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ATM

WSE:ATM
Snowflake Description

Second-rate dividend payer with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATM
WSE
PLN338M
Market Cap
  1. Home
  2. PL
  3. Telecom
Company description

ATM S.A. provides telecommunications and value-added services in Poland and internationally. The last earnings update was 61 days ago. More info.


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ATM Share Price and Events
7 Day Returns
1.1%
WSE:ATM
-2.3%
PL Telecom
-0%
PL Market
1 Year Returns
-1.7%
WSE:ATM
28.7%
PL Telecom
2.8%
PL Market
ATM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ATM (ATM) 1.1% 5.7% 11.2% -1.7% -9.2% -22.1%
PL Telecom -2.3% -10% 19.5% 28.7% 16.2% -33.5%
PL Market -0% 0.8% -2.5% 2.8% 14.5% -4.4%
1 Year Return vs Industry and Market
  • ATM underperformed the Telecom industry which returned 28.7% over the past year.
  • ATM underperformed the Market in Poland which returned 2.8% over the past year.
Price Volatility
ATM
Industry
5yr Volatility vs Market

ATM Value

 Is ATM undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ATM to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ATM.

WSE:ATM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year PL Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WSE:ATM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year PL Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 7.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.35 (1 + (1- 19%) (109.81%))
0.773
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.85% + (0.8 * 7.14%)
8.56%

Discounted Cash Flow Calculation for WSE:ATM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ATM is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WSE:ATM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (PLN, Millions) Source Present Value
Discounted (@ 8.56%)
2020 17.12 Est @ 21.23% 15.77
2021 19.81 Est @ 15.71% 16.81
2022 22.16 Est @ 11.85% 17.32
2023 24.18 Est @ 9.15% 17.41
2024 25.94 Est @ 7.26% 17.20
2025 27.48 Est @ 5.94% 16.79
2026 28.86 Est @ 5.01% 16.24
2027 30.12 Est @ 4.36% 15.61
2028 31.30 Est @ 3.91% 14.94
2029 32.42 Est @ 3.59% 14.26
Present value of next 10 years cash flows PLN162.34
WSE:ATM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= PLN32.42 × (1 + 2.85%) ÷ (8.56% – 2.85%)
PLN583.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= PLN583.74 ÷ (1 + 8.56%)10
PLN256.71
WSE:ATM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= PLN162.34 + PLN256.71
PLN419.05
Equity Value per Share
(PLN)
= Total value / Shares Outstanding
= PLN419.05 / 36.34
PLN11.53
WSE:ATM Discount to Share Price
Calculation Result
Value per share (PLN) From above. PLN11.53
Current discount Discount to share price of PLN9.30
= -1 x (PLN9.30 - PLN11.53) / PLN11.53
19.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ATM is available for.
Intrinsic value
19%
Share price is PLN9.3 vs Future cash flow value of PLN11.53
Current Discount Checks
For ATM to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ATM's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • ATM's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ATM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ATM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WSE:ATM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in PLN PLN0.07
WSE:ATM Share Price ** WSE (2019-07-19) in PLN PLN9.3
Poland Telecom Industry PE Ratio Median Figure of 13 Publicly-Listed Telecom Companies 30.01x
Poland Market PE Ratio Median Figure of 455 Publicly-Listed Companies 10.85x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ATM.

WSE:ATM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= WSE:ATM Share Price ÷ EPS (both in PLN)

= 9.3 ÷ 0.07

139.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ATM is overvalued based on earnings compared to the PL Telecom industry average.
  • ATM is overvalued based on earnings compared to the Poland market.
Price based on expected Growth
Does ATM's expected growth come at a high price?
Raw Data
WSE:ATM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 139.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
14.9%per year
Europe Telecom Industry PEG Ratio Median Figure of 35 Publicly-Listed Telecom Companies 1.92x
Poland Market PEG Ratio Median Figure of 105 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ATM, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ATM's assets?
Raw Data
WSE:ATM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in PLN PLN4.52
WSE:ATM Share Price * WSE (2019-07-19) in PLN PLN9.3
Poland Telecom Industry PB Ratio Median Figure of 13 Publicly-Listed Telecom Companies 0.79x
Poland Market PB Ratio Median Figure of 684 Publicly-Listed Companies 0.96x
WSE:ATM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= WSE:ATM Share Price ÷ Book Value per Share (both in PLN)

= 9.3 ÷ 4.52

2.06x

* Primary Listing of ATM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ATM is overvalued based on assets compared to the PL Telecom industry average.
X
Value checks
We assess ATM's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. ATM has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ATM Future Performance

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

  • No analysts cover ATM, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ATM expected to grow at an attractive rate?
  • ATM's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • ATM's earnings growth is expected to exceed the Poland market average.
  • Unable to compare ATM's revenue growth to the Poland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
WSE:ATM Future Growth Rates Data Sources
Data Point Source Value (per year)
WSE:ATM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 14.9%
Poland Telecom Industry Earnings Growth Rate Market Cap Weighted Average 27.4%
Europe Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Poland Market Earnings Growth Rate Market Cap Weighted Average 10.3%
Poland Market Revenue Growth Rate Market Cap Weighted Average 5.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WSE:ATM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in PLN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WSE:ATM Past Financials Data
Date (Data in PLN Millions) Revenue Cash Flow Net Income *
2019-03-31 139 46 2
2018-12-31 137 42 2
2018-09-30 135 41 1
2018-06-30 134 39 8
2018-03-31 133 41 12
2017-12-31 133 36 10
2017-09-30 133 37 -7
2017-06-30 132 38 -9
2017-03-31 133 34 -14
2016-12-31 132 34 -10
2016-09-30 132 40 7
2016-06-30 132 38 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ATM's earnings are expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if ATM is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WSE:ATM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from ATM Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:ATM Past Financials Data
Date (Data in PLN Millions) EPS *
2019-03-31 0.07
2018-12-31 0.06
2018-09-30 0.02
2018-06-30 0.22
2018-03-31 0.30
2017-12-31 0.27
2017-09-30 -0.20
2017-06-30 -0.27
2017-03-31 -0.40
2016-12-31 -0.27
2016-09-30 0.19
2016-06-30 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ATM will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ATM's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Poland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ATM has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ATM Past Performance

  How has ATM performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ATM's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ATM's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • ATM's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ATM's 1-year earnings growth is negative, it can't be compared to the PL Telecom industry average.
Earnings and Revenue History
ATM's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ATM Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:ATM Past Revenue, Cash Flow and Net Income Data
Date (Data in PLN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 138.83 2.41 76.65
2018-12-31 136.62 2.02 73.08
2018-09-30 135.07 0.92 70.49
2018-06-30 133.89 8.49 68.21
2018-03-31 133.28 11.55 65.49
2017-12-31 132.99 9.78 61.85
2017-09-30 132.88 -7.17 60.52
2017-06-30 132.42 -9.42 58.99
2017-03-31 132.51 -14.03 58.85
2016-12-31 132.05 -9.79 59.21
2016-09-30 131.72 7.20 51.26
2016-06-30 131.77 5.02 44.12
2016-03-31 131.47 6.04 37.23
2015-12-31 131.48 5.64 30.14
2015-09-30 134.86 3.00 28.49
2015-06-30 135.02 5.37 27.88
2015-03-31 143.55 6.83 26.92
2014-12-31 154.46 8.07 26.49
2014-03-31 172.38 17.92 26.39
2013-12-31 170.33 17.25 26.41
2013-09-30 172.95 16.37 29.10
2013-06-30 171.21 15.33 29.45
2013-03-31 165.44 12.89 25.94
2012-12-31 180.40 14.15 27.31
2012-09-30 209.62 9.02 30.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ATM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ATM used its assets more efficiently than the PL Telecom industry average last year based on Return on Assets.
  • ATM's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ATM's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ATM has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ATM Health

 How is ATM's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ATM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ATM's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ATM's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ATM's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ATM Company Filings, last reported 3 months ago.

WSE:ATM Past Debt and Equity Data
Date (Data in PLN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 164.23 219.17 11.25
2018-12-31 161.84 217.73 15.16
2018-09-30 157.03 214.94 8.67
2018-06-30 160.33 121.31 8.76
2018-03-31 248.62 122.00 7.82
2017-12-31 245.98 118.64 7.07
2017-09-30 239.76 126.11 3.75
2017-06-30 234.71 122.83 5.39
2017-03-31 231.20 131.99 2.30
2016-12-31 224.67 122.24 1.82
2016-09-30 238.90 125.25 1.82
2016-06-30 236.37 128.24 0.83
2016-03-31 235.12 137.00 1.19
2015-12-31 231.80 121.83 1.88
2015-09-30 231.02 124.69 1.94
2015-06-30 232.53 121.36 2.58
2015-03-31 237.98 114.73 1.02
2014-12-31 234.69 116.01 3.73
2014-03-31 238.56 72.05 2.21
2013-12-31 236.10 62.90 1.58
2013-09-30 236.40 64.98 1.16
2013-06-30 232.21 54.88 1.73
2013-03-31 233.04 55.06 2.60
2012-12-31 231.43 46.91 5.55
2012-09-30 233.06 49.90 5.18
  • ATM's level of debt (136.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.4% vs 136.3% today).
  • Debt is well covered by operating cash flow (20.5%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess ATM's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ATM has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ATM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
26.45%
Current annual income from ATM dividends.
If you bought PLN2,000 of ATM shares you are expected to receive PLN529 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ATM's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.78%).
  • ATM's dividend is above the markets top 25% of dividend payers in Poland (7.12%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WSE:ATM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Poland Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 23.6%
Poland Market Average Dividend Yield Market Cap Weighted Average of 203 Stocks 4.2%
Poland Minimum Threshold Dividend Yield 10th Percentile 1.5%
Poland Bottom 25% Dividend Yield 25th Percentile 2.8%
Poland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WSE:ATM Past Annualized Dividends Data
Date (Data in PLN) Dividend per share (annual) Avg. Yield (%)
2018-09-10 2.460 28.798
2018-04-27 2.460 27.751
2017-04-28 0.000 0.000
2016-11-10 0.000 0.000
2016-09-30 0.000 0.000
2016-03-21 0.000 0.000
2015-05-14 0.200 2.086
2015-03-20 0.200 1.925
2014-11-13 0.120 1.059
2014-08-28 0.120 1.042
2014-03-21 0.120 0.990
2013-05-02 0.100 0.827
2013-02-26 0.000 0.000
2011-04-29 0.230 3.020
2011-02-25 0.230 1.838
2010-04-30 0.160 1.660
2010-02-25 0.160 1.851
2009-04-30 0.160 2.271
2009-02-25 0.160 4.900
2008-11-07 0.540 14.181
2008-09-26 0.540 9.716

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ATM's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ATM's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ATM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ATM has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ATM Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Szczesniewski
TENURE AS CEO 0.3 years
CEO Bio

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 the company's takeover by the GTS group, he worked at GTS Energis, and subsequently in GTS Poland, where he was director of the product management department. He was responsible for sales and product strategy and creation and implementation of revenue budgets.

CEO Compensation
  • Insufficient data for Daniel to compare compensation growth.
  • Insufficient data for Daniel to establish whether their remuneration is reasonable compared to companies of similar size in Poland.
Management Team

Tomasz Galas

TITLE
Vice-President of the Management Board
TENURE
3 yrs

Daniel Szczesniewski

TITLE
President of the Management Board
TENURE
0.3 yrs

Kinga Bogucka

TITLE
Chief Accountant
Board of Directors Tenure

Average tenure of the ATM board of directors in years:

1.2
Average Tenure
  • The average tenure for the ATM board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mariusz Grendowicz

TITLE
Supervisory Board Chairman
TENURE
0.8 yrs

Piotr Sieluk

TITLE
Vice Chairman of Supervisory Board

Maciej Kowalski

TITLE
Member of the Supervisory Board
TENURE
3.3 yrs

Przemyslaw Glebocki

TITLE
Member of the Supervisory Board
TENURE
1.6 yrs

Tomasz Jacygrad

TITLE
Member of the Supervisory Board
TENURE
1.6 yrs

Tomasz Czechowicz

TITLE
Member of the Supervisory Board
TENURE
0.3 yrs

Sebastian Millinder

TITLE
Member of the Supervisory Board
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (PLN) Value (PLN)
X
Management checks
We assess ATM's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ATM has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ATM News

Simply Wall St News

What ATM SA's (WSE:ATM) ROE Can Tell Us

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every PLN1 worth of shareholders' equity, it generated PLN0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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How Has ATM SA's (WSE:ATM) Performed Against The Industry?

When ATM SA (WSE:ATM) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were ATM's average earnings over the past couple of years, and its industry performance. … ATM's trailing twelve-month earnings (from 31 March 2018) of zł20.50m has

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Should You Be Tempted To Sell ATM SA (WSE:ATM) Because Of Its PE Ratio?

and want to begin learning about how to value company based on its current earnings and what are the drawbacks of this method. … ATM SA (WSE:ATM) is currently trading at a trailing P/E of 18.7x, which is higher than the industry average of 10.9x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

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ATM SA (WSE:ATM): Time For A Financial Health Check

ATM SA (WSE:ATM) is a small-cap stock with a market capitalization of zł326.36m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

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What Should You Know About ATM SA.'s (WSE:ATM) Capital Returns?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Take a look at the formula box beneath: ROCE Calculation for ATM Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = ZŁ17.19M ÷ (ZŁ407.55M - ZŁ39.03M) = 4.67% The calculation above shows that ATM’s earnings were 4.67% of capital employed. … Over the same period, EBT went from ZŁ15.39M to ZŁ17.19M but capital employed rose by a proportionally greater amount as a result of a hike in the level of total assets and decrease in current liabilities (less borrowed money) , which suggests investor's ROCE has fallen because the company requires more capital to create earnings despite the previous growth in EBT.

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Should You Be Holding ATM SA. (WSE:ATM) Right Now?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … ATM’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … This outcome contradicts ATM’s current beta value which indicates a below-average volatility.

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What Does ATM SA.'s (WSE:ATM) Ownership Structure Look Like?

While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity. … Private Company Ownership Potential investors in ATM should also look at another important group of investors: private companies, with a stake of 56.72%, who are primarily invested because of strategic and capital gain interests. … Thus, investors should dig deeper into ATM's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

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Is ATM SA. (WSE:ATM) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ATM Price per share = PLN9.68 Earnings per share = PLN0.062 ∴ Price-Earnings Ratio = PLN9.68 ÷ PLN0.062 = 155x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since ATM's P/E of 155x is higher than its industry peers (11.8x), it means that investors are paying more than they should for each dollar of ATM's earnings. … For example, if you are inadvertently comparing riskier firms with ATM, then ATM’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

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Why ATM SA. (WSE:ATM) Delivered An Inferior ROE Compared To The Industry

See our latest analysis for ATM Breaking down Return on Equity Return on Equity (ROE) is a measure of ATM’s profit relative to its shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity WSE:ATM Last Perf Apr 14th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

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What does ATM SA.'s (WSE:ATM) Balance Sheet Tell Us About Its Future?

Additionally, ATM has produced ZŁ33.90M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 25.65%, signalling that ATM’s debt is appropriately covered by operating cash. … With current liabilities at ZŁ52.88M, the company is not able to meet these obligations given the level of current assets of ZŁ18.47M, with a current ratio of 0.35x below the prudent level of 3x. … In ATM's, case, the ratio of 3.35x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as ATM’s high interest coverage is seen as responsible and safe practice.Next Steps: Although ATM’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised.

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ATM Company Info

Description

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.

Details
Name: ATM S.A.
ATM
Exchange: WSE
Founded: 1987
PLN337,993,099
36,343,344
Website: http://www.atm.com.pl
Address: ATM S.A.
Grochowska 21a,
Warsaw,
04-186,
Poland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
WSE ATM Common Shares Warsaw Stock Exchange PL PLN 28. Sep 2004
Number of employees
Current staff
Staff numbers
0
ATM employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 20:36
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.