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ATN International Inc (ATNI)
NASDAQ:ATNI

ATN International (ATNI) AI Stock Analysis

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ATN International

(NASDAQ:ATNI)

Rating:52Neutral
Price Target:
ATN International's overall score reflects profitability challenges and technical indicators pointing to a bearish trend. While strategic expansions and cash flow improvements offer potential, negative earnings and valuation metrics weigh heavily. The high dividend yield provides some value attraction, but sustainability concerns remain.

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

ATN International Business Overview & Revenue Model

Company DescriptionATN International, Inc., through its subsidiaries, provides telecommunications services. It operates in three segments: International Telecom, US Telecom, and Renewable Energy. The International Telecom segment provides fixed data and voice; fixed, carrier, managed, and mobility services to customers in Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands, as well as video services in Bermuda, the Cayman Islands, and the US Virgin Islands. This segment also offers mobile, data, and voice services to retail and business customers in Bermuda, Guyana, and US Virgin Islands under the One, GTT+, and Viya brands; roaming services; and handsets and accessories. The US Telecom segment provides carrier services, such as wholesale roaming services; fixed, mobility, carrier, and managed services to business and consumer; private network services to enterprise and consumer customers; and site maintenance services and international long-distance services, as well as leases critical network infrastructure, including towers and transport facilities. The Renewable Energy segment provides distributed generation solar power to commercial and industrial customers in India. As of December 31, 2021, it operated seven retail stores in the US Telecom segment and twenty-one retail stores in the International Telecom segment. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was incorporated in 1987 and is headquartered in Beverly, Massachusetts.
How the Company Makes MoneyATN International generates revenue through multiple streams, primarily centered around its telecommunications and renewable energy operations. In the telecommunications sector, the company earns money by providing wireless and wireline communication services to consumers, businesses, and government entities. This includes revenue from mobile and fixed-line broadband subscriptions, voice and data service charges, and related telecommunications services. In the renewable energy sector, ATNI generates income by developing, operating, and managing solar power projects, selling generated power to utility companies, and leveraging government incentives related to renewable energy initiatives. The company's strategic partnerships with local and international entities further enhance its revenue potential by expanding market reach and service offerings.

ATN International Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -7.97%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in cash flow improvement and international segment performance, offset by challenges such as revenue decline and domestic segment struggles. The company's strategic focus on expanding broadband services and government-funded projects shows promise for future growth.
Q1-2025 Updates
Positive Updates
Cash Flow and Operational Efficiency Improvements
Cash from operations increased by 55% to $35.9 million, reflecting disciplined cost controls and capital allocation.
International Segment Performance
International segment adjusted EBITDA increased by 11% year-over-year, driven by improved operating efficiency and steady demand for high-speed broadband and business services.
Expansion in Broadband Services
The number of broadband homes passed by high-speed data services expanded by 11% year-on-year to 427,000 households.
Progress on Government-Funded Projects
Advancing approximately $370 million in government-funded broadband infrastructure projects, with over half expected to be completed in 2025.
Negative Updates
Revenue Decline
Total company revenue for the quarter was $179.3 million, down 4% year-over-year, largely due to the wind down of COVID-era government subsidy programs.
Domestic Segment Challenges
Domestic revenue was down 9.5% year-over-year, with adjusted EBITDA decreasing by 15.4% due to the conclusion of the Emergency Connectivity Fund and Affordable Care Program.
Net Loss for the Quarter
Net loss for the first quarter was $8.9 million or $0.69 per share, compared to the prior year's net loss of $6.3 million and $0.50 per share.
Company Guidance
During the ATN International Q1 2025 earnings call, the company reaffirmed its 2025 outlook despite challenges, highlighting a 2% growth in adjusted EBITDA and a 55% increase in cash from operations to $35.9 million. The strategic expansion included increasing broadband homes passed by 11% to 427,000 and growing the high-speed subscriber base by 2%. International operations showed an 11% rise in adjusted EBITDA, driven by improved efficiency and steady demand for broadband and business services. A key focus area is executing $370 million in government-funded broadband projects, with over half expected to complete in 2025. The company remains committed to leveraging its fiber infrastructure to boost value and is closely monitoring trade policies that might impact operational costs. Despite a 4% decline in total revenue to $179.3 million, attributed to the wind-down of U.S. government subsidies, ATN maintains a robust financial position with $97.3 million in cash and a net debt ratio of 2.52x. ATN anticipates a larger share of its annual results to materialize in the second half of 2025 and emphasizes continued margin improvement and strategic investment to drive long-term shareholder value.

ATN International Financial Statement Overview

Summary
ATN International faces profitability challenges with negative EBIT and net income despite strong gross margins. The income statement shows declining revenues and negative net margins. The balance sheet reflects moderate stability with low leverage but negative return on equity. Cash flow analysis indicates positive trends with improved free cash flow albeit negative core profitability.
Income Statement
55
Neutral
ATN International's income statement reveals a challenging profitability scenario. The company reported a negative EBIT and net income in TTM (Trailing-Twelve-Months), with a decline in total revenue compared to the previous year. Gross profit margin remains strong at 72.77% for TTM, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing losses. Revenue decline and negative EBIT margin highlight profitability concerns despite solid gross margins.
Balance Sheet
65
Positive
The balance sheet demonstrates moderate financial stability. The debt-to-equity ratio is low at 0.16 in TTM, indicating conservative leverage. However, the return on equity is negative due to net losses. The equity ratio of 27.72% suggests a balanced capital structure. While low debt levels are positive, persistent net losses weigh on overall financial health.
Cash Flow
70
Positive
Cash flow analysis suggests positive operational cash flow trends. The operating cash flow to net income ratio is strong at -4.46 in TTM, indicating efficient cash generation relative to losses. Free cash flow has improved significantly, showcasing effective capital spending control. However, the free cash flow to net income ratio remains negative, reflecting core profitability challenges.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
721.57M729.08M762.22M725.75M602.71M455.44M
Gross Profit
562.67M412.95M432.15M248.93M317.33M259.71M
EBIT
-18.63M-795.00K26.24M16.71M-15.03M9.18M
EBITDA
127.34M151.42M169.41M160.51M97.43M93.75M
Net Income Common Stockholders
-29.05M-26.43M-14.54M-5.64M-22.11M-14.12M
Balance SheetCash, Cash Equivalents and Short-Term Investments
83.85M73.69M49.52M54.96M79.90M103.92M
Total Assets
1.71B1.73B1.78B1.71B1.61B1.08B
Total Debt
695.69M695.25M655.02M566.02M474.46M136.28M
Net Debt
612.24M621.85M605.80M511.36M394.86M32.35M
Total Liabilities
1.05B1.06B1.06B938.57M833.41M329.38M
Stockholders Equity
473.33M489.49M541.07M580.81M601.25M645.65M
Cash FlowFree Cash Flow
46.03M16.97M-51.66M-58.27M-25.59M5.53M
Operating Cash Flow
140.65M127.92M111.63M102.91M80.55M86.28M
Investing Cash Flow
-93.20M-103.75M-165.11M-167.25M-426.58M-70.20M
Financing Cash Flow
-19.40M2.91M55.92M43.36M321.73M-73.37M

ATN International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price16.28
Price Trends
50DMA
16.35
Negative
100DMA
17.25
Negative
200DMA
20.33
Negative
Market Momentum
MACD
-0.05
Negative
RSI
58.71
Neutral
STOCH
92.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATNI, the sentiment is Neutral. The current price of 16.28 is above the 20-day moving average (MA) of 14.92, below the 50-day MA of 16.35, and below the 200-day MA of 20.33, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 92.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATNI.

ATN International Risk Analysis

ATN International disclosed 21 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$356.87M-5.81%7.01%-84.41%
66
Neutral
$459.83M41.65-1.03%-43.13%-107.18%
65
Neutral
$339.32M-5.17%9.62%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
59
Neutral
$301.92M-11.66%0.77%87.59%
52
Neutral
$246.05M-5.79%5.94%-5.46%-76.33%
49
Neutral
$198.58M-6.76%-24.10%-953.50%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATNI
ATN International
16.28
-4.06
-19.96%
PERI
Perion Network
9.91
1.48
17.56%
SIFY
Sify Technologies
4.57
1.99
77.13%
OOMA
Ooma
12.73
4.01
45.99%
TRVG
trivago
4.22
2.01
90.95%
DOYU
DouYu International Holdings
6.61
4.69
244.27%
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.