Atos SE (AEXAY) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: N/A
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 0.7
• Beta (1Y): 0.91
• Revenue Growth: -14.15%
• EPS Growth: N/A
• Country: US
• Employees: 71,279
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -8.16
• Shares Outstanding: 97,062,500
• 10 Day Avg. Volume: 135
• 30 Day Avg. Volume: 51
• 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 Cap: 2.17
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 11.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2
• Revenue Forecast (FY): $9.37B

• Rating: 46 Neutral
• Price Target: $10.00 ▼(-3.29% Downside)

Atos SE's overall stock score is primarily impacted by its poor financial performance, which poses significant risks. The technical analysis further indicates bearish momentum, while the valuation suggests potential undervaluation, albeit with caution due to financial distress. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Reserves

Having cash reserves provides Atos SE with a buffer to manage liquidity needs, allowing it to navigate financial challenges and invest in strategic initiatives.

Cybersecurity Services

Cybersecurity services are in high demand, providing Atos SE with a growth opportunity in a critical and expanding market sector.

Partnerships

Strong partnerships can lead to large-scale contracts and sustained revenue streams, enhancing Atos SE's market position and business stability.

Negative Factors

Revenue Decline

A declining revenue trend indicates potential loss of market share and challenges in maintaining competitive positioning, impacting long-term growth prospects.

Negative Cash Flow

Sustained negative cash flow suggests operational inefficiencies and may necessitate external financing, which could strain financial health.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting Atos SE's ability to invest in growth and weather economic downturns.

Atos SE Business Overview & Revenue Model

Company Description

Atos SE provides digital transformation solutions and services worldwide. It offers cloud, cybersecurity, and computing solutions, as well as end-to-end vertical solutions, data platforms, and infrastructure solutions. The company's solutions include advanced computing; analytics, artificial intelligence, and automation; cloud solutions; customer journey analytics and digital customer experience; advance detection and response, data protection and governance, and trusted digital identities, as well as digital workplace, hybrid cloud, and IoT and OT security; digital consulting; digital workplace; and edge computing and Internet of things. It also offers infrastructure and foundation services. It serves energy and utilities, financial services and insurance, healthcare and life sciences, manufacturing, public sector and defense, telecommunications and media, transport and logistics, and retail industries. Atos SE was incorporated in 1982 and is headquartered in Bezons, France.

How the Company Makes Money

Atos SE generates revenue primarily through its IT services, which include consulting, systems integration, managed services, and cloud services. The company operates on a project-based and recurring revenue model, where consulting and project implementation services yield one-time fees, while managed services and cloud offerings provide ongoing subscription-based income. Key revenue streams include application services, infrastructure services, and cybersecurity solutions. Significant partnerships with major technology providers, such as Google Cloud and Microsoft Azure, enhance Atos' service portfolio and expand its market reach. Additionally, the company's focus on digital transformation initiatives for clients in various industries contributes to a steady demand for its services, driving revenue growth.

Atos SE Financial Statement Overview

Summary

Atos SE is grappling with significant financial challenges. The company exhibits declining revenue, negative profitability, and increasing leverage, which together pose serious financial risks. While there are cash reserves, the negative cash flow trends highlight sustainability issues. Immediate strategic actions may be required to stabilize and improve the financial health of the company.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 10.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 10.34 is below the 20-day moving average (MA) of 10.70, below the 50-day MA of 11.41, and below the 200-day MA of 285.54, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 74.50 is Negative, neither overbought nor oversold. The STOCH value of 100.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTLP	74 Outperform	$782.66M	13.31	27.08%	―	12.94%	356.32%
CNXC	69 Neutral	$2.46B	8.35	7.08%	3.43%	3.40%	53.13%
KD	64 Neutral	$6.21B	15.86	35.51%	―	-1.90%	―
DXC	62 Neutral	$2.65B	7.49	12.33%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	61 Neutral	$1.41B	―	-0.83%	―	8.65%	-117.14%
AEXAY	46 Neutral	$1.15B	0.71	―	―	-14.15%	―