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ATOS will rise after financial restructuring

JO
josh56432Invested
Community Contributor

Published

January 15 2025

Updated

January 17 2025

Post Financial Restructuring, ATOS has been given a credit rating of B- by Fitch and S&P, Giving greater confidence that the extra liquidity generated and restructured debt and debt reduction techniques has stabilised the company from default. The large market share ATOS holds in Critical infrastructure gives it a unique immunity to bankruptcy. The new CEO is Phillipe Salle is dedicated to profit over stock price, focusing on turning ATOS around, holding onto it's more profitable AI and Quantum branches (Eviden) whilst delegating the less profitable sectors and performing headcount reduction to 90,000 employees. All of this has a stable outlook to return to a pre-collapse market cap of £5-10B, giving retail investors a unique oppurtunity. Creditors now own 98% of shares, most priced at 0.06 meaning there is no short term incentive to liquidate their holdings.

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Disclaimer

The user josh56432 has a position in ENXTPA:ATO. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
€0.2
98.6% undervalued intrinsic discount
josh56432's Fair Value
Future estimation in
PastFuture-5b12b2014201720202023202420262029Revenue €149.4mEarnings €1.5m
% p.a.
Decrease
Increase
Current revenue growth rate
-1.40%
IT revenue growth rate
0.36%