ATEA ASA (ATEA.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ATEA - NO0004822503 - Common Stock
158.4 NOK
-0.6 (-0.38%)
ATEA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 industry peers in the IT Services industry. Both the profitability and the financial health of ATEA get a neutral evaluation. Nothing too spectacular is happening here. ATEA is valied quite expensively at the moment, while it does show a decent growth rate. Finally ATEA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ATEA had positive earnings in the past year.
- In the past year ATEA had a positive cash flow from operations.
- In the past 5 years ATEA has always been profitable.
- ATEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ATEA has a Return On Assets of 4.69%. This is comparable to the rest of the industry: ATEA outperforms 53.95% of its industry peers.
- The Return On Equity of ATEA (19.22%) is better than 78.95% of its industry peers.
- With an excellent Return On Invested Capital value of 16.13%, ATEA belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ATEA is significantly below the industry average of 25.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 19.22% | ||
| ROIC | 16.13% |
ROA(3y)4.24%
ROA(5y)4.2%
ROE(3y)19.77%
ROE(5y)19.69%
ROIC(3y)16.22%
ROIC(5y)15.36%
1.3 Margins
- ATEA has a Profit Margin of 2.17%. This is in the lower half of the industry: ATEA underperforms 60.53% of its industry peers.
- In the last couple of years the Profit Margin of ATEA has grown nicely.
- ATEA has a worse Operating Margin (3.54%) than 64.47% of its industry peers.
- ATEA's Operating Margin has improved in the last couple of years.
- ATEA has a worse Gross Margin (29.44%) than 73.68% of its industry peers.
- ATEA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.54% | ||
| PM (TTM) | 2.17% | ||
| GM | 29.44% |
OM growth 3Y-1.56%
OM growth 5Y11.43%
PM growth 3Y-5.64%
PM growth 5Y9.16%
GM growth 3Y0.47%
GM growth 5Y7.27%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATEA is still creating some value.
- Compared to 1 year ago, ATEA has more shares outstanding
- ATEA has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ATEA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that ATEA is not in any danger for bankruptcy at the moment.
- ATEA's Altman-Z score of 3.44 is fine compared to the rest of the industry. ATEA outperforms 68.42% of its industry peers.
- The Debt to FCF ratio of ATEA is 3.18, which is a good value as it means it would take ATEA, 3.18 years of fcf income to pay off all of its debts.
- ATEA has a Debt to FCF ratio of 3.18. This is comparable to the rest of the industry: ATEA outperforms 51.32% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that ATEA is not too dependend on debt financing.
- ATEA has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: ATEA outperforms 48.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.1
WACC14.65%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that ATEA may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.88, ATEA is doing worse than 81.58% of the companies in the same industry.
- A Quick Ratio of 0.78 indicates that ATEA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.78, ATEA is doing worse than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.93% over the past year.
- The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
- ATEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.11%.
- The Revenue has been decreasing by -1.16% on average over the past years.
EPS 1Y (TTM)7.93%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%16.96%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%5.64%
3.2 Future
- The Earnings Per Share is expected to grow by 16.90% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y9.08%
EPS Next 2Y18.94%
EPS Next 3Y16.9%
EPS Next 5YN/A
Revenue Next Year8.34%
Revenue Next 2Y7.82%
Revenue Next 3Y7.36%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 21.35 indicates a rather expensive valuation of ATEA.
- ATEA's Price/Earnings ratio is in line with the industry average.
- ATEA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 15.48, ATEA is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEA is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, ATEA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
- ATEA's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ATEA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATEA does not grow enough to justify the current Price/Earnings ratio.
- ATEA's earnings are expected to grow with 16.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.35
PEG (5Y)2.48
EPS Next 2Y18.94%
EPS Next 3Y16.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.32%, ATEA is a good candidate for dividend investing.
- ATEA's Dividend Yield is rather good when compared to the industry average which is at 2.10. ATEA pays more dividend than 85.53% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, ATEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
- The dividend of ATEA has a limited annual growth rate of 1.53%.
Dividend Growth(5Y)1.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 97.87% of the earnings are spent on dividend by ATEA. This is not a sustainable payout ratio.
- ATEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.87%
EPS Next 2Y18.94%
EPS Next 3Y16.9%
ATEA ASA / ATEA.OL FAQ
Can you provide the ChartMill fundamental rating for ATEA ASA?
ChartMill assigns a fundamental rating of 5 / 10 to ATEA.OL.
What is the valuation status of ATEA ASA (ATEA.OL) stock?
ChartMill assigns a valuation rating of 3 / 10 to ATEA ASA (ATEA.OL). This can be considered as Overvalued.
What is the profitability of ATEA stock?
ATEA ASA (ATEA.OL) has a profitability rating of 5 / 10.
Can you provide the financial health for ATEA stock?
The financial health rating of ATEA ASA (ATEA.OL) is 4 / 10.
Can you provide the expected EPS growth for ATEA stock?
The Earnings per Share (EPS) of ATEA ASA (ATEA.OL) is expected to grow by 9.08% in the next year.