OTCPK:ATAZ.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record established 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: ATAZ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ATAZ.F

-12.1%

US IT

-10.6%

US Market


1 Year Return

n/a

ATAZ.F

16.7%

US IT

5.2%

US Market

Return vs Industry: Insufficient data to determine how ATAZ.F performed against the US IT industry.

Return vs Market: Insufficient data to determine how ATAZ.F performed against the US Market.


Shareholder returns

ATAZ.FIndustryMarket
7 Day0%-12.1%-10.6%
30 Day0%-9.0%-8.5%
90 Day4.5%-2.0%-4.6%
1 Yearn/a17.9%16.7%7.4%5.2%
3 Year37.1%37.1%82.2%74.4%31.7%23.2%
5 Year35.8%35.8%119.6%100.4%56.4%39.3%

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

No news available

Valuation

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

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATAZ.F ($14.6) is trading below our estimate of fair value ($17.33)

Significantly Below Fair Value: ATAZ.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ATAZ.F is good value based on its PE Ratio (22.1x) compared to the IT industry average (30x).

PE vs Market: ATAZ.F is poor value based on its PE Ratio (22.1x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ATAZ.F is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ATAZ.F is good value based on its PB Ratio (3.8x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

How is Atea forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATAZ.F's forecast earnings growth (21.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ATAZ.F's earnings (21.1% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATAZ.F's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ATAZ.F's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATAZ.F's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has Atea performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATAZ.F has high quality earnings.

Growing Profit Margin: ATAZ.F's current net profit margins (1.4%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: ATAZ.F's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: ATAZ.F's earnings growth over the past year (13.5%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: ATAZ.F earnings growth over the past year (13.5%) exceeded the IT industry 12%.


Return on Equity

High ROE: ATAZ.F's Return on Equity (17.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atea's financial position?


Financial Position Analysis

Short Term Liabilities: ATAZ.F's short term assets (NOK8.8B) do not cover its short term liabilities (NOK10.3B).

Long Term Liabilities: ATAZ.F's short term assets (NOK8.8B) exceed its long term liabilities (NOK1.5B).


Debt to Equity History and Analysis

Debt Level: ATAZ.F's debt to equity ratio (36.2%) is considered satisfactory.

Reducing Debt: ATAZ.F's debt to equity ratio has increased from 32.1% to 36.2% over the past 5 years.

Debt Coverage: ATAZ.F's debt is well covered by operating cash flow (170.6%).

Interest Coverage: ATAZ.F's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATAZ.F's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

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

6.17%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%1.6%markettop25%4.1%industryaverage1.4%forecastin3Years6.9%

Current dividend yield vs market & industry

Notable Dividend: ATAZ.F's dividend (6.07%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: ATAZ.F's dividend (6.07%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

Stable Dividend: ATAZ.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134.1%), ATAZ.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATAZ.F's dividends in 3 years are forecast to be covered by earnings (84.8% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Steinar Sonsteby (57yo)

6.1yrs

Tenure

kr7,231,500

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 ($USD771.48K) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Steinar's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steinar Sonsteby
Chief Executive Officer6.1yrskr7.23m0.0018% NOK22.5k
Robert Giori
Chief Financial Officer5.5yrskr3.53m0.013% NOK160.8k
Lorna Stangeland
Senior Vice President of Supply Chain Management3.1yrskr4.49mno data
August Johan Baumann
Senior Vice President2.8yrskr3.35m0.0020% NOK24.7k
Juha Sihvonen
Managing Director of Atea Finland OY (Finland)11.8yrskr796.93kno data
Arunas Bartusevicius
Managing Director of Atea Baltic UAB (the Baltics)0yrskr315.00k0.091% NOK1.1m
Carl-Johan Hultenheim
Managing Director of Atea Sverige AB (Sweden)9.1yrskr12.55m0.013% NOK157.1k
Michael Jacobs
Managing Director of Atea AS (Norway)3.9yrskr10.17mno data
Ole Fjellestad
Group Chief Accountant0yrsno data0.0050% NOK61.7k
Kathrine Forsberg
Managing Director of Atea Denmark0.08yrsno datano data

4.7yrs

Average Tenure

52yo

Average Age

Experienced Management: ATAZ.F's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Morten Jurs
Director9.8yrsno data0.00091% NOK11.2k
Svein-Tore Andersen
Alternate Director0yrsno datano data
Ib Kunøe
Chairman of the Board0yrsno data25% NOK308.5m
Truls Berntsen
Director5.8yrsno datano data
Sven Madsen
Director11.8yrsno datano data
Marthe Dyrud
Director0yrsno data0.0059% NOK72.9k
Marianne Urdahl
Director3.4yrsno data0.00070% NOK8.6k
Lisbeth Kvan
Director6.8yrsno datano data
Saloume Djoudat
Director4.8yrsno data0.0011% NOK13.4k
Arild Birkelund
Deputy Board Member1.8yrsno datano data

5.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ATAZ.F's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATAZ.F 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: ATAZ.F
  • Exchange: OTCPK
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr11.591b
  • Listing Market Cap: kr1.234b
  • Shares outstanding: 109.97m
  • Website: https://www.atea.com

Number of Employees


Location

  • Atea ASA
  • Brynsalléen 2
  • Oslo
  • Oslo
  • 667
  • 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 storing and managing information, as well as tools for virtualization, automation, and security for operating the data center environment; client hardware, software, and services to the requirements of users, applications, security, networks, and computing environments. It also offers hardware and software solutions for running networks, and services to help customers manage their communications; and a range of products to enable collaboration through conferencing, information sharing, and digital productivity solutions. In addition, it provides Device as a Service to various concepts, such as videoconferencing, digital signage, and networks. The company was founded in 1968 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:08
End of Day Share Price2019/12/10 00:00
Earnings2019/12/31
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.