Alten (ENXTPA:ATE) - Share price, News & Analysis

Q: What is the Fair Price of ATE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ATE (€105.3) is trading below our estimate of [[fair value]] (€209.1)

ATE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

ATE Stock Overview

Rewards

Trading at 49.6% below our estimate of its fair value

Earnings are forecast to grow 11.37% per year

Earnings grew by 112.1% over the past year

Risk Analysis

No risks detected for ATE from our risk checks.

Alten Competitors

Sopra Steria Group

ENXTPA:SOP

€2.9b

Wavestone

ENXTPA:WAVE

€879.8m

Neurones

ENXTPA:NRO

€862.4m

SII

ENXTPA:SII

€776.0m

Price History & Performance

Summary of all time highs, changes and price drops for Alten
Historical stock prices
Current Share Price	€105.30
52 Week High	€163.30
52 Week Low	€103.20
Beta	1.53
1 Month Change	-15.42%
3 Month Change	-23.42%
1 Year Change	-5.81%
3 Year Change	-3.31%
5 Year Change	47.34%
Change since IPO	875.00%

Recent News & Updates

May 25

Return Trends At Alten (EPA:ATE) Aren't Appealing

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Apr 28

Are Investors Undervaluing Alten S.A. (EPA:ATE) By 37%?

How far off is Alten S.A. ( EPA:ATE ) from its intrinsic value? Using the most recent financial data, we'll take a look...

Mar 28

Alten (EPA:ATE) Seems To Use Debt Rather Sparingly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	ATE	FR IT	FR Market
7D	-2.7%	-2.6%	2.2%
1Y	-5.8%	-21.8%	-10.6%

Return vs Industry: ATE exceeded the French IT industry which returned -19.9% over the past year.

Return vs Market: ATE exceeded the French Market which returned -10.6% over the past year.

Price Volatility

Is ATE's price volatile compared to industry and market?
ATE volatility
ATE Average Weekly Movement	4.7%
IT Industry Average Movement	5.0%
Market Average Movement	4.9%
10% most volatile stocks in FR Market	9.1%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: ATE is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATE's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	42,300	Simon Azoulay	https://www.alten.com

Alten S.A. operates as an engineering and technology consultancy company in France, North America, Germany, Scandinavia, Benelux, Spain, Italy, the United Kingdom, the Asia-Pacific, Switzerland, Eastern Europe, and internationally. The company undertakes design and research projects for the technical and information systems divisions in the industrial, telecommunications, and service sectors. It offers engineering, and research and development outsourcing services, such as digital transformation; product design and development; manufacturing engineering; supply chain and quality; customer service and training; and project and change management services.

Alten Fundamentals Summary

How do Alten's earnings and revenue compare to its market cap?
ATE fundamental statistics
Market Cap	€3.58b
Earnings (TTM)	€207.84m
Revenue (TTM)	€2.93b

17.2x

P/E Ratio

1.2x

P/S Ratio

Is ATE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATE income statement (TTM)
Revenue	€2.93b
Cost of Revenue	€2.32b
Gross Profit	€603.92m
Other Expenses	€396.08m
Earnings	€207.84m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	6.12
Gross Margin	20.65%
Net Profit Margin	7.11%
Debt/Equity Ratio	6.5%

How did ATE perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

21%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ATE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ATE. This is calculated by dividing ATE's market cap by their current preferred multiple.
What is ATE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.58b

ATE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	11.3x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does ATE's PE Ratio compare to its peers?

ATE PE Ratio vs Peers

The above table shows the PE ratio for ATE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.2x
SOP Sopra Steria Group	15.6x	17.1%	€2.9b
WAVE Wavestone	17.2x	1.1%	€879.8m
NRO Neurones	22.9x	9.7%	€862.4m
SII SII	13.1x	3.1%	€776.0m
ATE Alten	17.2x	11.4%	€3.6b

Forward PE

Price-To-Earnings vs Peers: ATE is expensive based on its Price-To-Earnings Ratio (17.2x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

How does ATE's PE Ratio compare vs other companies in the FR IT Industry?

Price-To-Earnings vs Industry: ATE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the French IT industry average (19.9x)

Price to Earnings Ratio vs Fair Ratio

What is ATE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.2x
Fair PE Ratio	29.1x

Price-To-Earnings vs Fair Ratio: ATE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).

Share Price vs Fair Value

What is the Fair Price of ATE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATE (€105.3) is trading below our estimate of fair value (€209.1)

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

Price to Earnings Growth Ratio

PEG Ratio: ATE is poor value based on its PEG Ratio (1.5x)

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Future Growth

How is Alten forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATE's forecast earnings growth (11.4% per year) is above the savings rate (0.3%).

Earnings vs Market: ATE's earnings (11.4% per year) are forecast to grow slower than the French market (11.8% per year).

High Growth Earnings: ATE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATE's revenue (10.2% per year) is forecast to grow faster than the French market (5.9% per year).

High Growth Revenue: ATE's revenue (10.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ATE's Return on Equity is forecast to be low in 3 years time (14.1%).

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Past Performance

How has Alten performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATE has high quality earnings.

Growing Profit Margin: ATE's current net profit margins (7.1%) are higher than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: ATE's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: ATE's earnings growth over the past year (112.1%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: ATE earnings growth over the past year (112.1%) exceeded the IT industry 22%.

Return on Equity

High ROE: ATE's Return on Equity (14.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Alten's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATE's short term assets (€1.4B) exceed its short term liabilities (€920.6M).

Long Term Liabilities: ATE's short term assets (€1.4B) exceed its long term liabilities (€287.8M).

Debt to Equity History and Analysis

Debt Level: ATE has more cash than its total debt.

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

Debt Coverage: ATE's debt is well covered by operating cash flow (250.6%).

Interest Coverage: ATE's interest payments on its debt are well covered by EBIT (101.3x coverage).

Balance Sheet

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Dividend

What is Alten current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ATE's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.76%).

High Dividend: ATE's dividend (1.23%) is low compared to the top 25% of dividend payers in the French market (5.46%).

Stability and Growth of Payments

Stable Dividend: ATE's dividend payments have been volatile in the past 10 years.

Growing Dividend: ATE's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.2%), ATE's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (20.5%), ATE's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

9.4yrs

Average management tenure

CEO

Simon Azoulay (65 yo)

23.75yrs

Tenure

€806,000

Compensation

Mr. Simon Azoulay has been Manager of ABILOG Appointment Decision since April, 1996. Mr. Azoulay serves as Manager of Alten Benelux, Axen, Alten UK, Alten Esp and Sd Partners. He has been the Chairman and...

CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD843.89K) is below average for companies of similar size in the French market ($USD1.90M).

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

Leadership Team

Experienced Management: ATE's management team is seasoned and experienced (9.4 years average tenure).

Board Members

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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31