ATOS SE (ATO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ATO - FR001400X2S4 - Common Stock
59.53 EUR
-0.67 (-1.11%)
Overall ATO gets a fundamental rating of 3 out of 10. We evaluated ATO against 70 industry peers in the IT Services industry. ATO has a bad profitability rating. Also its financial health evaluation is rather negative. ATO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ATO was profitable.
- In the past year ATO had a positive cash flow from operations.
- In multiple years ATO reported negative net income over the last 5 years.
- The reported operating cash flow has been mixed in the past 5 years: ATO reported negative operating cash flow in multiple years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.81%, ATO belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- ATO has a worse Return On Invested Capital (1.81%) than 77.14% of its industry peers.
- ATO had an Average Return On Invested Capital over the past 3 years of 2.45%. This is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.81% | ||
| ROE | N/A | ||
| ROIC | 1.81% |
ROA(3y)-11.21%
ROA(5y)-9.64%
ROE(3y)-2046.76%
ROE(5y)-1239.8%
ROIC(3y)2.45%
ROIC(5y)2.24%
1.3 Margins
- Looking at the Profit Margin, with a value of 17.29%, ATO belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- ATO's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 1.48%, ATO is doing worse than 77.14% of the companies in the same industry.
- ATO's Operating Margin has declined in the last couple of years.
- The Gross Margin of ATO (76.31%) is better than 64.29% of its industry peers.
- In the last couple of years the Gross Margin of ATO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.48% | ||
| PM (TTM) | 17.29% | ||
| GM | 76.31% |
OM growth 3Y31.87%
OM growth 5Y-26.21%
PM growth 3YN/A
PM growth 5Y-38.46%
GM growth 3Y1.71%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATO is destroying value.
- The number of shares outstanding for ATO has been increased compared to 1 year ago.
- Compared to 5 years ago, ATO has more shares outstanding
- The debt/assets ratio for ATO has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.24, we must say that ATO is in the distress zone and has some risk of bankruptcy.
- ATO has a worse Altman-Z score (1.24) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.38
WACC4.71%
2.3 Liquidity
- ATO has a Current Ratio of 1.47. This is a normal value and indicates that ATO is financially healthy and should not expect problems in meeting its short term obligations.
- ATO's Current ratio of 1.47 is fine compared to the rest of the industry. ATO outperforms 68.57% of its industry peers.
- A Quick Ratio of 1.42 indicates that ATO should not have too much problems paying its short term obligations.
- ATO's Quick ratio of 1.42 is fine compared to the rest of the industry. ATO outperforms 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 184.71% over the past year.
- The earnings per share for ATO have been decreasing by -33.23% on average. This is quite bad
- Looking at the last year, ATO shows a very negative growth in Revenue. The Revenue has decreased by -14.60% in the last year.
- Measured over the past years, ATO shows a decrease in Revenue. The Revenue has been decreasing by -3.74% on average per year.
EPS 1Y (TTM)184.71%
EPS 3YN/A
EPS 5Y-33.23%
EPS Q2Q%97.12%
Revenue 1Y (TTM)-14.6%
Revenue growth 3Y-4.04%
Revenue growth 5Y-3.74%
Sales Q2Q%-19.02%
3.2 Future
- The Earnings Per Share is expected to grow by 19.15% on average over the next years. This is quite good.
- ATO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.68% yearly.
EPS Next Y96.59%
EPS Next 2Y42.11%
EPS Next 3Y26.61%
EPS Next 5Y19.15%
Revenue Next Year-13.46%
Revenue Next 2Y-12.06%
Revenue Next 3Y-8.27%
Revenue Next 5Y-2.68%
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
- ATO is valuated cheaply with a Price/Earnings ratio of 0.02.
- Compared to the rest of the industry, the Price/Earnings ratio of ATO indicates a rather cheap valuation: ATO is cheaper than 100.00% of the companies listed in the same industry.
- ATO is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- ATO is valuated correctly with a Price/Forward Earnings ratio of 13.81.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ATO indicates a somewhat cheap valuation: ATO is cheaper than 68.57% of the companies listed in the same industry.
- ATO is valuated rather 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 | 0.02 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
- 95.71% 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 | 3.33 |
4.3 Compensation for Growth
- ATO's 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 26.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y42.11%
EPS Next 3Y26.61%
5. Dividend
5.1 Amount
- ATO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ATOS SE / ATO.PA FAQ
What is the fundamental rating for ATO stock?
ChartMill assigns a fundamental rating of 3 / 10 to ATO.PA.
What is the valuation status for ATO stock?
ChartMill assigns a valuation rating of 6 / 10 to ATOS SE (ATO.PA). This can be considered as Fairly Valued.
What is the profitability of ATO stock?
ATOS SE (ATO.PA) has a profitability rating of 3 / 10.
What is the expected EPS growth for ATOS SE (ATO.PA) stock?
The Earnings per Share (EPS) of ATOS SE (ATO.PA) is expected to grow by 96.59% in the next year.
Can you provide the dividend sustainability for ATO stock?
The dividend rating of ATOS SE (ATO.PA) is 0 / 10 and the dividend payout ratio is 0.07%.