ATEME (ENXTPA:ATEME) - Share price, News & Analysis

ATEME fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

ATEME Stock Overview

ATEME SA, together with its subsidiaries, provides video compression and delivery solutions worldwide.

Rewards

Earnings are forecast to grow 42.71% per year

Became profitable this year

Risk Analysis

Volatile share price over the past 3 months

ATEME Competitors

Amazon.com

NasdaqGS:AMZN

US$1.1t

Cisco Systems

NasdaqGS:CSCO

US$180.1b

CommScope Holding Company

NasdaqGS:COMM

US$1.4b

Harmonic

NasdaqGS:HLIT

US$968.6m

Price History & Performance

Summary of all time highs, changes and price drops for ATEME
Historical stock prices
Current Share Price	€13.62
52 Week High	€16.46
52 Week Low	€8.59
Beta	0.64
1 Month Change	13.69%
3 Month Change	34.32%
1 Year Change	-12.80%
3 Year Change	37.99%
5 Year Change	-27.78%
Change since IPO	202.00%

Shareholder Returns

	ATEME	FR Communications	FR Market
7D	-3.7%	-0.2%	-1.5%
1Y	-12.8%	-5.4%	-18.8%

Return vs Industry: ATEME underperformed the French Communications industry which returned -5.4% over the past year.

Return vs Market: ATEME exceeded the French Market which returned -18.8% over the past year.

Price Volatility

Is ATEME's price volatile compared to industry and market?
ATEME volatility
ATEME Average Weekly Movement	7.8%
Communications Industry Average Movement	6.6%
Market Average Movement	6.0%
10% most volatile stocks in FR Market	10.2%
10% least volatile stocks in FR Market	3.5%

Stable Share Price: ATEME is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ATEME's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

Founded	Employees	CEO	Website
1991	488	Michel Artieres	https://www.ateme.com

ATEME SA, together with its subsidiaries, provides video compression and delivery solutions worldwide. The company offers various solutions, such as TITAN Live, a software-based live video compression for the converged headend; TITAN File, a video transcoding transcoder; TITAN Mux, a multi-function software stream processing solution; TITAN Playout; KYRION CM5000e, an ultra-low latency encoder; TITAN Edge encoder; TITAN Edge decoder; and TITAN Edge gateway. It also provides NEA-CDN, a OTT scale service solution; NEA-DVR, a unlimited recording on every screen; NEA-Live, a broadcast-quality, low-latency, live, and time-shifted TV services; NEA-Composer, a dynamic Ad insertion and linear origination solutions; PILOT Media, a cloud native media supply chain solution; and PILOT Manager, a cloud native management system.

ATEME Fundamentals Summary

How do ATEME's earnings and revenue compare to its market cap?
ATEME fundamental statistics
Market Cap	€152.87m
Earnings (TTM)	€1.79m
Revenue (TTM)	€78.80m

85.6x

P/E Ratio

1.9x

P/S Ratio

Is ATEME overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATEME income statement (TTM)
Revenue	€78.80m
Cost of Revenue	€29.84m
Gross Profit	€48.96m
Other Expenses	€47.17m
Earnings	€1.79m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.16
Gross Margin	62.13%
Net Profit Margin	2.27%
Debt/Equity Ratio	54.9%

How did ATEME perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

85.64x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ATEME (€13.62) is trading above our estimate of fair value (€2.53)

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

Price To Earnings Ratio

PE vs Industry: ATEME is poor value based on its Price-To-Earnings Ratio (85.6x) compared to the French Communications industry average (27.7x).

PE vs Market: ATEME is poor value based on its Price-To-Earnings Ratio (85.6x) compared to the French market (16.1x).

Price to Earnings Growth Ratio

PEG Ratio: ATEME is poor value based on its PEG Ratio (2x)

Price to Book Ratio

PB vs Industry: ATEME is overvalued based on its Price-To-Book Ratio (3.9x) compared to the FR Communications industry average (1.8x).

Future Growth

How is ATEME forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

42.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEME's forecast earnings growth (42.7% per year) is above the savings rate (0.3%).

Earnings vs Market: ATEME's earnings (42.7% per year) are forecast to grow faster than the French market (11.9% per year).

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

Revenue vs Market: ATEME's revenue (11% per year) is forecast to grow faster than the French market (5.8% per year).

High Growth Revenue: ATEME's revenue (11% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ATEME's Return on Equity is forecast to be low in 3 years time (10.1%).

Past Performance

How has ATEME performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATEME has high quality earnings.

Growing Profit Margin: ATEME became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ATEME's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: ATEME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ATEME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (75.4%).

Return on Equity

High ROE: ATEME's Return on Equity (4.5%) is considered low.

Financial Health

How is ATEME's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: ATEME's short term assets (€62.8M) exceed its short term liabilities (€34.9M).

Long Term Liabilities: ATEME's short term assets (€62.8M) exceed its long term liabilities (€18.7M).

Debt to Equity History and Analysis

Debt Level: ATEME's net debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: ATEME's debt to equity ratio has increased from 28.9% to 54.9% over the past 5 years.

Debt Coverage: ATEME's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ATEME's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATEME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ATEME's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATEME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATEME's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ATEME has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.8yrs

Average management tenure

CEO

Michel Artieres

31.33yrs

Tenure

€365,033

Compensation

Mr. Michel Artieres co-founded ATEME SA in 1991 and has been it's Chairman since November 17, 1997 and its Chief Executive Officer since March 27, 2002. Mr. Artieres has been President of the Board of Dire...

CEO Compensation Analysis

Compensation vs Market: Michel's total compensation ($USD391.67K) is about average for companies of similar size in the French market ($USD399.32K).

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

Leadership Team

Experienced Management: ATEME's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: ATEME's board of directors are considered experienced (3.5 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	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31