiring environmental compliance services.

Company Profile

Atlas Technical Consultants, Inc. operates in the Gold industry within the Basic Materials sector. It is headquartered in Olhos D'agua, BR. The company is led by CEO L. Joseph Boyer. ATCX has traded publicly since 2018.

Atlas Technical Consultants, Inc. (ATCX) Valuation Context

Valued at $10.11M, ATCX is classified as a micro-cap stock. Relative to its peer group, ATCX's quantitative score of 48/100 is roughly in line with the peer average of 48/100.

ROE 7%Key Financial Metrics

Return on equity for Atlas Technical Consultants, Inc. stands at 6.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.7%, showing how much profit it generates from its asset base. Its free cash flow yield is -56.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.30 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -5.7%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 4/9Financial Health

Atlas Technical Consultants, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.66 places it in the distress zone, a signal of elevated financial risk.

ATCX Financials

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ATCX MoonshotScore

Common Questions About ATCX (Industrials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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