ENXTPA:ATO

Stock Analysis Report

Executive Summary

Atos SE provides information technology services and solutions worldwide.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

7.2%

ATO

1.9%

FR IT

1.0%

FR Market


1 Year Return

-1.4%

ATO

7.8%

FR IT

14.1%

FR Market

Return vs Industry: ATO underperformed the French IT industry which returned 7.8% over the past year.

Return vs Market: ATO underperformed the French Market which returned 14.1% over the past year.


Shareholder returns

ATOIndustryMarket
7 Day7.2%1.9%1.0%
30 Day10.1%-0.7%4.2%
90 Day11.3%-0.2%11.0%
1 Year32.9%-1.4%14.3%7.8%17.9%14.1%
3 Year10.0%-20.6%50.0%33.1%50.3%35.9%
5 Year92.1%35.3%138.6%107.4%71.7%46.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATO (€73.6) is trading below our estimate of fair value (€75.75)

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


Price To Earnings Ratio

PE vs Industry: ATO is good value based on its PE Ratio (13.9x) compared to the IT industry average (16.8x).

PE vs Market: ATO is good value based on its PE Ratio (13.9x) compared to the French market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ATO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ATO is good value based on its PB Ratio (1.2x) compared to the FR IT industry average (2.1x).


Next Steps

Future Growth

How is Atos forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATO's forecast earnings growth (15.8% per year) is above the savings rate (0.7%).

Earnings vs Market: ATO's earnings (15.8% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: ATO's revenue (1.7% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: ATO's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATO's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Atos performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ATO's current net profit margins (4.4%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: ATO's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: ATO's earnings growth over the past year (4%) is below its 5-year average (16.8% per year).

Earnings vs Industry: ATO earnings growth over the past year (4%) underperformed the IT industry 11.9%.


Return on Equity

High ROE: ATO's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atos's financial position?


Financial Position Analysis

Short Term Liabilities: ATO's short term assets (€6.6B) exceeds its short term liabilities (€6.0B)

Long Term Liabilities: ATO's short term assets (6.6B) exceeds its long term liabilities (6.4B)


Debt to Equity History and Analysis

Debt Level: ATO's debt to equity ratio (75.7%) is considered high

Reducing Debt: ATO's debt to equity ratio has increased from 19.6% to 75.7% over the past 5 years.

Debt Coverage: ATO's debt is well covered by operating cash flow (28.9%).

Interest Coverage: ATO's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATO's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%4.5%industryaverage1.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: ATO's dividend (2.31%) is higher than the bottom 25% of dividend payers in the French market (1.49%).

High Dividend: ATO's dividend (2.31%) is low compared to the top 25% of dividend payers in the French market (4.52%).


Stability and Growth of Payments

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

Growing Dividend: ATO's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32%), ATO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATO's dividends in 3 years are forecast to be well covered by earnings (20.3% payout ratio).


Next Steps

Management

What is the CEO of Atos's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Elie Girard (41yo)

0yrs

Tenure

0

Mr. Elie Girard has been Chief Executive Officer of Atos S.E. since November 1, 2019. He served as Deputy CEO at Atos S.E. since March 2019 until November 1, 2019. He had been the Chief Financial Officer o ...


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: ATO's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ATO's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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.


Management Team

  • Marc Meyer (60yo)

    Head of Executive & Talent Management

    • Tenure: 5.8yrs
  • Gilles Arditti (64yo)

    Head of Investor Relations & Financial Communications

    • Tenure: 4.3yrs
  • Peter Jong

    Head of Benelux & The Nordics

    • Tenure: 3.3yrs
  • Jean-Marie Simon

    Group Head of Institutional Relations

    • Tenure: 0yrs
  • Herbie Leung

    Head of Asia Pacific

    • Tenure: 0yrs
  • Philippe Mareine (48yo)

    Sr. EVP

    • Tenure: 5.8yrs
  • Elie Girard (41yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Uwe Stelter

    Chief Financial Officer

    • Tenure: 0yrs
  • Alexandre Menais

    General Secretary and Head of M&A

    • Tenure: 2.8yrs
  • Sophie Proust

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Nicolas Bazire (62yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: €45.50k
  • Bertrand Meunier (63yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: €49.25k
  • Vernon Sankey (70yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: €48.50k
  • Keith Wilman

    Chairman of UK & Ireland

    • Tenure: 7.8yrs
  • Valérie Irène Amélie Bernis (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: €36.50k
  • Colette Neuville (82yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: €39.50k
  • Lynn Paine (70yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: €41.75k
  • Roland Busch (55yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: €32.00k
  • Jean Fleming (50yo)

    Director

    • Tenure: 10.5yrs
    • Compensation: €35.00k
  • Aminata Niane (63yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: €41.00k

Company Information

Atos SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atos SE
  • Ticker: ATO
  • Exchange: ENXTPA
  • Founded: 1982
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €7.995b
  • Shares outstanding: 108.63m
  • Website: https://www.atos.net

Number of Employees


Location

  • Atos SE
  • River Ouest
  • 80 Quai Voltaire
  • Bezons
  • Ile-de-France
  • 95877
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATOENXTPA (Euronext Paris)YesBearer SharesFREURJan 1992
AXIDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
0DNHLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
AEXA.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
ATOPBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
ATOWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
AEXA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Atos SE provides information technology services and solutions worldwide. It offers infrastructure and data management services, including cloud services and digital workplace services, business and platfo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 20:40
End of Day Share Price2019/11/12 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.