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 71 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ATE was profitable.
ATE had a positive operating cash flow in the past year.
ATE had positive earnings in each of the past 5 years.
Each year in the past 5 years ATE had a positive operating cash flow.
1.2 Ratios
ATE has a better Return On Assets (6.87%) than 76.92% of its industry peers.
ATE's Return On Equity of 11.30% is in line compared to the rest of the industry. ATE outperforms 49.23% of its industry peers.
With a decent Return On Invested Capital value of 10.77%, ATE is doing good in the industry, outperforming 70.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATE is in line with the industry average of 10.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 11.3% | ||
| ROIC | 10.77% |
ROA(3y)9.44%
ROA(5y)8.18%
ROE(3y)16.98%
ROE(5y)14.75%
ROIC(3y)12.82%
ROIC(5y)12.11%
1.3 Margins
ATE's Profit Margin of 5.82% is fine compared to the rest of the industry. ATE outperforms 66.15% of its industry peers.
In the last couple of years the Profit Margin of ATE has declined.
With a decent Operating Margin value of 8.38%, ATE is doing good in the industry, outperforming 61.54% of the companies in the same industry.
ATE's Operating Margin has declined in the last couple of years.
ATE has a better Gross Margin (89.20%) than 76.92% 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 3Y13.67%
OM growth 5Y-2.12%
PM growth 3Y10.89%
PM growth 5Y-3.8%
GM growth 3Y-0.49%
GM growth 5Y-0.6%
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.
Compared to 1 year ago, ATE has more shares outstanding
The number of shares outstanding for ATE has been increased compared to 5 years ago.
The debt/assets ratio for ATE has been reduced compared to a year ago.
2.2 Solvency
ATE has an Altman-Z score of 3.91. This indicates that ATE is financially healthy and has little risk of bankruptcy at the moment.
ATE has a better Altman-Z score (3.91) than 87.69% of its industry peers.
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.
ATE's Debt to FCF ratio of 1.05 is amongst the best of the industry. ATE outperforms 89.23% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ATE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.09, ATE belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.49
WACC7.21%
2.3 Liquidity
ATE has a Current 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.
ATE's Current ratio of 1.66 is fine compared to the rest of the industry. ATE outperforms 73.85% of its industry peers.
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.
ATE has a better Quick ratio (1.66) than 78.46% 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.
ATE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.70% yearly.
Looking at the last year, ATE shows a small growth in Revenue. The Revenue has grown by 3.09% in the last year.
The Revenue has been growing by 12.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-44.05%
EPS 3Y33.06%
EPS 5Y7.7%
EPS Q2Q%6.03%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y20.39%
Revenue growth 5Y12.38%
Sales Q2Q%2.94%
3.2 Future
The Earnings Per Share is expected to decrease by -0.46% on average over the next years.
ATE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.08% yearly.
EPS Next Y-14.9%
EPS Next 2Y-7.89%
EPS Next 3Y-0.46%
EPS Next 5YN/A
Revenue Next Year0.87%
Revenue Next 2Y0.36%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ATE is valuated correctly with a Price/Earnings ratio of 12.58.
78.46% of the companies in the same industry are more expensive than ATE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ATE is valued rather cheaply.
The Price/Forward Earnings ratio is 12.18, which indicates a correct valuation of ATE.
69.23% of the companies in the same industry are more expensive than ATE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATE to the average of the S&P500 Index (92.74), we can say ATE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATE is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATE indicates a somewhat cheap valuation: ATE is cheaper than 67.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.91 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
ATE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y-7.89%
EPS Next 3Y-0.46%
5. Dividend
5.1 Amount
ATE has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
ATE's Dividend Yield is comparable with the industry average which is at 4.29.
Compared to the average S&P500 Dividend Yield of 2.28, ATE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
43.08% of the earnings are spent on dividend by ATE. This is a bit on the high side, but may be sustainable.
DP43.08%
EPS Next 2Y-7.89%
EPS Next 3Y-0.46%
ALTEN SA
EPA:ATE (2/5/2025, 5:29:55 PM)
87.15
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners51.37%
Inst Owner ChangeN/A
Ins Owners14.7%
Ins Owner ChangeN/A
Market Cap3.07B
Analysts78.33
Price Target112.16 (28.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)-0.4%
PT rev (3m)-13.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 12.18 | ||
| P/S | 0.74 | ||
| P/FCF | 8.91 | ||
| P/OCF | 8.48 | ||
| P/B | 1.45 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 7 |
EPS(TTM)6.93
EY7.95%
EPS(NY)7.15
Fwd EY8.21%
FCF(TTM)9.78
FCFY11.22%
OCF(TTM)10.28
OCFY11.8%
SpS117.07
BVpS60.27
TBVpS26.88
PEG (NY)N/A
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 11.3% | ||
| ROCE | 14.49% | ||
| ROIC | 10.77% | ||
| ROICexc | 12.32% | ||
| ROICexgc | 28.02% | ||
| OM | 8.38% | ||
| PM (TTM) | 5.82% | ||
| GM | 89.2% | ||
| FCFM | 8.35% |
ROA(3y)9.44%
ROA(5y)8.18%
ROE(3y)16.98%
ROE(5y)14.75%
ROIC(3y)12.82%
ROIC(5y)12.11%
ROICexc(3y)16.18%
ROICexc(5y)15.02%
ROICexgc(3y)43.96%
ROICexgc(5y)37.92%
ROCE(3y)17.23%
ROCE(5y)16.27%
ROICexcg growth 3Y12.81%
ROICexcg growth 5Y-4.05%
ROICexc growth 3Y15.2%
ROICexc growth 5Y-5.49%
OM growth 3Y13.67%
OM growth 5Y-2.12%
PM growth 3Y10.89%
PM growth 5Y-3.8%
GM growth 3Y-0.49%
GM growth 5Y-0.6%
F-Score8
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 | 3.91 |
F-Score8
WACC7.21%
ROIC/WACC1.49
Cap/Depr(3y)25.59%
Cap/Depr(5y)24.95%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.6%
Profit Quality(3y)81.63%
Profit Quality(5y)134.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-44.05%
EPS 3Y33.06%
EPS 5Y7.7%
EPS Q2Q%6.03%
EPS Next Y-14.9%
EPS Next 2Y-7.89%
EPS Next 3Y-0.46%
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y20.39%
Revenue growth 5Y12.38%
Sales Q2Q%2.94%
Revenue Next Year0.87%
Revenue Next 2Y0.36%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
EBIT growth 1Y-5.87%
EBIT growth 3Y36.84%
EBIT growth 5Y10%
EBIT Next Year22.1%
EBIT Next 3Y11.44%
EBIT Next 5YN/A
FCF growth 1Y102.42%
FCF growth 3Y-9.3%
FCF growth 5Y21.73%
OCF growth 1Y89.42%
OCF growth 3Y-7.78%
OCF growth 5Y19.41%