ALTEN SA (ATE.PA) Stock Fundamental Analysis
EPA:ATE - Euronext Paris - Matif - FR0000071946 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ATE. ATE was compared to 71 industry peers in the IT Services industry. While ATE has a great health rating, its profitability is only average at the moment. ATE is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ATE a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ATE had positive earnings in the past year.
In the past year ATE had a positive cash flow from operations.
ATE had positive earnings in each of the past 5 years.
In the past 5 years ATE always reported a positive cash flow from operatings.
1.2 Ratios
ATE has a Return On Assets of 5.12%. This is in the better half of the industry: ATE outperforms 63.38% of its industry peers.
Looking at the Return On Equity, with a value of 8.44%, ATE is in line with its industry, outperforming 42.25% 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 66.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATE is in line with the industry average of 11.04%.
| 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
ATE's Profit Margin of 4.50% is fine compared to the rest of the industry. ATE outperforms 60.56% of its industry peers.
In the last couple of years the Profit Margin of ATE has declined.
ATE has a Operating Margin of 8.62%. This is in the better half of the industry: ATE outperforms 67.61% of its industry peers.
ATE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 89.45%, ATE belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
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 below the Cost of Capital (WACC), which means it is destroying value.
ATE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATE has been increased compared to 5 years ago.
Compared to 1 year ago, ATE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.50 indicates that ATE is not in any danger for bankruptcy at the moment.
ATE has a better Altman-Z score (3.50) than 74.65% 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.
ATE has a Debt to FCF ratio of 0.90. This is amongst the best in the industry. ATE outperforms 84.51% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ATE is not too dependend on debt financing.
ATE has a better Debt to Equity ratio (0.09) than 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.76
WACC13.32%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ATE should not have too much problems paying its short term obligations.
ATE has a Current ratio of 1.52. This is in the better half of the industry: ATE outperforms 67.61% of its industry peers.
A Quick Ratio of 1.52 indicates that ATE should not have too much problems paying its short term obligations.
The Quick ratio of ATE (1.52) is better than 76.06% 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%.
The Earnings Per Share has been growing slightly by 1.91% on average over the past years.
ATE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.83%.
Measured over the past years, ATE shows a quite strong growth in Revenue. The Revenue has been growing by 9.57% on average per year.
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
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
Based on estimates for the next years, ATE will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y5.76%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPS Next 5Y2.78%
Revenue Next Year-1.03%
Revenue Next 2Y0.76%
Revenue Next 3Y2.06%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.03, the valuation of ATE can be described as correct.
83.10% of the companies in the same industry are more expensive than ATE, based on the Price/Earnings ratio.
ATE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
With a Price/Forward Earnings ratio of 9.41, the valuation of ATE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ATE is valued cheaper than 83.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.36. ATE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATE indicates a somewhat cheap valuation: ATE is cheaper than 77.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ATE is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | 5.48 |
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)2.26
PEG (5Y)6.8
EPS Next 2Y9.45%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, ATE has a reasonable but not impressive dividend return.
ATE's Dividend Yield is comparable with the industry average which is at 7.06.
ATE's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
ATE pays out 27.95% of its income as dividend. This is a 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 (8/7/2025, 4:11:01 PM)
69.45
+1.6 (+2.36%)
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 Cap2.45B
Analysts75
Price Target101.49 (46.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)0%
PT rev (3m)-9.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.59 | ||
| P/FCF | 5.93 | ||
| P/OCF | 5.69 | ||
| P/B | 1.11 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)5.33
EY7.67%
EPS(NY)7.38
Fwd EY10.63%
FCF(TTM)11.7
FCFY16.85%
OCF(TTM)12.2
OCFY17.57%
SpS117.47
BVpS62.64
TBVpS22.96
PEG (NY)2.26
PEG (5Y)6.8
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 | 3.5 |
F-Score6
WACC13.32%
ROIC/WACC0.76
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 5Y2.78%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%0.71%
Revenue Next Year-1.03%
Revenue Next 2Y0.76%
Revenue Next 3Y2.06%
Revenue Next 5Y2.01%
EBIT growth 1Y2.11%
EBIT growth 3Y6.28%
EBIT growth 5Y6.97%
EBIT Next Year25.31%
EBIT Next 3Y13.87%
EBIT Next 5Y7.83%
FCF growth 1Y87.47%
FCF growth 3Y24.28%
FCF growth 5Y14.86%
OCF growth 1Y78.5%
OCF growth 3Y22.94%
OCF growth 5Y13.91%