ENXTPA:ATE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


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

-0.8%

ATE

1.3%

FR IT

-0.4%

FR Market


1 Year Return

-35.6%

ATE

-0.7%

FR IT

-8.9%

FR Market

Return vs Industry: ATE underperformed the French IT industry which returned -0.7% over the past year.

Return vs Market: ATE underperformed the French Market which returned -8.9% over the past year.


Shareholder returns

ATEIndustryMarket
7 Day-0.8%1.3%-0.4%
30 Day-6.6%7.3%-0.9%
90 Day5.7%24.1%11.5%
1 Year-35.6%-35.6%-0.08%-0.7%-7.0%-8.9%
3 Year-3.5%-5.5%19.8%7.4%9.2%0.09%
5 Year64.5%56.1%74.8%54.2%23.2%6.5%

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?

14.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATE (€69.6) is trading above our estimate of fair value (€55.63)

Significantly Below Fair Value: ATE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATE is good value based on its PE Ratio (14.2x) compared to the FR IT industry average (16.9x).

PE vs Market: ATE is good value based on its PE Ratio (14.2x) compared to the French market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATE is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ATE is overvalued based on its PB Ratio (2.1x) compared to the FR IT industry average (1.8x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATE's forecast earnings growth (4% per year) is above the savings rate (0.6%).

Earnings vs Market: ATE's earnings (4% per year) are forecast to grow slower than the French market (13.1% per year).

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

Revenue vs Market: ATE's revenue (2.3% per year) is forecast to grow slower than the French market (3.9% per year).

High Growth Revenue: ATE's revenue (2.3% 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 (11%).


Next Steps

Past Performance

How has Alten performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATE has high quality earnings.

Growing Profit Margin: ATE's current net profit margins (6.3%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: ATE's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: ATE's earnings growth over the past year (4%) is below its 5-year average (13.3% per year).

Earnings vs Industry: ATE earnings growth over the past year (4%) underperformed the IT industry 4%.


Return on Equity

High ROE: ATE's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is Alten's financial position?


Financial Position Analysis

Short Term Liabilities: ATE's short term assets (€1.2B) exceed its short term liabilities (€755.4M).

Long Term Liabilities: ATE's short term assets (€1.2B) exceed its long term liabilities (€181.4M).


Debt to Equity History and Analysis

Debt Level: ATE's debt to equity ratio (11.5%) is considered satisfactory.

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 (175.8%).

Interest Coverage: ATE's interest payments on its debt are well covered by EBIT (84.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATE's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.72%).

High Dividend: ATE's dividend (1.44%) is low compared to the top 25% of dividend payers in the French market (4.89%).


Stability and Growth of Payments

Stable Dividend: ATE's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.4%), ATE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATE's dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).


Next Steps

Management

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

14.5yrs

Average management tenure


CEO

Simon Azoulay (64yo)

21.83yrs

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 ($USD0.00) is below average for companies of similar size in the French market ($USD1.80M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simon Azoulay
Chairman & CEO21.83yrs€762.29k4.74% 111.3m
Gerald Attia
Deputy CEO & Director22.5yrs€288.02k0.65% 15.3m
Pierre Marcel
Deputy Chief Executive Officer of ALTEN France & Solutions Subsidiaries7.5yrs€383.57k0.17% 3.9m
Bruno Benoliel
Chief Operating Officerno data€334.72kno data
Luc Dallery
Head of Human Resourcesno datano datano data
V. Ignacio
Managing Director of ALTEN - Madridno datano datano data
Gualtiero Bazzana
Executive VP ALTEN France for Enterprise Services & Telecomsno datano datano data
Stéphane Ougier
Executive Vice President of ALTEN France & Solutions subsidiariesno datano datano data
Pierre Bonhomme
Executive Vice President of ALTEN France3.67yrsno datano data
Pascal Amoré
Executive Vice President of ALTEN for Asiano datano datano data

14.5yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ATE's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Azoulay
Chairman & CEO21.83yrs€762.29k4.74% 111.3m
Gerald Attia
Deputy CEO & Director22.5yrs€288.02k0.65% 15.3m
Marc Eisenberg
Independent Director6.08yrs€13.50kno data
Emily Azoulay
Director9.08yrs€12.00k0.0056% 132.3k
Jane Seroussi
Director6.08yrs€9.00kno data
Evelyne Feldman
Independent Director4.17yrs€16.50kno data
Philippe Tribaudeau
Independent Lead Directorno data€10.50kno data
Aliette Mardyks
Independent Director3.08yrs€16.50kno data
Marwane Metioui
Director Representating Employees2.58yrsno datano data

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: ATE's board of directors are considered experienced (6.1 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 S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alten S.A.
  • Ticker: ATE
  • Exchange: ENXTPA
  • Founded: 1988
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €2.346b
  • Shares outstanding: 33.71m
  • Website: https://www.alten.fr

Number of Employees


Location

  • Alten S.A.
  • 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 S.A. operates as an engineering and technology consultancy company primarily in France, North America, Germany, Scandinavia, Spain, Portugal, the United Kingdom, Italy, Belgium, the Netherlands, the Asia-Pacific, and internationally. The company carries out design and research projects for the technical and information systems divisions in the industrial, telecommunications, and service sectors. It offers outsourced engineering and research and development 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. The company also provides information technology and network services comprising consulting and digital transformation; technical services for digital, big data, data science, and artificial intelligence; development, maintenance, and testing of applications; and cloud, and networks and security infrastructure services. The company serves customers in automotive, rail and naval, energy, life sciences, banking, finance, insurance, services, telecommunications and multimedia, defense and security, aerospace, public, and other industries. Alten S.A. 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 Analysis2020/07/11 20:56
End of Day Share Price2020/07/10 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.