ENXTPA:ATA

Stock Analysis Report

Executive Summary

Atari SA operates as a multi-platform, interactive entertainment, and licensing products company.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ATA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.5%

ATA

2.1%

FR Entertainment

-4.5%

FR Market


1 Year Return

-7.5%

ATA

-26.6%

FR Entertainment

-21.8%

FR Market

Return vs Industry: ATA exceeded the French Entertainment industry which returned -26.6% over the past year.

Return vs Market: ATA exceeded the French Market which returned -21.8% over the past year.


Shareholder returns

ATAIndustryMarket
7 Day26.5%2.1%-4.5%
30 Day13.6%-13.9%-20.0%
90 Day-14.4%-23.0%-28.2%
1 Year-7.5%-7.5%-25.5%-26.6%-19.0%-21.8%
3 Year45.5%45.5%10.2%5.0%-2.5%-11.6%
5 Year48.6%45.5%4.5%-12.8%7.0%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATA (€0.29) is trading below our estimate of fair value (€0.31)

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


Price To Earnings Ratio

PE vs Industry: ATA is poor value based on its PE Ratio (73.9x) compared to the Entertainment industry average (24.6x).

PE vs Market: ATA is poor value based on its PE Ratio (73.9x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: ATA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ATA is overvalued based on its PB Ratio (3.2x) compared to the FR Entertainment industry average (1.7x).


Next Steps

Future Growth

How is Atari forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATA's forecast earnings growth (43.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: ATA's earnings (43.6% per year) are forecast to grow faster than the French market (12% per year).

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

Revenue vs Market: ATA's revenue (14.9% per year) is forecast to grow faster than the French market (3.5% per year).

High Growth Revenue: ATA's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATA's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Atari performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ATA's current net profit margins (4.9%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: ATA has become profitable over the past 5 years, growing earnings by 14.5% per year.

Accelerating Growth: ATA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATA had negative earnings growth (-66.7%) over the past year, making it difficult to compare to the Entertainment industry average (0.7%).


Return on Equity

High ROE: ATA's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Atari's financial position?


Financial Position Analysis

Short Term Liabilities: ATA's short term assets (€9.8M) do not cover its short term liabilities (€11.9M).

Long Term Liabilities: ATA's short term assets (€9.8M) exceed its long term liabilities (€3.8M).


Debt to Equity History and Analysis

Debt Level: ATA's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: ATA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ATA's debt is well covered by operating cash flow (143.8%).

Interest Coverage: Insufficient data to determine if ATA's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: ATA's debt is covered by short term assets (assets are 6.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ATA'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 ATA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATA'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 ATA's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

7.0yrs

Average board tenure


CEO

Frédéric Chesnais

no data

Tenure

€51,000

Compensation

Mr. Frédéric Chesnais has been Chairman of the Board and Chief Executive Officer of Atari, Inc., Atari Interactive Inc. and Atari société anonyme since February 2013. Mr. Chesnais founded Interactive Game  ...


CEO Compensation Analysis

Compensation vs Market: Frédéric's total compensation ($USD55.77K) is below average for companies of similar size in the French market ($USD318.36K).

Compensation vs Earnings: Frédéric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Frédéric Chesnais
Chairman & CEOno data€51.00k0.70% 545.5k
Frank Dangeard
Board Observer4yrsno datano data
Alyssa Walles
Independent Director7yrs€20.00kno data
Isabelle Andres
Independent Director2.58yrs€20.00kno data
Alexandre Zyngier
Non-Independent Directorno data€50.00kno data
Erick Euvrard
Independent Director7.17yrs€20.00kno data

7.0yrs

Average Tenure

Experienced Board: ATA's board of directors are considered experienced (7 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

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


Key Information

  • Name: Atari SA
  • Ticker: ATA
  • Exchange: ENXTPA
  • Founded: 1972
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: €77.843m
  • Shares outstanding: 267.50m
  • Website: https://www.atari.com

Number of Employees


Location

  • Atari SA
  • 25 Rue Godot de Mauroy
  • Paris
  • Ile-de-France
  • 75009
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PONG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1993
ATAENXTPA (Euronext Paris)YesCommon SharesFREURDec 1993
0KUVLSE (London Stock Exchange)YesCommon SharesGBEURDec 1993
IFGADB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1993
ATAPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURDec 1993
ATA SDBOM (OMX Nordic Exchange Stockholm)SDR EUR0.01SESEKApr 2019

Biography

Atari SA operates as a multi-platform, interactive entertainment, and licensing products company. The company offers video games; monetization of games through multiple channels, multimedia production, and licensing activities; online casino games, as well as grants licenses for cabinet and lottery tickets; online games for smartphones, tablets, and other connected devices; and Atari VCS, a modern gaming and video computer system blending consoles and PCs. It also develops and distributes interactive entertainment solutions for Microsoft, Sony, and Nintendo game consoles. In addition, the company provides games in the categories of action, adventure, arcade, kids, casual, first person shooter, free to play, horror, racing, simulation, sports, and strategy. It owns and/or manages a portfolio of approximately 200 games and franchises under the Asteroids, Centipede, Missile Command, Pong, Test Drive, and RollerCoaster Tycoon brands. The company was formerly known as Infogrames Entertainment SA and changed its name to Atari SA in May 2009. Atari SA was founded in 1972 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 23:09
End of Day Share Price2020/04/02 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.