ATEA ASA (ATEA.OL) Stock Fundamental Analysis
OSL:ATEA - Euronext Oslo - NO0004822503 - Common Stock - Currency: NOK
Taking everything into account, ATEA scores 6 out of 10 in our fundamental rating. ATEA was compared to 69 industry peers in the IT Services industry. ATEA has only an average score on both its financial health and profitability. 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
In the past year ATEA was profitable.
In the past year ATEA had a positive cash flow from operations.
In the past 5 years ATEA has always been profitable.
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 Return On Equity of 16.74%. This is in the better half of the industry: ATEA outperforms 78.26% of its industry peers.
ATEA has a Return On Invested Capital of 14.64%. This is amongst the best in the industry. ATEA outperforms 92.75% of its industry peers.
ATEA had an Average Return On Invested Capital over the past 3 years of 16.22%. This is significantly above the industry average of 10.77%.
| 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's Profit Margin of 2.10% is in line compared to the rest of the industry. ATEA outperforms 43.48% of its industry peers.
In the last couple of years the Profit Margin of ATEA has grown nicely.
Looking at the Operating Margin, with a value of 3.48%, ATEA is doing worse than 60.87% of the companies in the same industry.
ATEA's Operating Margin has improved in the last couple of years.
ATEA has a worse Gross Margin (29.62%) than 66.67% of its industry peers.
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.
The number of shares outstanding for ATEA has been increased compared to 1 year ago.
ATEA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATEA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that ATEA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.35, ATEA is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
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.
ATEA's Debt to FCF ratio of 1.40 is fine compared to the rest of the industry. ATEA outperforms 79.71% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ATEA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, ATEA perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.72
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.92 indicates that ATEA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.92, ATEA is doing worse than 73.91% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that ATEA may have some problems paying its short term obligations.
ATEA has a worse Quick ratio (0.81) than 75.36% 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 has been growing slightly by 1.33% over the past year.
ATEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.60% yearly.
ATEA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.69%.
ATEA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.16% yearly.
EPS 1Y (TTM)1.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%-15.77%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%12.45%
3.2 Future
The Earnings Per Share is expected to grow by 22.14% on average over the next years. This is a very strong growth
ATEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y26.82%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y6.17%
Revenue Next 3Y6.08%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.39 indicates a rather expensive 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 62.32% 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 24.29.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of ATEA can be described as correct.
Based on the Price/Forward Earnings ratio, ATEA is valued a bit cheaper than 71.01% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATEA to the average of the S&P500 Index (20.42), we can say ATEA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATEA.
Based on the Price/Free Cash Flow ratio, ATEA is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 9.01 |
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.
ATEA has a very decent profitability rating, which 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)0.76
PEG (5Y)2.37
EPS Next 2Y21.38%
EPS Next 3Y22.14%
5. Dividend
5.1 Amount
ATEA has a Yearly Dividend Yield of 4.93%, which is a nice return.
ATEA's Dividend Yield is rather good when compared to the industry average which is at 7.38. ATEA pays more dividend than 84.06% of the companies in the same industry.
ATEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
104.83% of the earnings are spent on dividend by ATEA. 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 (5/6/2025, 7:00:00 PM)
147.6
+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 Cap16.59B
Analysts81.67
Price Target155.72 (5.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)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)1
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-8.97%
Max Revenue beat(2)2.61%
Revenue beat(4)1
Avg Revenue beat(4)-5.78%
Min Revenue beat(4)-8.97%
Max Revenue beat(4)2.61%
Revenue beat(8)1
Avg Revenue beat(8)-10.53%
Revenue beat(12)1
Avg Revenue beat(12)-12.14%
Revenue beat(16)1
Avg Revenue beat(16)-18.24%
PT rev (1m)-4.68%
PT rev (3m)-7.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-6.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.47 | ||
| P/FCF | 10.35 | ||
| P/OCF | 8.09 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.01 |
EPS(TTM)7.24
EY4.91%
EPS(NY)10.66
Fwd EY7.22%
FCF(TTM)14.26
FCFY9.66%
OCF(TTM)18.24
OCFY12.36%
SpS316.17
BVpS39.65
TBVpS-6.18
PEG (NY)0.76
PEG (5Y)2.37
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
WACC8.51%
ROIC/WACC1.72
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)1.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%-15.77%
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 Year8.76%
Revenue Next 2Y6.17%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
EBIT growth 1Y-1.12%
EBIT growth 3Y5%
EBIT growth 5Y10.15%
EBIT Next Year74.83%
EBIT Next 3Y26.73%
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%