ALTEN SA (ATE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ATE - FR0000071946 - Common Stock
73.2 EUR
0 (0%)
Overall ATE gets a fundamental rating of 5 out of 10. We evaluated ATE against 70 industry peers in the IT Services industry. ATE has an excellent financial health rating, but there are some minor concerns on its profitability. ATE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ATE had positive earnings in the past year.
- ATE had a positive operating cash flow in the past year.
- ATE had positive earnings in each of the past 5 years.
- Each year in the past 5 years ATE had a positive operating cash flow.
1.2 Ratios
- ATE has a Return On Assets (4.17%) which is comparable to the rest of the industry.
- ATE has a worse Return On Equity (6.86%) than 60.53% of its industry peers.
- ATE has a Return On Invested Capital (9.20%) which is comparable to the rest of the industry.
- ATE had an Average Return On Invested Capital over the past 3 years of 11.24%. This is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 6.86% | ||
| ROIC | 9.2% |
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 has a Profit Margin (3.65%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of ATE has declined.
- The Operating Margin of ATE (7.88%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ATE has declined.
- ATE has a Gross Margin of 88.90%. This is amongst the best in the industry. ATE outperforms 81.58% of its industry peers.
- In the last couple of years the Gross Margin of ATE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.88% | ||
| PM (TTM) | 3.65% | ||
| GM | 88.9% |
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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ATE is destroying value.
- Compared to 1 year ago, ATE has more shares outstanding
- ATE has more shares outstanding than it did 5 years ago.
- ATE has a better debt/assets ratio than last year.
2.2 Solvency
- ATE has an Altman-Z score of 3.56. This indicates that ATE is financially healthy and has little risk of bankruptcy at the moment.
- ATE's Altman-Z score of 3.56 is fine compared to the rest of the industry. ATE outperforms 72.37% of its industry peers.
- ATE has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
- The Debt to FCF ratio of ATE (0.80) is better than 85.53% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that ATE is not too dependend on debt financing.
- ATE has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. ATE outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.67
WACC13.7%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that ATE should not have too much problems paying its short term obligations.
- ATE has a Current ratio of 1.55. This is in the better half of the industry: ATE outperforms 71.05% of its industry peers.
- A Quick Ratio of 1.55 indicates that ATE should not have too much problems paying its short term obligations.
- ATE has a better Quick ratio (1.55) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- ATE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.11%.
- The Earnings Per Share has been growing slightly by 1.91% on average over the past years.
- ATE shows a decrease in Revenue. In the last year, the revenue decreased by -0.23%.
- 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)-38.11%
EPS 3Y-4.08%
EPS 5Y1.91%
EPS Q2Q%-30.5%
Revenue 1Y (TTM)-0.23%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%-1.13%
3.2 Future
- Based on estimates for the next years, ATE will show a small growth in Earnings Per Share. The EPS will grow by 5.74% on average per year.
- Based on estimates for the next years, ATE will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y-12.54%
EPS Next 2Y0.73%
EPS Next 3Y4.41%
EPS Next 5Y5.74%
Revenue Next Year-1.29%
Revenue Next 2Y0.42%
Revenue Next 3Y1.65%
Revenue Next 5Y3.72%
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
- ATE is valuated rather expensively with a Price/Earnings ratio of 17.06.
- 68.42% of the companies in the same industry are more expensive than ATE, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ATE to the average of the S&P500 Index (27.21), we can say ATE is valued slightly cheaper.
- A Price/Forward Earnings ratio of 10.34 indicates a reasonable valuation of ATE.
- ATE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ATE is cheaper than 85.53% of the companies in the same industry.
- ATE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ATE is valued a bit cheaper than 73.68% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ATE is valued cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.91
EPS Next 2Y0.73%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
- ATE has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.27, ATE pays a bit more dividend than its industry peers.
- ATE's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
- 34.67% 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.
DP34.67%
EPS Next 2Y0.73%
EPS Next 3Y4.41%
ALTEN SA / ATE.PA FAQ
Can you provide the ChartMill fundamental rating for ALTEN SA?
ChartMill assigns a fundamental rating of 5 / 10 to ATE.PA.
What is the valuation status for ATE stock?
ChartMill assigns a valuation rating of 5 / 10 to ALTEN SA (ATE.PA). This can be considered as Fairly Valued.
How profitable is ALTEN SA (ATE.PA) stock?
ALTEN SA (ATE.PA) has a profitability rating of 4 / 10.
What is the valuation of ALTEN SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALTEN SA (ATE.PA) is 17.06 and the Price/Book (PB) ratio is 1.18.
How financially healthy is ALTEN SA?
The financial health rating of ALTEN SA (ATE.PA) is 7 / 10.