ATEA ASA (ATEA.OL) Stock Fundamental Analysis
OSL:ATEA - Euronext Oslo - NO0004822503 - Common Stock - Currency: NOK
Overall ATEA gets a fundamental rating of 5 out of 10. We evaluated ATEA against 70 industry peers in the IT Services industry. ATEA has only an average score on both its financial health and profitability. ATEA has a correct valuation and a medium growth rate. 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.
ATEA had positive earnings in each of the past 5 years.
Each year in the past 5 years ATEA had a positive operating cash flow.
1.2 Ratios
ATEA has a Return On Assets of 3.68%. This is comparable to the rest of the industry: ATEA outperforms 44.62% of its industry peers.
With a decent Return On Equity value of 17.54%, ATEA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.43%, ATEA belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATEA is significantly above the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 17.54% | ||
| ROIC | 14.43% |
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 worse Profit Margin (2.24%) than 60.00% of its industry peers.
ATEA's Profit Margin has improved in the last couple of years.
ATEA has a Operating Margin of 3.50%. This is in the lower half of the industry: ATEA underperforms 66.15% of its industry peers.
ATEA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.07%, ATEA is doing worse than 72.31% of the companies in the same industry.
ATEA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.5% | ||
| PM (TTM) | 2.24% | ||
| GM | 30.07% |
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 well above the Cost of Capital (WACC), so ATEA is creating value.
Compared to 1 year ago, ATEA has more shares outstanding
Compared to 5 years ago, ATEA has more shares outstanding
Compared to 1 year ago, ATEA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that ATEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.59, ATEA perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
The Debt to FCF ratio of ATEA is 1.37, which is an excellent value as it means it would take ATEA, only 1.37 years of fcf income to pay off all of its debts.
ATEA's Debt to FCF ratio of 1.37 is fine compared to the rest of the industry. ATEA outperforms 80.00% of its industry peers.
ATEA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
ATEA's Debt to Equity ratio of 0.39 is in line compared to the rest of the industry. ATEA outperforms 58.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.7
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.94 indicates that ATEA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, ATEA is doing worse than 78.46% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that ATEA may have some problems paying its short term obligations.
ATEA's Quick ratio of 0.87 is on the low side compared to the rest of the industry. ATEA is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.33% over the past year.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
Looking at the last year, ATEA shows a decrease in Revenue. The Revenue has decreased by -0.35% in the last year.
Measured over the past years, ATEA shows a decrease in Revenue. The Revenue has been decreasing by -1.16% on average per year.
EPS 1Y (TTM)1.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%16.44%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%12.93%
3.2 Future
Based on estimates for the next years, ATEA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.14% on average per year.
Based on estimates for the next years, ATEA will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y26.82%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y6.17%
Revenue Next 3Y6.08%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ATEA is valuated rather expensively with a Price/Earnings ratio of 19.39.
Compared to the rest of the industry, the Price/Earnings ratio of ATEA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.78. ATEA is valued slightly cheaper when compared to this.
ATEA is valuated correctly with a Price/Forward Earnings ratio of 15.30.
ATEA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATEA is cheaper than 61.54% of the companies in the same industry.
ATEA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATEA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ATEA is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
ATEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ATEA may justify a higher PE ratio.
A more expensive valuation may be justified as ATEA's earnings are expected to grow with 22.14% in the coming years.
PEG (NY)0.72
PEG (5Y)2.26
EPS Next 2Y21.38%
EPS Next 3Y22.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, ATEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.37, ATEA pays a better dividend. On top of this ATEA pays more dividend than 83.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, ATEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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
ATEA pays out 100.77% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ATEA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.77%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
OSL:ATEA (4/25/2025, 7:00:00 PM)
140.4
+6.6 (+4.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.65%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap15.78B
Analysts78.33
Price Target155.72 (10.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend7.01
Dividend Growth(5Y)1.53%
DP100.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.97%
Min EPS beat(2)-6.69%
Max EPS beat(2)2.74%
EPS beat(4)2
Avg EPS beat(4)-0.82%
Min EPS beat(4)-32.76%
Max EPS beat(4)33.41%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)5
Avg EPS beat(12)-2.41%
EPS beat(16)8
Avg EPS beat(16)-1.06%
Revenue beat(2)1
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-7.84%
Max Revenue beat(2)2.61%
Revenue beat(4)1
Avg Revenue beat(4)-9.22%
Min Revenue beat(4)-22.73%
Max Revenue beat(4)2.61%
Revenue beat(8)1
Avg Revenue beat(8)-10.21%
Revenue beat(12)1
Avg Revenue beat(12)-14.05%
Revenue beat(16)1
Avg Revenue beat(16)-17.7%
PT rev (1m)-4.68%
PT rev (3m)-9.13%
EPS NQ rev (1m)-18.84%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-6.34%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.3 | ||
| P/S | 0.46 | ||
| P/FCF | 9.85 | ||
| P/OCF | 7.78 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.21 |
EPS(TTM)7.24
EY5.16%
EPS(NY)9.18
Fwd EY6.54%
FCF(TTM)14.26
FCFY10.15%
OCF(TTM)18.05
OCFY12.85%
SpS307.74
BVpS39.36
TBVpS-6.71
PEG (NY)0.72
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 17.54% | ||
| ROCE | 18.54% | ||
| ROIC | 14.43% | ||
| ROICexc | 20.82% | ||
| ROICexgc | N/A | ||
| OM | 3.5% | ||
| PM (TTM) | 2.24% | ||
| GM | 30.07% | ||
| FCFM | 4.63% |
ROA(3y)4.24%
ROA(5y)4.2%
ROE(3y)19.77%
ROE(5y)19.69%
ROIC(3y)16.22%
ROIC(5y)15.36%
ROICexc(3y)21.54%
ROICexc(5y)20.76%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.83%
ROCE(5y)19.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y0.9%
ROICexc growth 5Y0.34%
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%
F-Score6
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 57.88% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 104.21% | ||
| Profit Quality | 206.44% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.59 |
F-Score6
WACC8.5%
ROIC/WACC1.7
Cap/Depr(3y)56.41%
Cap/Depr(5y)54.8%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.07%
Profit Quality(3y)158.62%
Profit Quality(5y)151.25%
High Growth Momentum
Growth
EPS 1Y (TTM)1.33%
EPS 3Y-0.21%
EPS 5Y8.6%
EPS Q2Q%16.44%
EPS Next Y26.82%
EPS Next 2Y21.38%
EPS Next 3Y22.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.67%
Revenue growth 5Y-1.16%
Sales Q2Q%12.93%
Revenue Next Year8.76%
Revenue Next 2Y6.17%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
EBIT growth 1Y-2.65%
EBIT growth 3Y5%
EBIT growth 5Y10.15%
EBIT Next Year74.83%
EBIT Next 3Y26.73%
EBIT Next 5YN/A
FCF growth 1Y2.96%
FCF growth 3Y27.77%
FCF growth 5Y0.38%
OCF growth 1Y7.99%
OCF growth 3Y22.77%
OCF growth 5Y1.34%