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.
The last earnings update was 4 days ago.
Discounted Cash Flow Calculation for NYSE:ATTO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
NYSE:ATTO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Atento's share price is below the future cash flow value, and at a moderate discount (> 20%).
Atento's share price is below the future cash flow value, and 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
is considered below, and whether this is a fair price.
Price based on past earnings
Atento's earnings available for a low price, and how does
this compare to other companies in the same industry?
Atento's earnings are expected to grow significantly at over 20% yearly.
Atento's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
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.
Atento's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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.
TENURE AS CEO
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 February 2019 and CEO since 2019. Mr. López-Abadía was Vice President and General Manager Consulting of DXC Technology. Mr. López-Abadía served as Vice President Global Services for Misys where he led the transformation of the services and software support business and managed a global service delivery network based in major global financial centers and offshore locations. Prior experience also includes, Managing Partner at Accenture and leadership positions at Level 3, McKinsey&Co and AT&T. Mr. López-Abadía holds an MS in electrical engineering from Purdue University and an MBA from Washington University, where he was a Charles F. Knight Scholar.
Insufficient data for Carlos to compare compensation growth.
Insufficient data for Carlos to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Atento management team is less than 2 years, this suggests a new team.
CEO & Director
Chief Financial Officer
Chief Legal Officer & Secretary of the Board
Chief People Officer
Chief Commercial Officer
Managing Director for Mexico & the North Region
Managing Director - Peru
Managing Director of Atento Colombia
Investor Relations Director & Corporate Treasurer
US & Nearshore Regional Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Atento board of directors is less than 3 years, this suggests a new board.
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
In that relatively short period, the share price has plunged 60%. … To make matters worse, the returns over three years have also been really disappointing (the share price is 52% lower than three years ago). … The falls have accelerated recently, with the share price down 27% in the last three months.
Atento SA (NYSE:ATTO): Time For A Financial Health Check
Atento SA (NYSE:ATTO) is a small-cap stock with a market capitalization of US$437m. … 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.
Atento SA (NYSE:ATTO): Why Return On Capital Employed Is Important
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Atento is able to use capital to create earnings will help us understand your potential return.
Estimating The Intrinsic Value Of Atento SA (NYSE:ATTO)
Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Atento SA (NYSE:ATTO) as an investment opportunity. … by estimating the company's future cash flows and discounting them to their present value. … If you are reading this and its not August 2018 then I highly recommend you check out the latest calculation for Atento by following the link below
Are Atento SA's (NYSE:ATTO) Interest Costs Too High?
While small-cap stocks, such as Atento SA (NYSE:ATTO) with its market cap of US$524.75m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
What Should Investors Know About Atento SA's (NYSE:ATTO) Return On Capital?
and want a simplistic look at the return on Atento SA (NYSE:ATTO) stock. … Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders … Your return is tied to ATTO’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment.
Should Atento SA (NYSE:ATTO) Be Part Of Your Dividend Portfolio?
Atento SA (NYSE:ATTO) has returned an average dividend yield of 4.00% annually to shareholders. … 5 questions I ask before picking a dividend stock … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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. It offers a range of front and back-end services, including sales, customer care, collections, back office, applications-processing, credit-management, and technical support services. The company serves clients primarily in the telecommunications and financial services sectors; and in multi-sectors, including consumer goods, retail, public administration, healthcare, travel, and transportation and logistics, as well as technology and media. It provides its services and solutions through digital channels, which include SMS, email, chats, social media and apps, and others, as well as through voice and in-person. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Findel, Luxembourg.
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