Atos SE (AEXAY) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: N/A
• Average Volume (3M): 45.00
• Price to Earnings (P/E): 0.7
• Beta (1Y): 0.74
• 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: 0
• 30 Day Avg. Volume: 45
• 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: 1.97
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 11.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $13.50 ▲(1.73% Upside)

The score is primarily held down by very weak financial performance (losses, leverage pressure, and negative operating/free cash flow). Technical indicators provide some near-term support, and valuation appears cheap on P/E, but the low multiple is tempered by the company’s distressed fundamentals.

Positive Factors

Recurring revenue and diversified services

A mix of recurring managed/cloud services and project work supports more predictable revenue streams and customer stickiness. That structural revenue composition can stabilize top-line volatility, improve contract renewal visibility and support long-term margin recovery if operational issues are addressed.

Strategic hyperscaler partnerships

Partnerships with Google Cloud and Microsoft Azure expand product capabilities, co-sell opportunities and technology access. These alliances strengthen competitive positioning for large digital transformation deals and create durable routes to market and service differentiation over the medium term.

Global scale and industry diversification

A large global workforce and presence across manufacturing, telecom, financial services and public sector support delivery scale, cross-selling and diversified client exposure. This breadth reduces single-market dependency and enables winning multi-geography, large enterprise transformation contracts.

Negative Factors

Declining revenue and negative profitability

Sustained revenue decline and persistent negative EBIT/EBITDA compress reinvestment capacity and weaken competitive position. Ongoing losses erode operating leverage, limit ability to fund strategic initiatives internally, and make margin recovery contingent on structural cost or revenue improvements.

Negative operating and free cash flow

Consistent negative operating and free cash flow implies the business cannot self-fund working capital or capex needs, increasing reliance on external financing. Over months this raises liquidity risk, constrains strategic flexibility and elevates refinancing and covenant pressures if not remedied.

High leverage and shrinking equity

Significant leverage with shrinking equity reduces solvency buffers and increases interest burden, limiting ability to invest or absorb shocks. High debt levels raise refinancing and covenant risks and could force asset sales or painful restructuring if operational recovery stalls.

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

Financial statements indicate severe weakness: declining revenue, negative profitability (EBIT/EBITDA and net losses), high leverage with shrinking equity, and negative operating/free cash flow implying ongoing cash burn and sustainability risk.

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: 13.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 13.27 is above the 20-day moving average (MA) of 13.11, above the 50-day MA of 11.83, and below the 200-day MA of 65.13, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 53.36 is Neutral, 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	$791.51M	13.48	27.08%	―	12.94%	356.32%
KD	64 Neutral	$5.26B	13.55	35.51%	―	-1.90%	―
DXC	62 Neutral	$2.51B	6.21	13.79%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	61 Neutral	$1.13B	-175.94	-0.83%	―	8.65%	-117.14%
CNXC	50 Neutral	$2.30B	-1.80	-37.82%	3.38%	3.40%	53.13%
AEXAY	49 Neutral	$1.28B	0.72	―	―	-14.15%	―