WSE:ATM

Stock Analysis Report

Executive Summary

ATM S.A. provides telecommunications and value-added services in Poland and internationally.

Rewards

Trading at 84.3% below its fair value

Earnings grew by 151.6% over the past year

Risk Analysis

Earnings have declined by -12.45% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 24.6% is not well covered by earnings

Large one-off items impacting financial results

+ 2 more risks


Snowflake Analysis

Acceptable track record second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ATM

3.8%

PL Telecom

-0.09%

PL Market


1 Year Return

31.6%

ATM

24.5%

PL Telecom

-7.7%

PL Market

Return vs Industry: ATM exceeded the Polish Telecom industry which returned 24.5% over the past year.

Return vs Market: ATM exceeded the Polish Market which returned -7.7% over the past year.


Shareholder returns

ATMIndustryMarket
7 Day0%3.8%-0.09%
30 Day1.2%-6.8%-2.0%
90 Day2.0%7.2%-1.1%
1 Year31.6%31.6%24.6%24.5%-4.9%-7.7%
3 Year16.6%-9.1%38.8%34.9%-4.4%-11.2%
5 Year16.2%-11.3%-11.6%-22.4%3.0%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATM (PLN10) is trading below our estimate of fair value (PLN63.79)

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


Price To Earnings Ratio

PE vs Industry: ATM is poor value based on its PE Ratio (166x) compared to the Telecom industry average (22.7x).

PE vs Market: ATM is poor value based on its PE Ratio (166x) compared to the Polish market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ATM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATM is overvalued based on its PB Ratio (2.2x) compared to the PL Telecom industry average (1x).


Next Steps

Future Growth

How is ATM forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.3%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ATM has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ATM performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATM has a large one-off loss of PLN5.4M impacting its September 30 2019 financial results.

Growing Profit Margin: ATM's current net profit margins (1.6%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: ATM's earnings have declined by -12.5% per year over the past 5 years.

Accelerating Growth: ATM's earnings growth over the past year (151.6%) exceeds its 5-year average (-12.5% per year).

Earnings vs Industry: ATM earnings growth over the past year (151.6%) exceeded the Telecom industry 60.6%.


Return on Equity

High ROE: ATM's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ATM's financial position?


Financial Position Analysis

Short Term Liabilities: ATM's short term assets (PLN46.3M) do not cover its short term liabilities (PLN61.9M).

Long Term Liabilities: ATM's short term assets (PLN46.3M) do not cover its long term liabilities (PLN356.1M).


Debt to Equity History and Analysis

Debt Level: ATM's debt to equity ratio (137.9%) is considered high.

Reducing Debt: ATM's debt to equity ratio has increased from 43% to 137.9% over the past 5 years.

Debt Coverage: ATM's debt is well covered by operating cash flow (27.6%).

Interest Coverage: ATM's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: ATM has a high level of physical assets or inventory.

Debt Coverage by Assets: ATM's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

24.60%

Current Dividend Yield


Dividend Yield vs Market

company24.6%marketbottom25%2.3%markettop25%6.7%industryaverage12.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ATM's dividend (24.6%) is higher than the bottom 25% of dividend payers in the Polish market (2.33%).

High Dividend: ATM's dividend (24.6%) is in the top 25% of dividend payers in the Polish market (6.74%)


Stability and Growth of Payments

Stable Dividend: ATM's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (4082.5%), ATM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Daniel Szczesniewski 0

0.9yrs

Tenure

0

Mr. Daniel Szczesniewski serves as President of the Management Board at ATM S.A. since March 19, 2019. He has 15 years of experience in telecommunications. He started his career at Energis Polska. After th ...


Board Members

NamePositionTenureCompensationOwnership
Piotr Sieluk
Vice Chairman of Supervisory Board0yrsno datano data
Maciej Kowalski
Member of the Supervisory Board3.8yrsno datano data
Sebastian Millinder
Member of the Supervisory Board1.3yrsno datano data
Mariusz Grendowicz
Supervisory Board Chairman1.3yrsno datano data
Przemyslaw Glebocki
Member of the Supervisory Board2.2yrsno datano data
Tomasz Jacygrad
Member of the Supervisory Board2.2yrsno datano data
Tomasz Czechowicz
Member of the Supervisory Board0.8yrsno datano data

1.8yrs

Average Tenure

Experienced Board: ATM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

ATM S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ATM S.A.
  • Ticker: ATM
  • Exchange: WSE
  • Founded: 1987
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: zł363.433m
  • Shares outstanding: 36.34m
  • Website: https://www.atm.com.pl

Location

  • ATM S.A.
  • Grochowska 21a
  • Warsaw
  • 04-186
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATMWSE (Warsaw Stock Exchange)YesCommon SharesPLPLNSep 2004
0LRGLSE (London Stock Exchange)YesCommon SharesGBPLNSep 2004

Biography

ATM S.A. provides telecommunications and value-added services in Poland and internationally. It operates through Data Center Services and Telecommunications Services segments. The company offers colocation services, such as renting space for hardware and ensuring uninterruptible power supply and network connection; and hosting services, including renting servers with Internet access based on its data center. It also provides data security center services consisting of renting backup front-office and back-office environments; Atman data center WAW-2; Internet access for telecommunications operators, Internet and application service providers, and business customers; and teletransmission services comprising broadband data transmission, as well as operates optical data transmission network. In addition, the company designs and set ups telecommunications and IT networks. It serves telecommunications, banking and finance, industry, commerce and services, media, and publishing sectors. The company was founded in 1987 and is based in Warsaw, Poland. ATM S.A. is a subsidiary of MCI.PrivateVentures FIZ. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:38
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.