ALTEN SA (ATE.PA) Stock Fundamental Analysis
EPA:ATE - Euronext Paris - Matif - FR0000071946 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ATE. ATE was compared to 75 industry peers in the IT Services industry. ATE has an excellent financial health rating, but there are some minor concerns on its profitability. ATE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ATE had positive earnings in the past year.
In the past year ATE had a positive cash flow from operations.
Each year in the past 5 years ATE has been profitable.
Each year in the past 5 years ATE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.87%, ATE is doing good in the industry, outperforming 78.67% of the companies in the same industry.
With a Return On Equity value of 11.30%, ATE perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
ATE has a better Return On Invested Capital (10.02%) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 11.3% | ||
| ROIC | 10.02% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.82%, ATE is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ATE has declined.
ATE has a better Operating Margin (8.38%) than 68.00% of its industry peers.
ATE's Operating Margin has declined in the last couple of years.
ATE has a Gross Margin of 89.20%. This is in the better half of the industry: ATE outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of ATE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.38% | ||
| PM (TTM) | 5.82% | ||
| GM | 89.2% |
OM growth 3Y-6.02%
OM growth 5Y-2.78%
PM growth 3Y-14.13%
PM growth 5Y-6.39%
GM growth 3Y-0.01%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATE is still creating some value.
ATE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.16 indicates that ATE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.16, ATE belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
ATE has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.05, ATE belongs to the top of the industry, outperforming 89.33% of the companies in the same industry.
ATE has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, ATE belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.33
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.66 indicates that ATE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.66, ATE is doing good in the industry, outperforming 77.33% of the companies in the same industry.
ATE has a Quick Ratio of 1.66. This is a normal value and indicates that ATE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ATE (1.66) is better than 81.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for ATE have decreased strongly by -44.05% in the last year.
The Earnings Per Share has been growing slightly by 2.05% on average over the past years.
The Revenue has been growing slightly by 3.09% in the past year.
The Revenue has been growing by 9.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-44.05%
EPS 3Y-3.86%
EPS 5Y2.05%
EPS Q2Q%6.03%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%2.94%
3.2 Future
Based on estimates for the next years, ATE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y2.17%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y3.93%
Revenue Next 3Y4.85%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.89, ATE is valued correctly.
77.33% of the companies in the same industry are more expensive than ATE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ATE to the average of the S&P500 Index (29.35), we can say ATE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.47, the valuation of ATE can be described as correct.
Based on the Price/Forward Earnings ratio, ATE is valued a bit cheaper than 64.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ATE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATE.
Based on the Price/Free Cash Flow ratio, ATE is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.86
PEG (5Y)7.25
EPS Next 2Y8.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATE has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 4.27, ATE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, ATE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of ATE is nicely growing with an annual growth rate of 8.38%!
Dividend Growth(5Y)8.38%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
ATE pays out 43.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
ATE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.08%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPA:ATE (3/7/2025, 7:00:00 PM)
103.2
-1 (-0.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.94%
Inst Owner ChangeN/A
Ins Owners14.67%
Ins Owner ChangeN/A
Market Cap3.64B
Analysts75
Price Target113.73 (10.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend1.5
Dividend Growth(5Y)8.38%
DP43.08%
Div Incr Years2
Div Non Decr Years3
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.4%
PT rev (3m)0.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.61%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.47 | ||
| P/S | 0.88 | ||
| P/FCF | 10.56 | ||
| P/OCF | 10.04 | ||
| P/B | 1.71 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)6.93
EY6.72%
EPS(NY)7.13
Fwd EY6.91%
FCF(TTM)9.78
FCFY9.47%
OCF(TTM)10.28
OCFY9.96%
SpS117.07
BVpS60.27
TBVpS26.88
PEG (NY)6.86
PEG (5Y)7.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 11.3% | ||
| ROCE | 14.49% | ||
| ROIC | 10.02% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 26.07% | ||
| OM | 8.38% | ||
| PM (TTM) | 5.82% | ||
| GM | 89.2% | ||
| FCFM | 8.35% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.02%
OM growth 5Y-2.78%
PM growth 3Y-14.13%
PM growth 5Y-6.39%
GM growth 3Y-0.01%
GM growth 5Y-0.44%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 17.81% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.36% | ||
| Profit Quality | 143.5% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.16 |
F-Score7
WACC7.55%
ROIC/WACC1.33
Cap/Depr(3y)21.29%
Cap/Depr(5y)21.01%
Cap/Sales(3y)0.52%
Cap/Sales(5y)0.53%
Profit Quality(3y)121.45%
Profit Quality(5y)153.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-44.05%
EPS 3Y-3.86%
EPS 5Y2.05%
EPS Q2Q%6.03%
EPS Next Y2.17%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%2.94%
Revenue Next Year2.94%
Revenue Next 2Y3.93%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y-5.87%
EBIT growth 3Y5.54%
EBIT growth 5Y6.52%
EBIT Next Year28.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y76.84%
FCF growth 3Y24.56%
FCF growth 5Y15.01%
OCF growth 1Y62.64%
OCF growth 3Y22.94%
OCF growth 5Y13.91%