ALTEN SA (ATE.PA) Stock Fundamental Analysis
EPA:ATE - Euronext Paris - Matif - FR0000071946 - Common Stock - Currency: EUR
ATE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. While ATE has a great health rating, its profitability is only average at the moment. ATE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATE was profitable.
In the past year ATE had a positive cash flow from operations.
In the past 5 years ATE has always been profitable.
ATE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATE's Return On Assets of 5.12% is fine compared to the rest of the industry. ATE outperforms 61.97% of its industry peers.
With a Return On Equity value of 8.44%, ATE is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
ATE has a better Return On Invested Capital (10.08%) than 67.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATE is in line with the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.44% | ||
| ROIC | 10.08% |
ROA(3y)8.51%
ROA(5y)7.6%
ROE(3y)14.92%
ROE(5y)13.49%
ROIC(3y)11.24%
ROIC(5y)10.54%
1.3 Margins
With a decent Profit Margin value of 4.50%, ATE is doing good in the industry, outperforming 61.97% of the companies in the same industry.
ATE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.62%, ATE is doing good in the industry, outperforming 69.01% of the companies in the same industry.
In the last couple of years the Operating Margin of ATE has declined.
ATE's Gross Margin of 89.45% is amongst the best of the industry. ATE outperforms 80.28% of its industry peers.
ATE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | 4.5% | ||
| GM | 89.45% |
OM growth 3Y-5.37%
OM growth 5Y-2.37%
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
ATE 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, ATE has more shares outstanding
The number of shares outstanding for ATE has been increased compared to 5 years ago.
Compared to 1 year ago, ATE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.66 indicates that ATE is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.66, ATE is doing good in the industry, outperforming 74.65% of the companies in the same industry.
ATE has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.90, ATE belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ATE is not too dependend on debt financing.
ATE's Debt to Equity ratio of 0.09 is amongst the best of the industry. ATE outperforms 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.75
WACC13.49%
2.3 Liquidity
ATE has a Current Ratio of 1.52. This is a normal value and indicates that ATE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, ATE is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
ATE has a Quick Ratio of 1.52. 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 (1.52) is better than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for ATE have decreased strongly by -20.99% in the last year.
Measured over the past 5 years, ATE shows a small growth in Earnings Per Share. The EPS has been growing by 1.91% on average per year.
Looking at the last year, ATE shows a small growth in Revenue. The Revenue has grown by 1.83% in the last year.
The Revenue has been growing by 9.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-20.99%
EPS 3Y-4.08%
EPS 5Y1.91%
EPS Q2Q%-45.28%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%0.71%
3.2 Future
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y5.76%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPS Next 5Y2.78%
Revenue Next Year-0.29%
Revenue Next 2Y1.39%
Revenue Next 3Y2.53%
Revenue Next 5Y2.01%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.32, the valuation of ATE can be described as correct.
Based on the Price/Earnings ratio, ATE is valued a bit cheaper than 74.65% of the companies in the same industry.
ATE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 10.34, the valuation of ATE can be described as very reasonable.
ATE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ATE is cheaper than 81.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ATE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATE is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
ATE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATE is cheaper than 83.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.52 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ATE may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)7.48
EPS Next 2Y9.45%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
ATE has a Yearly Dividend Yield of 1.90%.
ATE's Dividend Yield is comparable with the industry average which is at 6.93.
ATE's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of ATE is nicely growing with an annual growth rate of 8.51%!
Dividend Growth(5Y)8.51%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ATE pays out 27.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of ATE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.95%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPA:ATE (7/4/2025, 7:00:00 PM)
76.35
-2.5 (-3.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.53%
Inst Owner ChangeN/A
Ins Owners14.67%
Ins Owner ChangeN/A
Market Cap2.69B
Analysts75
Price Target101.49 (32.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.5
Dividend Growth(5Y)8.51%
DP27.95%
Div Incr Years0
Div Non Decr Years4
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%
PT rev (3m)-10.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 10.34 | ||
| P/S | 0.65 | ||
| P/FCF | 6.52 | ||
| P/OCF | 6.26 | ||
| P/B | 1.22 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)5.33
EY6.98%
EPS(NY)7.38
Fwd EY9.67%
FCF(TTM)11.7
FCFY15.33%
OCF(TTM)12.2
OCFY15.98%
SpS117.47
BVpS62.64
TBVpS22.96
PEG (NY)2.48
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.44% | ||
| ROCE | 14.47% | ||
| ROIC | 10.08% | ||
| ROICexc | 11.41% | ||
| ROICexgc | 31.82% | ||
| OM | 8.62% | ||
| PM (TTM) | 4.5% | ||
| GM | 89.45% | ||
| FCFM | 9.96% |
ROA(3y)8.51%
ROA(5y)7.6%
ROE(3y)14.92%
ROE(5y)13.49%
ROIC(3y)11.24%
ROIC(5y)10.54%
ROICexc(3y)13.47%
ROICexc(5y)12.75%
ROICexgc(3y)34.98%
ROICexgc(5y)33.58%
ROCE(3y)16.23%
ROCE(5y)15.2%
ROICexcg growth 3Y-16.88%
ROICexcg growth 5Y-5.91%
ROICexc growth 3Y-11.85%
ROICexc growth 5Y-8.9%
OM growth 3Y-5.37%
OM growth 5Y-2.37%
PM growth 3Y-14.13%
PM growth 5Y-6.39%
GM growth 3Y-0.01%
GM growth 5Y-0.44%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 18.68% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.34% | ||
| Profit Quality | 221.43% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.66 |
F-Score6
WACC13.49%
ROIC/WACC0.75
Cap/Depr(3y)24.2%
Cap/Depr(5y)22.75%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.54%
Profit Quality(3y)120.95%
Profit Quality(5y)153.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.99%
EPS 3Y-4.08%
EPS 5Y1.91%
EPS Q2Q%-45.28%
EPS Next Y5.76%
EPS Next 2Y9.45%
EPS Next 3Y11.12%
EPS Next 5Y2.78%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y12.3%
Revenue growth 5Y9.57%
Sales Q2Q%0.71%
Revenue Next Year-0.29%
Revenue Next 2Y1.39%
Revenue Next 3Y2.53%
Revenue Next 5Y2.01%
EBIT growth 1Y2.11%
EBIT growth 3Y6.28%
EBIT growth 5Y6.97%
EBIT Next Year25.31%
EBIT Next 3Y13.87%
EBIT Next 5Y7.83%
FCF growth 1Y87.47%
FCF growth 3Y24.28%
FCF growth 5Y14.86%
OCF growth 1Y78.5%
OCF growth 3Y22.94%
OCF growth 5Y13.91%