ALTEN SA (ATE.PA) Stock Fundamental Analysis
EPA:ATE - Euronext Paris - Matif - FR0000071946 - Common Stock - Currency: EUR
ATE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 74 industry peers in the IT Services industry. ATE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ATE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATE was profitable.
ATE had a positive operating cash flow in the past year.
Each year in the past 5 years ATE has been profitable.
In the past 5 years ATE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.12%, ATE is in the better half of the industry, outperforming 63.51% of the companies in the same industry.
With a Return On Equity value of 8.44%, ATE perfoms like the industry average, outperforming 41.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.08%, ATE is doing good in the industry, outperforming 64.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATE is in line with the industry average of 11.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.44% | ||
| ROIC | 10.08% |
ROA(3y)8.51%
ROA(5y)7.6%
ROE(3y)14.92%
ROE(5y)13.49%
ROIC(3y)11.24%
ROIC(5y)10.54%
1.3 Margins
The Profit Margin of ATE (4.50%) is better than 63.51% of its industry peers.
ATE's Profit Margin has declined in the last couple of years.
ATE has a Operating Margin of 8.62%. This is in the better half of the industry: ATE outperforms 70.27% of its industry peers.
In the last couple of years the Operating Margin of ATE has declined.
ATE has a Gross Margin of 89.45%. This is amongst the best in the industry. ATE outperforms 81.08% of its industry peers.
ATE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | 4.5% | ||
| GM | 89.45% |
OM growth 3Y-5.37%
OM growth 5Y-2.37%
PM growth 3Y-14.13%
PM growth 5Y-6.39%
GM growth 3Y-0.01%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
ATE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ATE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ATE has more shares outstanding
Compared to 1 year ago, ATE has an improved debt to assets ratio.
2.2 Solvency
ATE has an Altman-Z score of 3.54. This indicates that ATE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ATE (3.54) is better than 77.03% of its industry peers.
ATE has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.90, ATE belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
ATE has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, ATE belongs to the top of the industry, outperforming 87.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.37
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ATE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, ATE is in the better half of the industry, outperforming 68.92% of the companies in the same industry.
ATE has a Quick Ratio of 1.52. This is a normal value and indicates that ATE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ATE (1.52) is better than 77.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
ATE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.99%.
Measured over the past 5 years, ATE shows a small growth in Earnings Per Share. The EPS has been growing by 1.91% on average per year.
ATE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.83%.
ATE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.57% yearly.
EPS 1Y (TTM)-20.99%
EPS 3Y-4.08%
EPS 5Y1.91%
EPS Q2Q%-45.28%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%0.71%
3.2 Future
ATE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.24% yearly.
Based on estimates for the next years, ATE will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
EPS Next Y5.76%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPS Next 5Y3.24%
Revenue Next Year-0.29%
Revenue Next 2Y1.39%
Revenue Next 3Y2.53%
Revenue Next 5Y2.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.34, ATE is valued correctly.
Based on the Price/Earnings ratio, ATE is valued cheaply inside the industry as 82.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.35. ATE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.63, the valuation of ATE can be described as very reasonable.
89.19% of the companies in the same industry are more expensive than ATE, based on the Price/Forward Earnings ratio.
ATE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATE is valued a bit cheaper than 79.73% of the companies in the same industry.
86.49% of the companies in the same industry are more expensive than ATE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ATE may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)6.97
EPS Next 2Y9.45%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, ATE has a reasonable but not impressive dividend return.
The stock price of ATE dropped by -26.89% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ATE's Dividend Yield is comparable with the industry average which is at 6.79.
ATE's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of ATE grows each year by 8.51%, which is quite nice.
Dividend Growth(5Y)8.51%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
27.95% of the earnings are spent on dividend by ATE. This is a low number and sustainable payout ratio.
The dividend of ATE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.95%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPA:ATE (6/20/2025, 7:00:00 PM)
71.1
+0.4 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.53%
Inst Owner ChangeN/A
Ins Owners14.67%
Ins Owner ChangeN/A
Market Cap2.51B
Analysts75
Price Target101.49 (42.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend1.5
Dividend Growth(5Y)8.51%
DP27.95%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1%
PT rev (3m)-10.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.61 | ||
| P/FCF | 6.07 | ||
| P/OCF | 5.83 | ||
| P/B | 1.14 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)5.33
EY7.5%
EPS(NY)7.38
Fwd EY10.38%
FCF(TTM)11.7
FCFY16.46%
OCF(TTM)12.2
OCFY17.16%
SpS117.47
BVpS62.64
TBVpS22.96
PEG (NY)2.31
PEG (5Y)6.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.44% | ||
| ROCE | 14.47% | ||
| ROIC | 10.08% | ||
| ROICexc | 11.41% | ||
| ROICexgc | 31.82% | ||
| OM | 8.62% | ||
| PM (TTM) | 4.5% | ||
| GM | 89.45% | ||
| FCFM | 9.96% |
ROA(3y)8.51%
ROA(5y)7.6%
ROE(3y)14.92%
ROE(5y)13.49%
ROIC(3y)11.24%
ROIC(5y)10.54%
ROICexc(3y)13.47%
ROICexc(5y)12.75%
ROICexgc(3y)34.98%
ROICexgc(5y)33.58%
ROCE(3y)16.23%
ROCE(5y)15.2%
ROICexcg growth 3Y-16.88%
ROICexcg growth 5Y-5.91%
ROICexc growth 3Y-11.85%
ROICexc growth 5Y-8.9%
OM growth 3Y-5.37%
OM growth 5Y-2.37%
PM growth 3Y-14.13%
PM growth 5Y-6.39%
GM growth 3Y-0.01%
GM growth 5Y-0.44%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 18.68% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.34% | ||
| Profit Quality | 221.43% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.54 |
F-Score6
WACC7.36%
ROIC/WACC1.37
Cap/Depr(3y)24.2%
Cap/Depr(5y)22.75%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.54%
Profit Quality(3y)120.95%
Profit Quality(5y)153.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.99%
EPS 3Y-4.08%
EPS 5Y1.91%
EPS Q2Q%-45.28%
EPS Next Y5.76%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPS Next 5Y3.24%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%0.71%
Revenue Next Year-0.29%
Revenue Next 2Y1.39%
Revenue Next 3Y2.53%
Revenue Next 5Y2.47%
EBIT growth 1Y2.11%
EBIT growth 3Y6.28%
EBIT growth 5Y6.97%
EBIT Next Year25.31%
EBIT Next 3Y13.87%
EBIT Next 5Y8.31%
FCF growth 1Y87.47%
FCF growth 3Y24.28%
FCF growth 5Y14.86%
OCF growth 1Y78.5%
OCF growth 3Y22.94%
OCF growth 5Y13.91%