ENXTPA:ALT

Stock Analysis Report

Altran Technologies

Executive Summary

Altran Technologies S.A. offers engineering consulting services in France, other European countries, the Americas, and Asia.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.03%

ALT

-0.8%

FR IT

-0.5%

FR Market


1 Year Return

77.8%

ALT

17.5%

FR IT

15.2%

FR Market

Return vs Industry: ALT exceeded the French IT industry which returned 17.5% over the past year.

Return vs Market: ALT exceeded the French Market which returned 15.2% over the past year.


Shareholder returns

ALTIndustryMarket
7 Day0.03%-0.8%-0.5%
30 Day1.2%0.03%0.6%
90 Day3.8%10.2%2.8%
1 Year80.9%77.8%25.2%17.5%19.2%15.2%
3 Year17.8%0.8%49.7%32.7%43.8%30.2%
5 Year107.6%72.3%124.0%94.8%52.3%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALT (€14.68) is trading below our estimate of fair value (€35.89)

Significantly Below Fair Value: ALT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALT is poor value based on its PE Ratio (37x) compared to the IT industry average (18.9x).

PE vs Market: ALT is poor value based on its PE Ratio (37x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALT is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ALT is overvalued based on its PB Ratio (2.2x) compared to the FR IT industry average (2.2x).


Next Steps

Future Growth

How is Altran Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALT's forecast earnings growth (22.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: ALT's earnings (22.4% per year) are forecast to grow faster than the French market (12.9% per year).

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

Revenue vs Market: ALT's revenue (6.1% per year) is forecast to grow faster than the French market (4.6% per year).

High Growth Revenue: ALT's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALT's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Altran Technologies performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALT has high quality earnings.

Growing Profit Margin: ALT's current net profit margins (4.5%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: ALT's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: ALT's earnings growth over the past year (78.5%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: ALT earnings growth over the past year (78.5%) exceeded the IT industry 12.9%.


Return on Equity

High ROE: ALT's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Altran Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ALT's short term assets (€1.3B) exceed its short term liabilities (€996.0M).

Long Term Liabilities: ALT's short term assets (€1.3B) do not cover its long term liabilities (€2.0B).


Debt to Equity History and Analysis

Debt Level: ALT's debt to equity ratio (95%) is considered high.

Reducing Debt: ALT's debt to equity ratio has increased from 68.6% to 95% over the past 5 years.

Debt Coverage: ALT's debt is well covered by operating cash flow (26.1%).

Interest Coverage: ALT's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALT's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%4.6%industryaverage1.8%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: ALT's dividend (1.63%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: ALT's dividend (1.63%) is low compared to the top 25% of dividend payers in the French market (4.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ALT has been paying a dividend for less than 10 years.

Growing Dividend: ALT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.4%), ALT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALT's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Dominique Cerutti (58yo)

4.7yrs

Tenure

€3,378,863

Compensation

Mr. Dominique Cerutti has been the Chairman and Chief Executive Officer at Altran Technologies S.A. since June 18, 2015 and serves as its President. Mr. Cerutti serves as the Chairman and Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Dominique's total compensation ($USD3.67M) is above average for companies of similar size in the French market ($USD1.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dominique Cerutti
Chairman4.7yrs€3.38m0.035% 1.3m
Albin Jacquemont
Executive VP & CFO3.4yrsno datano data
Keith Williams
Chief Technology Officer4yrsno datano data
Stéphanie Bia
Group Senior Vice President of Communications & Investor Relations2.6yrsno datano data
Bernard Billiard
VP & General Counsel6.4yrsno datano data
Eric Bachellereau
Senior Vice-President of Human Resources3.3yrsno datano data
Joseph Rousse
Head of Technical & Innovation Consulting14.3yrsno datano data
Pascal Brier
Executive Vice President of Strategy13.2yrsno datano data
Laurent Sicard
Head of French Operations13.2yrsno datano data
Mirko Neumann-Rystow
Chief Financial Officer of Germany & Austria6.6yrsno datano data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ALT's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominique Cerutti
Chairman4.7yrs€3.38m0.035% 1.3m
Christian Bret
Director7.7yrs€30.00k0.0024% 88.2k
Nathalie Rachou
Independent Director7.7yrs€80.00k0.0039% 146.9k
Martha Heitzmann-Crawford
Independent Director3.8yrs€77.69k0.0015% 55.7k
Renuka Uppaluri
Independent Director3.8yrs€28.85k0.0015% 55.7k
Jayashree Vaidhyanathan
Independent Director2.2yrs€26.54k0.0015% 55.7k
Diane de Saint Victor
Independent Director0.8yrsno datano data
Gaël Clément
Employee Representative Director0.4yrsno datano data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ALT's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.2%.


Top Shareholders

Company Information

Altran Technologies S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altran Technologies S.A.
  • Ticker: ALT
  • Exchange: ENXTPA
  • Founded: 1970
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €3.737b
  • Shares outstanding: 254.56m
  • Website: https://www.altran.com

Number of Employees


Location

  • Altran Technologies S.A.
  • 96, avenue Charles de Gaulle
  • Neuilly-sur-Seine
  • Ile-de-France
  • 92200
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALTK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ALTENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0IWKLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
ATCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ALTPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
ALTP NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
ALTK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2002

Biography

Altran Technologies S.A. offers engineering consulting services in France, other European countries, the Americas, and Asia. The company provides consulting services in fundamental transformations, innovation and design, and disruptive technologies and solutions; and digital transformation services, such as digital experience, Internet of Things, analytics and artificial intelligence, and digital applications, as well as cybersecurity, infrastructure, and cloud. It also provides product and systems engineering, industrial optimization and management, and engineering strategy and risk management services. The company serves the automotive; aeronautics; space, defense, and naval; rail, infrastructure, and transportation; energy; industrials and electronics; life sciences; telecom and media; finance and public; and semiconductors sectors. Altran Technologies S.A. was founded in 1970 and is headquartered in Neuilly-sur-Seine, France. As of February 10, 2020, Altran Technologies S.A. operates as a subsidiary of Capgemini SE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:34
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.