OB:ATEA

Stock Analysis Report

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Market Cap

kr18.7b

Last Updated

2021/07/31 03:55 UTC

Data Sources

Company Financials +

Executive Summary

Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ATEA is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ATEA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

ATEA

-0.3%

NO IT

0.2%

NO Market


1 Year Return

60.7%

ATEA

37.2%

NO IT

31.8%

NO Market

Return vs Industry: ATEA exceeded the Norwegian IT industry which returned 37.2% over the past year.

Return vs Market: ATEA exceeded the Norwegian Market which returned 31.8% over the past year.


Shareholder returns

ATEAIndustryMarket
7 Day-1.2%-0.3%0.2%
30 Day0.8%3.3%0.2%
90 Day5.5%-0.9%2.0%
1 Year70.3%60.7%38.6%37.2%36.6%31.8%
3 Year65.3%43.4%68.0%59.0%18.2%4.8%
5 Year162.1%99.9%101.9%82.3%76.9%44.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATEA (NOK168.4) is trading below our estimate of fair value (NOK235.56)

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


Price To Earnings Ratio

PE vs Industry: ATEA is poor value based on its PE Ratio (26.5x) compared to the Norwegian IT industry average (26x).

PE vs Market: ATEA is poor value based on its PE Ratio (26.5x) compared to the Norwegian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: ATEA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ATEA is good value based on its PB Ratio (5.5x) compared to the NO IT industry average (5.9x).


Future Growth

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

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEA's forecast earnings growth (15.2% per year) is above the savings rate (1.2%).

Earnings vs Market: ATEA's earnings (15.2% per year) are forecast to grow faster than the Norwegian market (10% per year).

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

Revenue vs Market: ATEA's revenue (4.4% per year) is forecast to grow slower than the Norwegian market (5.5% per year).

High Growth Revenue: ATEA's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATEA's Return on Equity is forecast to be high in 3 years time (26%)


Past Performance

How has Atea performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEA has high quality earnings.

Growing Profit Margin: ATEA's current net profit margins (1.7%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: ATEA's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: ATEA's earnings growth over the past year (37.8%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: ATEA earnings growth over the past year (37.8%) exceeded the IT industry 34.8%.


Return on Equity

High ROE: ATEA's Return on Equity (20.8%) is considered high.


Financial Health

How is Atea's financial position?


Financial Position Analysis

Short Term Liabilities: ATEA's short term assets (NOK7.8B) do not cover its short term liabilities (NOK9.1B).

Long Term Liabilities: ATEA's short term assets (NOK7.8B) exceed its long term liabilities (NOK1.8B).


Debt to Equity History and Analysis

Debt Level: ATEA's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: ATEA's debt to equity ratio has reduced from 51.8% to 14.3% over the past 5 years.

Debt Coverage: ATEA's debt is well covered by operating cash flow (313%).

Interest Coverage: ATEA's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Dividend

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

2.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATEA's dividend (2.97%) is higher than the bottom 25% of dividend payers in the Norwegian market (2%).

High Dividend: ATEA's dividend (2.97%) is low compared to the top 25% of dividend payers in the Norwegian market (5.32%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.6%), ATEA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATEA's dividends in 3 years are forecast to be covered by earnings (76.1% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Steinar Sonsteby (59 yo)

7.5yrs

Tenure

kr7,399,000

Compensation

Mr. Steinar Sonsteby has been the Chief Executive Officer of Atea ASA since February 2014 and served as its President and Acting Managing Director of Atea Norway AS until March 11, 2016. He is Board Member...


CEO Compensation Analysis

Compensation vs Market: Steinar's total compensation ($USD837.24K) is above average for companies of similar size in the Norwegian market ($USD576.86K).

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


Leadership Team

Experienced Management: ATEA's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: ATEA's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATEA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Atea ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atea ASA
  • Ticker: ATEA
  • Exchange: OB
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr18.742b
  • Shares outstanding: 111.29m
  • Website: https://www.atea.com

Number of Employees


Location

  • Atea ASA
  • Karvesvingen 5
  • Box 6472
  • Oslo
  • Oslo
  • 605
  • Norway

Listings


Biography

Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions. The company offers hardware and software solutions for s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 03:55
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.