Atlantic International (ATLN)
Market Price (12/5/2025): $2.3 | Market Cap: $125.5 MilSector: Industrials | Industry: Human Resource & Employment Services
Atlantic International (ATLN)
Market Price (12/5/2025): $2.3Market Cap: $125.5 MilSector: IndustrialsIndustry: Human Resource & Employment Services
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -54% | Weak multi-year price returns2Y Excs Rtn is -93%, 3Y Excs Rtn is -160% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -31 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -6.9% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments. | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 70% | |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x | ||
| Weak revenue growthRev Chg QQuarterly Revenue Change % is -1.7% | ||
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -92% | ||
| High stock price volatilityVol 12M is 158% | ||
| Significant short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 15.11 |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -54% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments. Themes include Online Banking & Lending, and Digital Payments. |
| Weak multi-year price returns2Y Excs Rtn is -93%, 3Y Excs Rtn is -160% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -31 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -6.9% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 70% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x |
| Weak revenue growthRev Chg QQuarterly Revenue Change % is -1.7% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -92% |
| High stock price volatilityVol 12M is 158% |
| Significant short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 15.11 |
Valuation, Metrics & Events
ATLN Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Between approximately August 31, 2025, and December 5, 2025, Atlantic International (ATLN) stock experienced a significant decline of 42.4%. Several key factors contributed to this downward movement:
**1. Continued Unprofitability and Widening Quarterly Net Loss**: Despite efforts to improve its financial position, Atlantic International remained unprofitable, and its net loss for the third quarter of 2025 (Q3 2025) actually widened to $10.8 million compared to $7.0 million in Q3 2024. While the year-to-date net loss improved, the quarterly setback likely impacted investor confidence.
**2. High Debt Levels and Significant Leverage**: The company continued to face challenges with substantial debt levels and high leverage. Analyses indicated a "poor" financial strength rating and a low Altman Z-Score, suggesting potential bankruptcy risk, which is a significant concern for investors.
**3. Increased Operating Expenses**: Selling, general, and administrative (SG&A) expenses rose to $19.9 million in Q3 2025, marking a 16% increase from Q3 2024 and a 26.3% increase year-to-date. These rising costs further hampered the company's path to profitability.
**4. High Stock Volatility and Market Underperformance**: ATLN stock demonstrated high volatility and significantly underperformed both the broader US market and its industry over the past year. This persistent volatility and lack of comparative growth likely contributed to investor apprehension and a downward trend.
**5. Insufficient Cash Position and Negative Operating Cash Flow**: The company's cash and cash equivalents were very low, at $83,406 as of September 30, 2025, a significant decrease from the end of 2024. Furthermore, despite some temporary working capital reductions, the company's operating cash flow was negative, indicating that it could not sustain ongoing losses with its current cash holdings.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ATLN Return | - | - | -84% | -64% | 18% | -53% | -97% |
| Peers Return | 42% | 10% | -6% | 8% | 10% | -12% | 53% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 17% | 112% |
Monthly Win Rates [3] | |||||||
| ATLN Win Rate | - | 25% | 25% | 50% | 33% | 20% | |
| Peers Win Rate | 65% | 57% | 45% | 52% | 60% | 42% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| ATLN Max Drawdown | - | - | -86% | -66% | -69% | -70% | |
| Peers Max Drawdown | -48% | -21% | -26% | -15% | -19% | -21% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: PAYX, BBSI, JOB, ADP, DAY.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/4/2025 (YTD)
How Low Can It Go
| Event | ATLN | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -98.2% | -25.4% |
| % Gain to Breakeven | 5479.7% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
Compare to PAYX, BBSI, JOB, ADP, DAY
In The Past
Atlantic International's stock fell -98.2% during the 2022 Inflation Shock from a high on 8/30/2021. A -98.2% loss requires a 5479.7% gain to breakeven.
Preserve Wealth
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Asset Allocation
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Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to ATLN. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | CNM | Core & Main | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 9.5% | 9.5% | -1.6% |
| 11212025 | VRRM | Verra Mobility | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.2% | 3.2% | -1.2% |
| 11212025 | LII | Lennox International | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 7.5% | 7.5% | 0.0% |
| 11212025 | ADP | Automatic Data Processing | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | -1.2% |
| 11212025 | CW | Curtiss-Wright | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 0.0% | 0.0% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | CNM | Core & Main | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 9.5% | 9.5% | -1.6% |
| 11212025 | VRRM | Verra Mobility | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.2% | 3.2% | -1.2% |
| 11212025 | LII | Lennox International | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 7.5% | 7.5% | 0.0% |
| 11212025 | ADP | Automatic Data Processing | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | -1.2% |
| 11212025 | CW | Curtiss-Wright | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 0.0% | 0.0% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Atlantic International
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 52.01 |
| Mkt Cap | 6.0 |
| Rev LTM | 1,559 |
| Op Inc LTM | 98 |
| FCF LTM | 96 |
| FCF 3Y Avg | 76 |
| CFO LTM | 159 |
| CFO 3Y Avg | 139 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.4% |
| Rev Chg 3Y Avg | 6.5% |
| Rev Chg Q | 7.7% |
| QoQ Delta Rev Chg LTM | 1.9% |
| Op Mgn LTM | 6.1% |
| Op Mgn 3Y Avg | 6.8% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 9.0% |
| CFO/Rev 3Y Avg | 14.5% |
| FCF/Rev LTM | 5.5% |
| FCF/Rev 3Y Avg | 7.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 6.0 |
| P/S | 3.3 |
| P/EBIT | 7.3 |
| P/E | 10.1 |
| P/CFO | 25.7 |
| Total Yield | 1.9% |
| Dividend Yield | 0.2% |
| FCF Yield 3Y Avg | 3.4% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -1.0% |
| 3M Rtn | -15.6% |
| 6M Rtn | -10.7% |
| 12M Rtn | -20.3% |
| 3Y Rtn | 2.0% |
| 1M Excs Rtn | -2.2% |
| 3M Excs Rtn | -20.3% |
| 6M Excs Rtn | -26.1% |
| 12M Excs Rtn | -33.3% |
| 3Y Excs Rtn | -68.5% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 8142025 | 10-Q 6/30/2025 |
| 3312025 | 5142025 | 10-Q 3/31/2025 |
| 12312024 | 3282025 | 10-K 12/31/2024 |
| 9302024 | 11142024 | 10-Q 9/30/2024 |
| 6302024 | 8142024 | 10-Q 6/30/2024 |
| 3312024 | 5172024 | 10-Q 3/31/2024 |
| 12312023 | 4102024 | 10-K 12/31/2023 |
| 9302023 | 11202023 | 10-Q 9/30/2023 |
| 6302023 | 8042023 | 10-Q 6/30/2023 |
| 3312023 | 5092023 | 10-Q 3/31/2023 |
| 12312022 | 3162023 | 10-K 12/31/2022 |
| 9302022 | 11082022 | 10-Q 9/30/2022 |
| 6302022 | 8122022 | 10-Q 6/30/2022 |
| 3312022 | 5122022 | 10-Q 3/31/2022 |
| 12312021 | 3232022 | 10-K 12/31/2021 |
| 9302021 | 11162021 | 10-Q 9/30/2021 |
External Quote Links
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| CNBC | Etrade |
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| YCharts | Perplexity Finance |
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