OB:ATEA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


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 not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ATEA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

4.9%

ATEA

0.9%

NO IT

3.0%

NO Market


1 Year Return

-10.7%

ATEA

24.1%

NO IT

-1.9%

NO Market

Return vs Industry: ATEA underperformed the Norwegian IT industry which returned 25.6% over the past year.

Return vs Market: ATEA underperformed the Norwegian Market which returned -4.1% over the past year.


Shareholder returns

ATEAIndustryMarket
7 Day4.9%0.9%3.0%
30 Day-1.0%7.2%8.3%
90 Day11.0%3.0%6.8%
1 Year-6.8%-10.7%25.0%24.1%1.7%-1.9%
3 Year17.9%1.1%24.6%16.2%9.5%-2.8%
5 Year97.4%46.7%77.6%60.5%54.5%23.8%

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?

23.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATEA (NOK114.8) is trading above our estimate of fair value (NOK78.32)

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


Price To Earnings Ratio

PE vs Industry: ATEA is poor value based on its PE Ratio (24x) compared to the XE IT industry average (21x).

PE vs Market: ATEA is poor value based on its PE Ratio (24x) compared to the Norwegian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: ATEA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ATEA is overvalued based on its PB Ratio (3.3x) compared to the XE IT industry average (2.9x).


Next Steps

Future Growth

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

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEA's forecast earnings growth (17% per year) is above the savings rate (1.6%).

Earnings vs Market: ATEA's earnings (17% per year) are forecast to grow slower than the Norwegian market (33.8% per year).

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

Revenue vs Market: ATEA's revenue (5.2% per year) is forecast to grow slower than the Norwegian market (6.1% per year).

High Growth Revenue: ATEA's revenue (5.2% 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 (22.1%)


Next Steps

Past Performance

How has Atea performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEA has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: ATEA's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: ATEA's earnings growth over the past year (1.5%) is below its 5-year average (3.7% per year).

Earnings vs Industry: ATEA earnings growth over the past year (1.5%) underperformed the IT industry 6.8%.


Return on Equity

High ROE: ATEA's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

How is Atea's financial position?


Financial Position Analysis

Short Term Liabilities: ATEA's short term assets (NOK7.0B) do not cover its short term liabilities (NOK8.2B).

Long Term Liabilities: ATEA's short term assets (NOK7.0B) exceed its long term liabilities (NOK1.8B).


Debt to Equity History and Analysis

Debt Level: ATEA's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: ATEA's debt to equity ratio has reduced from 49.3% to 20% over the past 5 years.

Debt Coverage: ATEA's debt is well covered by operating cash flow (225.7%).

Interest Coverage: ATEA's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATEA's dividend (4.36%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.45%).

High Dividend: ATEA's dividend (4.36%) is low compared to the top 25% of dividend payers in the Norwegian market (6.03%).


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: With its high payout ratio (104.3%), ATEA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATEA's dividends in 3 years are not forecast to be well covered by earnings (90.9% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Steinar Sonsteby (58 yo)

6.83yrs

Tenure

kr16,364,000

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 serves as the D...


CEO Compensation Analysis

Compensation vs Market: Steinar's total compensation ($USD1.83M) is above average for companies of similar size in the Norwegian market ($USD570.52K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steinar Sonsteby
Chief Executive Officer6.83yrskr16.36m0.0018%
NOK 229.4k
Robert Giori
Chief Financial Officer6.25yrskr8.86m0.015%
NOK 1.9m
Carl-Johan Hultenheim
Chief Operating Officer0.083yrkr5.42m0.013%
NOK 1.6m
Juha Sihvonen
Managing Director of Atea Finland OY (Finland)12.5yrskr427.84kno data
Arunas Bartusevicius
Managing Director of Atea Baltic UAB (the Baltics)no datakr152.00k0.091%
NOK 11.5m
Michael Jacobs
Managing Director of Atea AS (Norway)4.67yrskr13.74mno data
Ole Fjellestad
Group Chief Accountantno datano data0.0050%
NOK 631.4k
Kathrine Forsberg
Managing Director of Atea Denmark0.83yrno datano data
Ignas Bartkus
Group Controllerno datano datano data
Ole Mjatvedt
Finance Director of Ementor Norge ASno datano datano data
Christian Stangeland
Director of Business Controlno datano data0.00091%
NOK 114.7k

5.5yrs

Average Tenure

54yo

Average Age

Experienced Management: ATEA's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Morten Jurs
Director10.58yrsno data0.00091%
NOK 114.7k
Svein-Tore Andersen
Alternate Directorno datano datano data
Ib Kunoe
Chairman of the Boardno datano data25.57%
NOK 3.2b
Truls Berntsen
Deputy Director0.58yrno datano data
Sven Madsen
Director12.58yrsno datano data
Marianne Urdahl
Director4.17yrsno data0.00070%
NOK 88.2k
Lisbeth Kvan
Director7.5yrsno datano data
Saloume Djoudat
Director5.58yrsno data0.0011%
NOK 137.4k
Arild Birkelund
Deputy Board Member2.5yrsno datano data
Christian Vage
Employee Elected Director0.58yrno datano data
Leiv Larsen
Director0.58yrno datano data
Espen Groden
Deputy Board Member0.58yrno datano data

3.3yrs

Average Tenure

56yo

Average Age

Experienced Board: ATEA's board of directors are considered experienced (3.3 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: kr12.604b
  • Shares outstanding: 109.79m
  • Website: https://www.atea.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATEAOB (Oslo Bors)YesOrdinary SharesNONOKMay 1989
MKLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1989
0JWOLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 1989
ATAZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1989
ATEAOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 1989

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 20:56
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.