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ATN International Inc (ATNI)
NASDAQ:ATNI

ATN International (ATNI) AI Stock Analysis

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ATATN International
(NASDAQ:ATNI)
52Neutral
ATN International's overall stock score reflects mixed financial health with strong cash flow but profitability and leverage issues. Technical analysis signals bearish trends, while valuation concerns arise from negative earnings. The earnings call further highlights operational challenges, particularly in the US segment.

ATN International (ATNI) vs. S&P 500 (SPY)

ATN International Business Overview & Revenue Model

Company DescriptionATN International (ATNI) is a telecommunications and renewable energy company that provides wireless and wireline services, including mobile, broadband, and fixed-line services, primarily in underserved and rural markets. The company operates through its various subsidiaries across the United States, the Caribbean, and other international locations. ATNI is committed to delivering reliable communication services and has also expanded its operations to include renewable energy solutions.
How the Company Makes MoneyATN International makes money through multiple revenue streams primarily centered around its telecommunications services. The company generates revenue by providing wireless and wireline services, including mobile voice and data, broadband internet, and fixed-line telephone services. In addition to telecommunications, ATN earns income from its renewable energy segment by developing and operating solar power projects. Significant partnerships with local governments and businesses in the regions they serve also play a critical role in their earnings, facilitating access to new markets and customers. The company's strategic focus on underserved and rural areas allows it to capture market share where competition may be less intense, thus contributing to its overall revenue growth.

ATN International Financial Statement Overview

Summary
ATN International presents a mixed financial profile with strong gross margins and improved free cash flow. However, challenges remain in profitability due to negative net income and increased leverage.
Income Statement
60
Neutral
ATN International shows mixed results in its income statement. The TTM Gross Profit Margin stands at approximately 57.37%, which is strong, indicating efficient cost management. However, the company has reported negative Net Income for multiple periods, resulting in a negative Net Profit Margin and raising concerns about profitability. Revenue has decreased by 1.94% TTM compared to the previous year, suggesting a slight decline in growth. The negative EBIT Margin of -2.87% TTM reflects challenges in covering operating expenses.
Balance Sheet
55
Neutral
The balance sheet reflects a moderate level of risk and equity health. The Debt-to-Equity Ratio TTM increased to approximately 1.44, indicating higher leverage, which may pose financial risk if not managed well. The Return on Equity (ROE) is not calculable due to negative net income. The Equity Ratio has decreased to 28.01%, suggesting a reduced proportion of assets financed by equity, potentially lowering financial stability.
Cash Flow
65
Positive
Cash flow analysis reveals some positive trends for ATN International. The Free Cash Flow turned positive TTM, showing improvement in liquidity. The Operating Cash Flow to Net Income Ratio is not calculable due to negative net income, yet the Operating Cash Flow itself is strong at $123.28 million, indicating good cash generation capability. The Free Cash Flow to Net Income Ratio is also not calculable, but the shift to positive Free Cash Flow is a notable strength.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
747.49M762.22M725.75M602.71M455.44M438.72M
Gross Profit
428.87M277.88M397.09M317.33M259.71M248.13M
EBIT
-21.42M13.18M21.37M20.36M28.23M26.11M
EBITDA
146.49M169.41M160.51M97.43M93.75M100.21M
Net Income Common Stockholders
-37.32M-14.54M-7.58M-20.81M-708.00K1.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
69.52M49.52M54.66M79.60M103.92M161.70M
Total Assets
1.78B1.78B1.71B1.61B1.08B1.13B
Total Debt
679.80M655.02M566.02M474.46M136.28M154.00M
Net Debt
610.58M605.80M511.36M394.86M32.35M-7.29M
Total Liabilities
1.07B1.06B938.57M833.41M329.38M323.91M
Stockholders Equity
529.99M541.07M580.81M601.25M645.65M676.12M
Cash FlowFree Cash Flow
953.00K-51.66M-58.27M-25.59M-9.44M15.18M
Operating Cash Flow
123.28M111.63M102.91M80.55M86.28M87.90M
Investing Cash Flow
-108.99M-165.11M-167.25M-426.58M-70.20M-88.26M
Financing Cash Flow
29.39M55.92M43.36M321.73M-73.37M-29.91M

ATN International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.89
Price Trends
50DMA
16.57
Positive
100DMA
19.52
Positive
200DMA
22.36
Negative
Market Momentum
MACD
0.55
Negative
RSI
70.74
Negative
STOCH
87.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATNI, the sentiment is Positive. The current price of 19.89 is above the 20-day moving average (MA) of 17.66, above the 50-day MA of 16.57, and below the 200-day MA of 22.36, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 70.74 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATNI.

ATN International Risk Analysis

ATN International disclosed 23 risk factors in its most recent earnings report. ATN International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ATN International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
USUSM
65
Neutral
$5.48B-0.85%-3.48%-169.60%
TDTDS
65
Neutral
$3.73B-0.54%0.89%-3.80%83.27%
CTCTO
64
Neutral
$595.46M36.87-0.37%8.12%14.11%-667.02%
59
Neutral
$30.54B0.25-13.23%4.04%2.36%-49.53%
52
Neutral
$274.02M-5.13%5.29%-1.03%-204.03%
41
Neutral
$631.47M-4.05%0.86%14.16%-443.30%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATNI
ATN International
19.89
-11.79
-37.22%
CTO
CTO Realty Growth
19.28
3.56
22.65%
SHEN
Shenandoah Telecommunications Co
11.80
-6.36
-35.02%
USM
United States Cellular
65.09
29.66
83.71%
TDS
Telephone & Data Systems
35.40
19.91
128.53%

ATN International Earnings Call Summary

Earnings Call Date: Mar 4, 2025 | % Change Since: 17.14% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The call highlighted successful expansion in fiber infrastructure and international segment growth, supported by government funding. However, significant revenue decline in the US telecom segment and a substantial goodwill impairment charge posed challenges. The overall sentiment is mixed with notable progress in strategic areas but offset by financial downturns in key segments.
Highlights
Expansion of Fiber Infrastructure
Expanded fiber route miles by 32% and doubled broadband homes passed by high-speed services, increasing high-speed capable customers by 44%.
International Segment Growth
International segment adjusted EBITDA grew by 10% year-over-year, with business service revenue increasing by 6% and business mobility revenue increasing by 21%.
Increased Cash Flow from Operations
Cash flow from operations increased by 16% year-over-year, emphasizing financial resilience and capital efficiency.
Significant Government Funding
Secured more than $370 million in government grants to support fiber deployments, reinforcing ATN's role as a key provider of broadband infrastructure.
Lowlights
Decline in US Telecom Revenue
Fourth-quarter US telecom segment revenue declined by 18% year-over-year, impacted by the conclusion of the Emergency Connectivity Fund and lower legacy wholesale roaming revenues.
Overall Revenue Decline
Total company revenue for the fourth quarter was $680.5 million, down 9% compared to the same period in 2023, and full-year revenue decreased by 4% from 2023.
Goodwill Impairment Charge
A $35.3 million goodwill impairment charge contributed to a full-year net loss of $26.4 million.
Prepaid Subscriber Decline
International prepaid subscribers dropped off primarily due to competition, affecting the largest market in Guyana.
Company Guidance
During the ATN International, Inc. Q4 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic focuses. For 2024, ATN reported full-year revenue of $729 million and an adjusted EBITDA of $184 million, with a 16% year-over-year increase in cash flow from operations. The international segment grew by nearly 2% in revenue to $377.5 million, with adjusted EBITDA growing 10% year-over-year, and business mobility revenue increasing by 21%. In 2025, ATN aims to stabilize its US segment and continue expanding its international margins, expecting full-year revenue to be in line with 2024, excluding construction revenues, and adjusted EBITDA to remain flat. Capital expenditures are projected between $90 and $100 million, net of reimbursements, as the company leverages its substantial $370 million in government grants to support fiber deployments. The net debt ratio is expected to slightly improve from the 2024 level. ATN plans to focus on long-term growth through investments in fiber infrastructure and enterprise and carrier solutions, optimizing operations, and leveraging government grants to enhance free cash flow and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.