NYSE:ATTO

Stock Analysis Report

Executive Summary

Atento S.A., together with its subsidiaries, provides customer relationship management and business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.0%

ATTO

0.2%

US Commercial Services

1.1%

US Market


1 Year Return

-32.2%

ATTO

22.8%

US Commercial Services

17.8%

US Market

Return vs Industry: ATTO underperformed the US Commercial Services industry which returned 22.8% over the past year.

Return vs Market: ATTO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ATTOIndustryMarket
7 Day3.0%0.2%1.1%
30 Day-3.5%0.9%1.4%
90 Day-8.6%4.0%3.9%
1 Year-32.2%-32.2%27.1%22.8%20.3%17.8%
3 Year-59.2%-60.6%55.8%45.6%44.8%35.4%
5 Year-72.0%-72.9%103.8%82.9%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ATTO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ATTO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ATTO is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: ATTO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ATTO is good value based on its PB Ratio (0.9x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

How is Atento forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

102.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATTO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ATTO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ATTO's is expected to become profitable in the next 3 years.

Revenue vs Market: ATTO's revenue (4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ATTO's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATTO's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Atento performed over the past 5 years?

-30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATTO is currently unprofitable.

Growing Profit Margin: ATTO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATTO is unprofitable, and losses have increased over the past 5 years at a rate of -30.2% per year.

Accelerating Growth: Unable to compare ATTO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ATTO is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-3.1%).


Return on Equity

High ROE: ATTO has a negative Return on Equity (-15.6%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atento's financial position?


Financial Position Analysis

Short Term Liabilities: ATTO's short term assets ($549.1M) exceed its short term liabilities ($380.6M).

Long Term Liabilities: ATTO's short term assets ($549.1M) do not cover its long term liabilities ($685.0M).


Debt to Equity History and Analysis

Debt Level: ATTO's debt to equity ratio (226.3%) is considered high.

Reducing Debt: ATTO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: ATTO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATTO's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ATTO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ATTO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -35% per year.


Next Steps

Dividend

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

12.17%

Current Dividend Yield


Dividend Yield vs Market

company12.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: ATTO's dividend (12.17%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ATTO's dividend (12.17%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ATTO has been paying a dividend for less than 10 years.

Growing Dividend: ATTO has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: ATTO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ATTO is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Carlos López-Abadía (56yo)

0.9yrs

Tenure

0

Mr. Carlos López-Abadía is Chief Executive Officer and Director of Atento S.A. since January 28, 2019. Mr. López-Abadía serves as a Director at Atento Holding, Inversiones y Teleservicios, S.A., since Febr ...


Management Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: ATTO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

52yo

Average Age

Experienced Board: ATTO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Inaki Bueno (48yo)

    Chief People Officer

    • Tenure: 0yrs
  • Michael Flodin (55yo)

    US & Nearshore Regional Director

    • Tenure: 2.3yrs
  • Miguel Marañón (47yo)

    Managing Director for Mexico & the North Region

    • Tenure: 0yrs
  • Normand Barahona

    Managing Director - Peru

    • Tenure: 2.7yrs
  • Shay Chor

    Investor Relations Director & Corporate Treasurer

    • Tenure: 2.4yrs
  • Virginia Trapero (46yo)

    Chief Legal Officer & Secretary of the Board

    • Tenure: 2.8yrs
  • Óscar Velásquez

    Managing Director of Atento Colombia

    • Tenure: 1.2yrs
  • Carlos López-Abadía (56yo)

    CEO & Director

    • Tenure: 0.9yrs
  • José Antonio de Azevedo

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Gustavo Tasner

    Chief Operating Officer

    • Tenure: 0.08yrs

Board Members

  • Tom Iannotti (63yo)

    Lead Director

    • Tenure: 0.8yrs
  • Stuart Ashley Gent (47yo)

    Director

    • Tenure: 5.3yrs
  • Charles Megaw (48yo)

    Director

    • Tenure: 1.1yrs
  • David Danon (38yo)

    Director

    • Tenure: 1.1yrs
  • Dave Garner (61yo)

    Director

    • Tenure: 3.3yrs
  • Vishal Jugdeb (42yo)

    Chairperson

    • Tenure: 0.8yrs
  • Antonio Viana-Baptista (61yo)

    Independent Director

    • Tenure: 1.5yrs
  • Carlos López-Abadía (56yo)

    CEO & Director

    • Tenure: 0.9yrs

Company Information

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


Key Information

  • Name: Atento S.A.
  • Ticker: ATTO
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$197.758m
  • Shares outstanding: 71.14m
  • Website: https://www.atento.com

Number of Employees


Location

  • Atento S.A.
  • 4, Rue Lou Hemmer
  • Findel
  • 1748
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATTONYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2014

Biography

Atento S.A., together with its subsidiaries, provides customer relationship management and business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:44
End of Day Share Price2019/12/10 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.