ATOS SE (ATO.PA)
FR0000051732 - Common Stock
We assign a fundamental rating of 2 out of 10 to ATO. ATO was compared to 79 industry peers in the IT Services industry. Both the profitability and financial health of ATO have multiple concerns. ATO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ATO has reported negative net income.
ATO had a positive operating cash flow in the past year.
In multiple years ATO reported negative net income over the last 5 years.
In the past 5 years ATO always reported a positive cash flow from operatings.
1.2 Ratios
ATO has negative profitability rations, so we won't be analyzing them here.
Looking at the Return On Invested Capital, with a value of 3.67%, ATO is doing worse than 69.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATO is significantly below the industry average of 12.27%.
The last Return On Invested Capital (3.67%) for ATO is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 3.67% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.29%
ROIC(5y)3.19%
1.3 Margins
Looking at the Operating Margin, with a value of 3.40%, ATO is doing worse than 72.00% of the companies in the same industry.
ATO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 70.60%, ATO is in the better half of the industry, outperforming 61.33% of the companies in the same industry.
ATO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.4% | ||
| PM | N/A | ||
| GM | 70.6% |
OM growth 3Y-38.08%
OM growth 5Y-27.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.28%
GM growth 5Y-2.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATO is still creating some value.
The number of shares outstanding for ATO remains at a similar level compared to 1 year ago.
ATO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that ATO is in the distress zone and has some risk of bankruptcy.
ATO has a worse Altman-Z score (0.95) than 86.67% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that ATO is somewhat dependend on debt financing.
The Debt to Equity ratio of ATO (0.99) is worse than 78.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACCN/A
WACC1.96%
2.3 Liquidity
ATO has a Current Ratio of 0.92. This is a bad value and indicates that ATO is not financially healthy enough and could expect problems in meeting its short term obligations.
ATO has a Current ratio of 0.92. This is in the lower half of the industry: ATO underperforms 78.67% of its industry peers.
A Quick Ratio of 0.90 indicates that ATO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, ATO is doing worse than 74.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
ATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.08%, which is quite impressive.
Looking at the last year, ATO shows a small growth in Revenue. The Revenue has grown by 3.17% in the last year.
ATO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.12% yearly.
EPS 1Y67.08%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q4.67%
Revenue growth 1Y3.17%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.12%
Revenue growth Q2Q-0.27%
3.2 Future
ATO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 160.24% yearly.
The Revenue is expected to decrease by -0.51% on average over the next years.
EPS Next Y1102.09%
EPS Next 2Y272.69%
EPS Next 3Y160.24%
EPS Next 5YN/A
Revenue Next Year-2.37%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.51%
Revenue Next 5YN/A
3.3 Evolution
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 negative for ATO. In the last year negative earnings were reported.
ATO is valuated cheaply with a Price/Forward Earnings ratio of 2.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a rather cheap valuation: ATO is cheaper than 98.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.85. ATO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.22 |
4.2 Price Multiples
94.67% of the companies in the same industry are more expensive than ATO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.62 |
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.
ATO's earnings are expected to grow with 160.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y272.69%
EPS Next 3Y160.24%
5. Dividend
5.1 Amount
ATO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATOS SE
EPA:ATO (9/29/2023, 7:00:00 PM)
6.608
+0.21 (+3.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap735.42M
Analysts47.78
Price Target10.21 (54.51%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)-44.89%
DP-3.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-211.39%
Min EPS beat(2)-211.39%
Max EPS beat(2)-211.39%
EPS beat(4)0
Avg EPS beat(4)-128.9%
Min EPS beat(4)-211.39%
Max EPS beat(4)-46.41%
Revenue beat(2)1
Avg Revenue beat(2)98583.7%
Min Revenue beat(2)98583.7%
Max Revenue beat(2)98583.7%
Revenue beat(4)2
Avg Revenue beat(4)100087%
Min Revenue beat(4)98583.7%
Max Revenue beat(4)101590%
PT rev (1m)-18.98%
PT rev (3m)-24.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.29%
EPS NY rev (3m)15.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.22 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 9.31 | ||
| P/B | 0.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.62 |
EPS(TTM)-0.2
EYN/A
EPS(NY)2.97
Fwd EY44.98%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)0.71
OCFY10.74%
SpS101.77
BVpS27.86
TBVpS-25.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | 4.99% | ||
| ROIC | 3.67% | ||
| ROICexc | 5.56% | ||
| ROICexgc | N/A | ||
| OM | 3.4% | ||
| PM | N/A | ||
| GM | 70.6% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.29%
ROIC(5y)3.19%
ROICexc(3y)3.27%
ROICexc(5y)4.2%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.11%
ROCE(5y)4.35%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-25.47%
ROICexc growth 5Y-27.73%
OM growth 3Y-38.08%
OM growth 5Y-27.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.28%
GM growth 5Y-2.04%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 31.9% | ||
| Cap/Sales | 2.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.95 |
F-Score5
WACC1.96%
ROIC/WACCN/A
Cap/Depr(3y)34.02%
Cap/Depr(5y)45%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y67.08%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q4.67%
EPS Next Y1102.09%
EPS Next 2Y272.69%
EPS Next 3Y160.24%
EPS Next 5YN/A
Revenue growth 1Y3.17%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.12%
Revenue growth Q2Q-0.27%
Revenue Next Year-2.37%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.51%
Revenue Next 5YN/A
EBIT growth 1Y410.48%
EBIT growth 3Y-38.52%
EBIT growth 5Y-28.3%
EBIT Next Year225.89%
EBIT Next 3Y58.09%
EBIT Next 5YN/A
FCF growth 1Y-122.62%
FCF growth 3Y-42.81%
FCF growth 5Y-24.36%
OCF growth 1Y-92.03%
OCF growth 3Y-30.37%
OCF growth 5Y-19.17%