ATEA ASA (ATEA.OL) Stock Fundamental Analysis
OSL:ATEA - Euronext Oslo - NO0004822503 - Common Stock - Currency: NOK
Overall ATEA gets a fundamental rating of 6 out of 10. We evaluated ATEA against 76 industry peers in the IT Services industry. While ATEA has a great profitability rating, there are some minor concerns on its financial health. ATEA has a correct valuation and a medium growth rate. ATEA also has an excellent dividend rating. With these ratings, ATEA could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
ATEA had positive earnings in the past year.
In the past year ATEA had a positive cash flow from operations.
ATEA had positive earnings in each of the past 5 years.
ATEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATEA has a Return On Assets (4.37%) which is in line with its industry peers.
ATEA has a better Return On Equity (16.74%) than 78.95% of its industry peers.
ATEA has a better Return On Invested Capital (14.64%) than 90.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATEA is significantly above the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 16.74% | ||
| ROIC | 14.64% |
ROA(3y)4.24%
ROA(5y)4.2%
ROE(3y)19.77%
ROE(5y)19.69%
ROIC(3y)16.22%
ROIC(5y)15.36%
1.3 Margins
ATEA has a Profit Margin (2.10%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ATEA has grown nicely.
ATEA has a Operating Margin (3.48%) which is in line with its industry peers.
ATEA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.62%, ATEA is not doing good in the industry: 67.11% of the companies in the same industry are doing better.
ATEA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.48% | ||
| PM (TTM) | 2.1% | ||
| GM | 29.62% |
OM growth 3Y-1.56%
OM growth 5Y11.43%
PM growth 3Y-5.64%
PM growth 5Y9.16%
GM growth 3Y0.47%
GM growth 5Y7.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ATEA is creating value.
ATEA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ATEA has been increased compared to 5 years ago.
Compared to 1 year ago, ATEA has an improved debt to assets ratio.
2.2 Solvency
ATEA has an Altman-Z score of 3.35. This indicates that ATEA is financially healthy and has little risk of bankruptcy at the moment.
ATEA has a better Altman-Z score (3.35) than 73.68% of its industry peers.
The Debt to FCF ratio of ATEA is 1.40, which is an excellent value as it means it would take ATEA, only 1.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ATEA (1.40) is better than 80.26% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ATEA is not too dependend on debt financing.
ATEA has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: ATEA outperforms 55.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.74
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.92 indicates that ATEA may have some problems paying its short term obligations.
The Current ratio of ATEA (0.92) is worse than 76.32% of its industry peers.
ATEA has a Quick Ratio of 0.92. This is a bad value and indicates that ATEA is not financially healthy enough and could expect problems in meeting its short term obligations.
ATEA has a Quick ratio of 0.81. This is in the lower half of the industry: ATEA underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ATEA have decreased by -4.33% in the last year.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
Looking at the last year, ATEA shows a small growth in Revenue. The Revenue has grown by 5.69% in the last year.
The Revenue has been decreasing by -1.16% on average over the past years.
EPS 1Y (TTM)-4.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%12.45%
3.2 Future
ATEA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.14% yearly.
Based on estimates for the next years, ATEA will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y26.82%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
EPS Next 5YN/A
Revenue Next Year9.75%
Revenue Next 2Y6.95%
Revenue Next 3Y6.07%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.09, which indicates a rather expensive current valuation of ATEA.
Compared to the rest of the industry, the Price/Earnings ratio of ATEA indicates a somewhat cheap valuation: ATEA is cheaper than 61.84% of the companies listed in the same industry.
ATEA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.20.
With a Price/Forward Earnings ratio of 13.79, ATEA is valued correctly.
69.74% of the companies in the same industry are more expensive than ATEA, based on the Price/Forward Earnings ratio.
ATEA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATEA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATEA indicates a somewhat cheap valuation: ATEA is cheaper than 67.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ATEA may justify a higher PE ratio.
A more expensive valuation may be justified as ATEA's earnings are expected to grow with 22.14% in the coming years.
PEG (NY)0.79
PEG (5Y)2.45
EPS Next 2Y21.38%
EPS Next 3Y22.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, ATEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.98, ATEA pays a better dividend. On top of this ATEA pays more dividend than 85.53% of the companies listed in the same industry.
ATEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
The dividend of ATEA has a limited annual growth rate of 1.53%.
Dividend Growth(5Y)1.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ATEA pays out 104.83% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ATEA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.83%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
OSL:ATEA (5/28/2025, 7:00:00 PM)
147
-1 (-0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.65%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap16.52B
Analysts81.67
Price Target157.76 (7.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Yearly Dividend7.01
Dividend Growth(5Y)1.53%
DP104.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.48%
Min EPS beat(2)-25.7%
Max EPS beat(2)2.74%
EPS beat(4)1
Avg EPS beat(4)-15.6%
Min EPS beat(4)-32.76%
Max EPS beat(4)2.74%
EPS beat(8)3
Avg EPS beat(8)-8.25%
EPS beat(12)5
Avg EPS beat(12)-3.4%
EPS beat(16)8
Avg EPS beat(16)-2.31%
Revenue beat(2)1
Avg Revenue beat(2)-3.12%
Min Revenue beat(2)-8.86%
Max Revenue beat(2)2.61%
Revenue beat(4)1
Avg Revenue beat(4)-5.75%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)2.61%
Revenue beat(8)1
Avg Revenue beat(8)-10.52%
Revenue beat(12)1
Avg Revenue beat(12)-12.13%
Revenue beat(16)1
Avg Revenue beat(16)-18.23%
PT rev (1m)-3.43%
PT rev (3m)-3.43%
EPS NQ rev (1m)10.53%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.94%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 13.79 | ||
| P/S | 0.46 | ||
| P/FCF | 10.31 | ||
| P/OCF | 8.06 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.03 |
EPS(TTM)6.97
EY4.74%
EPS(NY)10.66
Fwd EY7.25%
FCF(TTM)14.26
FCFY9.7%
OCF(TTM)18.24
OCFY12.41%
SpS316.17
BVpS39.65
TBVpS-6.18
PEG (NY)0.79
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 16.74% | ||
| ROCE | 18.8% | ||
| ROIC | 14.64% | ||
| ROICexc | 16.9% | ||
| ROICexgc | 178.05% | ||
| OM | 3.48% | ||
| PM (TTM) | 2.1% | ||
| GM | 29.62% | ||
| FCFM | 4.51% |
ROA(3y)4.24%
ROA(5y)4.2%
ROE(3y)19.77%
ROE(5y)19.69%
ROIC(3y)16.22%
ROIC(5y)15.36%
ROICexc(3y)21.54%
ROICexc(5y)20.76%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.83%
ROCE(5y)19.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y0.9%
ROICexc growth 5Y0.34%
OM growth 3Y-1.56%
OM growth 5Y11.43%
PM growth 3Y-5.64%
PM growth 5Y9.16%
GM growth 3Y0.47%
GM growth 5Y7.27%
F-Score5
Asset Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 60.08% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.59% | ||
| Profit Quality | 214.88% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.35 |
F-Score5
WACC8.4%
ROIC/WACC1.74
Cap/Depr(3y)56.41%
Cap/Depr(5y)54.8%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.07%
Profit Quality(3y)158.62%
Profit Quality(5y)151.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%-15.79%
EPS Next Y26.82%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
EPS Next 5YN/A
Revenue 1Y (TTM)5.69%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%12.45%
Revenue Next Year9.75%
Revenue Next 2Y6.95%
Revenue Next 3Y6.07%
Revenue Next 5YN/A
EBIT growth 1Y-1.12%
EBIT growth 3Y5%
EBIT growth 5Y10.15%
EBIT Next Year71.82%
EBIT Next 3Y26.38%
EBIT Next 5YN/A
FCF growth 1Y4.84%
FCF growth 3Y27.77%
FCF growth 5Y0.38%
OCF growth 1Y6.16%
OCF growth 3Y22.77%
OCF growth 5Y1.34%