ENXTPA:ATE

Stock Analysis Report

Executive Summary

Alten SA operates as an engineering and technology consultancy company primarily in France, North America, Germany, Scandinavia, Spain, the United Kingdom, Italy, Belgium, the Netherlands, and the Asia-Pacific.

Rewards

Trading at 4.1% below its fair value

Earnings are forecast to grow 9.43% per year

Earnings have grown 15.4% per year over the past 5 years

Risk Analysis

No risks detected for ATE from our risk checks.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.09%

ATE

1.0%

FR IT

1.0%

FR Market


1 Year Return

26.6%

ATE

19.2%

FR IT

17.2%

FR Market

Return vs Industry: ATE exceeded the French IT industry which returned 19.2% over the past year.

Return vs Market: ATE exceeded the French Market which returned 17.2% over the past year.


Shareholder returns

ATEIndustryMarket
7 Day0.09%1.0%1.0%
30 Day-4.7%2.8%-0.3%
90 Day11.5%13.5%3.3%
1 Year27.9%26.6%26.8%19.2%21.3%17.2%
3 Year65.8%60.1%51.3%34.1%43.9%30.3%
5 Year216.7%193.5%132.7%101.6%56.4%34.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATE (€112.2) is trading below our estimate of fair value (€117.01)

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


Price To Earnings Ratio

PE vs Industry: ATE is poor value based on its PE Ratio (23.5x) compared to the IT industry average (18.7x).

PE vs Market: ATE is poor value based on its PE Ratio (23.5x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: ATE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: ATE is overvalued based on its PB Ratio (3.7x) compared to the FR IT industry average (2.3x).


Next Steps

Future Growth

How is Alten forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATE's forecast earnings growth (9.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: ATE's earnings (9.4% per year) are forecast to grow slower than the French market (13.4% per year).

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

Revenue vs Market: ATE's revenue (6.6% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: ATE's revenue (6.6% 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 (15.4%).


Next Steps

Past Performance

How has Alten performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATE has high quality earnings.

Growing Profit Margin: ATE's current net profit margins (6.5%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: ATE's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: ATE's earnings growth over the past year (7.1%) is below its 5-year average (15.4% per year).

Earnings vs Industry: ATE earnings growth over the past year (7.1%) underperformed the IT industry 11.9%.


Return on Equity

High ROE: ATE's Return on Equity (15.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alten's financial position?


Financial Position Analysis

Short Term Liabilities: ATE's short term assets (€1.1B) exceed its short term liabilities (€753.3M).

Long Term Liabilities: ATE's short term assets (€1.1B) exceed its long term liabilities (€161.7M).


Debt to Equity History and Analysis

Debt Level: ATE's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: ATE's debt to equity ratio has increased from 8.7% to 13.5% over the past 5 years.

Debt Coverage: ATE's debt is well covered by operating cash flow (123.7%).

Interest Coverage: ATE's interest payments on its debt are well covered by EBIT (114x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATE's debt is covered by short term assets (assets are 8.2x debt).


Next Steps

Dividend

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

0.89%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%4.5%industryaverage1.8%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ATE's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: ATE's dividend (0.89%) is low compared to the top 25% of dividend payers in the French market (4.5%).


Stability and Growth of Payments

Stable Dividend: ATE is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: ATE is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ATE is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATE'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?

14.1yrs

Average management tenure


CEO

Simon Azoulay (63yo)

21.4yrs

Tenure

€762,289

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 ($USD826.51K) is below average for companies of similar size in the French market ($USD1.76M).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Azoulay
Chairman & CEO21.4yrs€762.29k15.14% 572.0m
Gérald Attia
Deputy CEO & Director22.1yrs€288.02k0.52% 19.8m
Pierre Marcel
Deputy Chief Executive Officer of ALTEN France & Solutions subsidiaries7.1yrs€383.57k0.0025% 94.1k
Luc Dallery
Head of Human Resources0yrsno datano data
Bruno Benoliel
Deputy Chief Executive Officer0yrs€334.72kno data
V. Ignacio
Managing Director of ALTEN - Madrid0yrsno datano data
Stéphane Ougier
Executive Vice President of ALTEN Technology France & Solutions Subsidiaries0yrsno datano data
Pierre Bonhomme
Executive Vice President of Alten Technology France3.3yrsno datano data
Gualtiero Bazzana
CEO & MD of ALTEN Italia0yrsno datano data
Jose Herrera
HR Business Partner Director of ALTEN Spain0yrsno datano data

14.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ATE's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Azoulay
Chairman & CEO21.4yrs€762.29k15.14% 572.0m
Gérald Attia
Deputy CEO & Director22.1yrs€288.02k0.52% 19.8m
Marc Eisenberg
Independent Director5.7yrs€13.50kno data
Emily Azoulay
Director8.7yrs€12.00k0.0059% 224.5k
Jane Seroussi
Director5.7yrs€9.00kno data
Evelyne Feldman
Independent Director3.8yrs€16.50kno data
Philippe Tribaudeau
Independent Director3.8yrs€10.50kno data
Aliette Mardyks
Independent Director2.7yrs€16.50kno data
Marwane Metioui
Director Representating Employees2.2yrsno datano data

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: ATE's board of directors are considered experienced (5.7 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

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


Key Information

  • Name: Alten SA
  • Ticker: ATE
  • Exchange: ENXTPA
  • Founded: 1988
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €3.779b
  • Shares outstanding: 33.68m
  • Website: https://www.alten.fr

Number of Employees


Location

  • Alten SA
  • 40, avenue André Morizet
  • Cedex
  • Boulogne-Billancourt
  • Ile-de-France
  • 92513
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AN3DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1999
ATEENXTPA (Euronext Paris)YesCommon SharesFREURFeb 1999
ABLG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1999
0O1SLSE (London Stock Exchange)YesCommon SharesGBEURFeb 1999
ATEPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURFeb 1999

Biography

Alten SA operates as an engineering and technology consultancy company primarily in France, North America, Germany, Scandinavia, Spain, the United Kingdom, Italy, Belgium, the Netherlands, and the Asia-Pacific. The company carries out design and research projects for the technical and information systems divisions in the industrial, telecommunications, and service sectors. It offers engineering and technology consulting services, including study and design of technological products; services for telecoms and multimedia networks comprising product design, architecture, deployment, and operation of networks; and information systems architecture, software development, third-party application acceptance, support, and operation services. The company serves customers in automotive, rail and naval, energy and life sciences, finance and services, telecom, multimedia, defense and security, aerospace, and other industries. Alten SA was founded in 1988 and is headquartered in Boulogne-Billancourt, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:54
End of Day Share Price2020/02/14 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.