ATEME SA (ATEME.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ATEME - FR0011992700 - Common Stock
7.06 EUR
-0.06 (-0.84%)
We assign a fundamental rating of 3 out of 10 to ATEME. ATEME was compared to 31 industry peers in the Communications Equipment industry. Both the profitability and financial health of ATEME have multiple concerns. ATEME is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ATEME had negative earnings in the past year.
- ATEME had a positive operating cash flow in the past year.
- In the past 5 years ATEME reported 4 times negative net income.
- The reported operating cash flow has been mixed in the past 5 years: ATEME reported negative operating cash flow in multiple years.
1.2 Ratios
- ATEME has a Return On Assets (-0.40%) which is in line with its industry peers.
- With a Return On Equity value of -1.32%, ATEME perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
- With a Return On Invested Capital value of 2.61%, ATEME perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.32% | ||
| ROIC | 2.61% |
ROA(3y)-2.76%
ROA(5y)-1.47%
ROE(3y)-8.87%
ROE(5y)-4.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Operating Margin, with a value of 1.96%, ATEME is in line with its industry, outperforming 58.06% of the companies in the same industry.
- With an excellent Gross Margin value of 60.47%, ATEME belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- ATEME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.96% | ||
| PM (TTM) | N/A | ||
| GM | 60.47% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.28%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
- ATEME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ATEME has more shares outstanding
- Compared to 5 years ago, ATEME has more shares outstanding
- The debt/assets ratio for ATEME has been reduced compared to a year ago.
2.2 Solvency
- ATEME has an Altman-Z score of 1.94. This is not the best score and indicates that ATEME is in the grey zone with still only limited risk for bankruptcy at the moment.
- ATEME has a Altman-Z score of 1.94. This is comparable to the rest of the industry: ATEME outperforms 51.61% of its industry peers.
- The Debt to FCF ratio of ATEME is 21.54, which is on the high side as it means it would take ATEME, 21.54 years of fcf income to pay off all of its debts.
- ATEME has a Debt to FCF ratio of 21.54. This is in the lower half of the industry: ATEME underperforms 61.29% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that ATEME is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.63, ATEME is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 21.54 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.35
WACC7.5%
2.3 Liquidity
- ATEME has a Current Ratio of 1.41. This is a normal value and indicates that ATEME is financially healthy and should not expect problems in meeting its short term obligations.
- ATEME has a Current ratio of 1.41. This is comparable to the rest of the industry: ATEME outperforms 45.16% of its industry peers.
- A Quick Ratio of 1.30 indicates that ATEME should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.30, ATEME perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 95.05% over the past year.
- Looking at the last year, ATEME shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
- ATEME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.11% yearly.
EPS 1Y (TTM)95.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.32%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y5.87%
Revenue growth 5Y7.11%
Sales Q2Q%2.91%
3.2 Future
- The Earnings Per Share is expected to grow by 53.47% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y127.52%
EPS Next 2Y70.27%
EPS Next 3Y53.47%
EPS Next 5YN/A
Revenue Next Year4.53%
Revenue Next 2Y6.48%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for ATEME. In the last year negative earnings were reported.
- ATEME is valuated correctly with a Price/Forward Earnings ratio of 13.99.
- Based on the Price/Forward Earnings ratio, ATEME is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ATEME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ATEME is valued a bit cheaper than 61.29% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ATEME is valued a bit more expensive than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.97 | ||
| EV/EBITDA | 18.28 |
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.
- ATEME's earnings are expected to grow with 53.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.27%
EPS Next 3Y53.47%
5. Dividend
5.1 Amount
- No dividends for ATEME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ATEME SA / ATEME.PA FAQ
What is the fundamental rating for ATEME stock?
ChartMill assigns a fundamental rating of 3 / 10 to ATEME.PA.
What is the valuation status of ATEME SA (ATEME.PA) stock?
ChartMill assigns a valuation rating of 4 / 10 to ATEME SA (ATEME.PA). This can be considered as Fairly Valued.
How profitable is ATEME SA (ATEME.PA) stock?
ATEME SA (ATEME.PA) has a profitability rating of 3 / 10.