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Atos SE (AEXAY)
OTHER OTC:AEXAY
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Atos SE
(OTC:AEXAY)
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Rating:43Neutral
Price Target:
$9.50
▼(-33.29% Downside)
Atos SE's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue and negative cash flows. The technical analysis further indicates weak market momentum, while the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits additional insights.
Atos SE (AEXAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend YieldN/A
Average Volume (3M)20.00
Price to Earnings (P/E)0.8
Beta (1Y)0.70
Revenue Growth-14.15%
EPS GrowthN/A
CountryUS
Employees71,279
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-8.16
Shares Outstanding96,892,570
10 Day Avg. Volume0
30 Day Avg. Volume20
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.68
Price to Sales (P/S)0.06
P/FCF Ratio-0.29
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit0.61
Enterprise Value/Ebitda11.79
Forecast
1Y Price Target
$9.50Price Target Upside-33.29% Downside
Rating ConsensusHold
Number of Analyst Covering0
Atos SE Business Overview & Revenue Model
Company DescriptionAtos SE is a multinational information technology services and consulting company headquartered in France. It operates in various sectors including cloud services, digital transformation, cybersecurity, and high-performance computing. Atos provides a wide range of solutions, from IT infrastructure management to application services, and specializes in sectors such as healthcare, financial services, manufacturing, and public sector.
How the Company Makes MoneyAtos generates revenue through several key streams including IT services, consulting, and systems integration. The company earns money primarily from long-term contracts with clients, offering managed services, cloud solutions, and IT infrastructure management. Additionally, Atos derives income from its cybersecurity services and digital transformation projects. Significant partnerships with technology leaders and government agencies also contribute to its earnings, as these collaborations often lead to large-scale contracts and ongoing projects.
Atos SE Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q4-2024)
| Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for the company with significant revenue and cash flow declines. However, the completion of financial restructuring and positive Q4 commercial performance offer some optimism for future recovery.Q4-2024 Updates
Positive Updates
Strong Commercial Activity in Q4 2024
Q4 book-to-bill ratio was above 110%, stronger than Q4 2023, with €2.7 billion in contracts signed, including multiyear renewals and new wins.
Completion of Financial Restructuring
Financial restructuring was completed on December 18, leading to improved liquidity and a credit rating of B- with a stable outlook.
Positive Client Retention
Attrition rate was around 15%, with key employee retention at 92%, indicating stable workforce conditions.
Negative Updates
Revenue Decline
2024 revenue was €9.6 billion, down 5.4% organically, with Eviden down 6.7% and Tech Foundations declining by 4.1%.
Negative Free Cash Flow
The group reported a negative free cash flow of minus €2.2 billion, due to the end of one-off working capital optimization actions and higher CapEx linked to HPC contracts.
Operating Margin Decline
Group operating margin was €199 million, down 210 basis points compared to '23, impacted by additional SG&A costs and provisions for underperforming contracts.
North America Revenue Challenges
Revenue in North America declined by 12%, attributed to financial instability concerns, resulting in contract losses.
Company Guidance
During the call, the company provided several key metrics and updates on its financial performance and strategic direction. For fiscal year 2024, the group reported a revenue of €9.6 billion, reflecting a 5.4% organic decline compared to the previous year. The operating margin was €199 million, or 2.1% of revenue, marking a 210 basis point drop from 2023. Free cash flow for the year was negative €2.2 billion, largely due to the cessation of working capital optimization actions, which impacted cash flow by €1.5 billion. The net debt post-restructuring was €1.2 billion, with a book value of €0.3 billion after IFRS 9 adjustments. The company noted a strong Q4 book-to-bill ratio of over 110%, driven by multiyear contract renewals and new wins. The strategic transformation plan is underway, and a detailed strategy for 2025-2028 will be presented at the Capital Markets Day in May. Additionally, the group highlighted a significant contract activity rebound in Q4, resulting in €2.7 billion in order entries, and emphasized a focus on cash flow and profitability improvements moving forward.Atos SE Financial Statement Overview
Summary
Atos SE is facing significant financial challenges, with declining revenue, negative profitability, and increasing leverage. The company has a high debt-to-equity ratio and negative cash flows, indicating financial instability and sustainability issues.Income Statement
Atos SE has faced significant challenges in recent years, evidenced by a decline in revenue and profitability. The company reported negative EBIT and EBITDA margins, indicative of operational inefficiencies. Although the gross profit margin remains positive, the net profit margin is concerning due to consistent net losses. Revenue has decreased over the years, reflecting a contraction in business operations.25
Negative
Balance Sheet
The balance sheet of Atos SE shows a high debt-to-equity ratio, suggesting significant leverage and potential financial risk. Despite having positive stockholders' equity, it has diminished over the years. The equity ratio indicates limited equity financing, highlighting potential instability. Positive aspects include cash reserves that could provide liquidity support.30
Negative
Cash Flow
Atos SE's cash flow position is troubling, with negative operating and free cash flows, indicating cash burn and insufficient cash generation from core operations. The negative free cash flow growth rate further exacerbates concerns. This pattern suggests challenges in sustaining operations without external financing.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.63B | 9.58B | 10.69B | 11.27B | 10.84B | 11.18B |
| Gross Profit | 4.10B | 3.22B | 3.49B | 3.40B | 3.51B | 4.10B |
| EBITDA | 211.00M | 1.41B | -2.32B | 238.00M | -343.00M | 1.49B |
| Net Income | 1.49B | 248.00M | -3.44B | -1.02B | -2.96B | 550.00M |
Balance Sheet | ||||||
| Total Assets | 7.18B | 8.25B | 11.29B | 16.39B | 16.82B | 18.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.74B | 2.31B | 3.35B | 3.39B | 3.29B |
| Total Debt | 2.81B | 2.81B | 5.48B | 5.88B | 5.85B | 5.09B |
| Total Liabilities | 7.27B | 7.45B | 11.23B | 12.59B | 12.38B | 11.26B |
| Stockholders Equity | -91.00M | 799.00M | 55.00M | 3.79B | 4.44B | 6.86B |
Cash Flow | ||||||
| Free Cash Flow | -222.00M | -1.85B | -618.00M | 176.00M | 107.00M | 899.00M |
| Operating Cash Flow | 37.00M | -1.40B | -413.00M | 427.00M | 379.00M | 1.22B |
| Investing Cash Flow | -11.00M | -203.00M | 213.00M | -251.00M | -656.00M | 619.00M |
| Financing Cash Flow | 657.00M | 1.02B | -622.00M | -304.00M | 300.00M | -868.00M |
Atos SE Technical Analysis
Neutral
14.24
Price Trends
9.40
Positive
8.55
Positive
627.81
Negative
Market Momentum
0.82
Negative
73.38
Negative
100.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEXAY, the sentiment is Neutral. The current price of 14.24 is above the 20-day moving average (MA) of 11.49, above the 50-day MA of 9.40, and below the 200-day MA of 627.81, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 73.38 is Negative, neither overbought nor oversold. The STOCH value of 100.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEXAY.
Atos SE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $777.71M | 12.36 | 25.43% | ― | 12.64% | 457.40% | |
68 Neutral | $3.02B | 10.19 | 5.72% | 2.78% | 3.40% | 53.14% | |
65 Neutral | $2.43B | 6.62 | 12.05% | ― | -4.93% | 497.03% | |
63 Neutral | $1.46B | 517.65 | 0.35% | ― | 7.40% | -90.72% | |
61 Neutral | $7.05B | 24.94 | 23.99% | ― | -3.44% | ― | |
43 Neutral | $1.38B | 0.78 | 61.18% | ― | -14.15% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
AEXAY
Atos SE
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-99.03%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.