BST:AYD

Stock Analysis Report

Executive Summary

ATEME SA, together with its subsidiaries, provides video delivery infrastructure solutions worldwide.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has ATEME's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AYD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

AYD

-7.1%

DE Communications

0.2%

DE Market


1 Year Return

27.4%

AYD

4.8%

DE Communications

14.4%

DE Market

Return vs Industry: AYD exceeded the German Communications industry which returned 4.8% over the past year.

Return vs Market: AYD exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

AYDIndustryMarket
7 Day4.2%-7.1%0.2%
30 Day27.2%-7.4%0.9%
90 Day29.5%-6.6%4.6%
1 Year27.4%27.4%5.4%4.8%17.9%14.4%
3 Yearn/a-6.0%-6.3%15.7%5.6%
5 Yearn/a88.9%88.5%23.4%6.5%

Price Volatility Vs. Market

How volatile is ATEME's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ATEME undervalued compared to its fair value and its price relative to the market?

16.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AYD (€13.86) is trading below our estimate of fair value (€16.62)

Significantly Below Fair Value: AYD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AYD is poor value based on its PE Ratio (40.6x) compared to the Communications industry average (20x).

PE vs Market: AYD is poor value based on its PE Ratio (40.6x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: AYD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AYD is overvalued based on its PB Ratio (7.2x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is ATEME forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AYD's forecast earnings growth (38% per year) is above the savings rate (-0.4%).

Earnings vs Market: AYD's earnings (38% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AYD's revenue (14.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: AYD's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AYD's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has ATEME performed over the past 5 years?

56.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AYD has a high level of non-cash earnings.

Growing Profit Margin: AYD's current net profit margins (5.9%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: AYD has become profitable over the past 5 years, growing earnings by 56.4% per year.

Accelerating Growth: AYD's earnings growth over the past year (907%) exceeds its 5-year average (56.4% per year).

Earnings vs Industry: AYD earnings growth over the past year (907%) exceeded the Communications industry 49.1%.


Return on Equity

High ROE: AYD's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ATEME's financial position?


Financial Position Analysis

Short Term Liabilities: AYD's short term assets (€37.4M) exceed its short term liabilities (€18.1M).

Long Term Liabilities: AYD's short term assets (€37.4M) exceed its long term liabilities (€6.7M).


Debt to Equity History and Analysis

Debt Level: AYD's debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: AYD's debt to equity ratio has reduced from 181.1% to 24.7% over the past 5 years.

Debt Coverage: AYD's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AYD's interest payments on its debt are well covered by EBIT (31.8x coverage).


Balance Sheet

Inventory Level: AYD has a low level of unsold assets or inventory.

Debt Coverage by Assets: AYD's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is ATEME's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AYD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AYD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AYD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AYD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AYD's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.8yrs

Average management tenure


CEO

Michel Artieres 0

17.9yrs

Tenure

€316,948

Compensation

Mr. Michel Artieres co-founded ATEME SA in 1991 and has been it's Chairman since November 17, 1997 and its Chief Executive Officer since March 27, 2002. Mr. Artieres was directed R&D in Image Processing an ...


CEO Compensation Analysis

Compensation vs Market: Michel's total compensation ($USD342.17K) is below average for companies of similar size in the German market ($USD625.38K).

Compensation vs Earnings: Michel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michel Artieres
Co-Founder17.9yrs€316.95k1.92% 2.7m
Fabrice Sana
Chief Financial Officer13.1yrsno datano data
Joseph Soueidi
Chief Operating Officer10.8yrsno datano data
Pierre Larbier
Chief Technology Officer0yrsno datano data
Eunsook Wi
Head of ATEME's Korean Office8.1yrsno datano data
Remi Beaudouin
Chief Strategy Officer1.1yrsno datano data

10.8yrs

Average Tenure

Experienced Management: AYD's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michel Artieres
Co-Founder17.9yrs€316.95k1.92% 2.7m
Jacques Galloy
Independent Director5.1yrs€21.00kno data
Laurent Cadieu
Director9.9yrsno datano data
Benoît Fouchard
Independent Director14.2yrs€15.75kno data
Joanna Darlington
Independent Director4.7yrs€15.75kno data

9.9yrs

Average Tenure

Experienced Board: AYD's board of directors are considered experienced (9.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ATEME SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ATEME SA
  • Ticker: AYD
  • Exchange: BST
  • Founded: 1991
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €139.701m
  • Shares outstanding: 10.43m
  • Website: https://www.ateme.com

Number of Employees


Location

  • ATEME SA
  • 6 rue Dewoitine
  • Vélizy-Villacoublay
  • Ile-de-France
  • 78140
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATEMEENXTPA (Euronext Paris)YesCommon StockFREURJul 2014
0QVWLSE (London Stock Exchange)YesCommon StockGBEURJul 2014
AYDBST (Boerse-Stuttgart)YesCommon StockDEEURJul 2014
ATEMEPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJul 2014

Biography

ATEME SA, together with its subsidiaries, provides video delivery infrastructure solutions worldwide. The company offers various solutions, such as TITAN Live, a software-based live video compression for distribution applications; TITAN Mux, a multi-function software stream processing solution; Titan Origin, a software-based origin server, recorder, and just-in-time packager; TITAN File, a file transcoder; and AMS, a unified network management system. It also provides KYRION CM5000, an ultra-low latency encoder; and KYRION DR5000, an ultra-low latency integrated receiver decoder. The company offers its products for cable, DTH, IPTV, terrestrial, OTT, teleport, and contribution markets. ATEME SA was founded in 1991 and is headquartered in Vélizy-Villacoublay, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:28
End of Day Share Price2020/02/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.