Atari SA (ALATA) AI Stock Analysis

• Market Cap: €65.03M
• Dividend Yield: N/A
• Average Volume (3M): 210.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 63.11%
• EPS Growth: 10.97%
• Country: FR
• Employees: 1
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 559,082,950
• 10 Day Avg. Volume: 279,517
• 30 Day Avg. Volume: 210,798
• PEG Ratio: 0.36
• Price to Book (P/B): -29.29
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -6.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 38 Underperform
• Price Target: €0.00 ▼(-100.00% Downside)

Atari SA's overall stock score is primarily impacted by its precarious financial health and bearish technical indicators. The company's strong revenue growth is overshadowed by significant profitability and financial stability concerns, including negative equity and cash flow challenges. The technical analysis further suggests a bearish trend, with the stock trading below key moving averages and indicators pointing to oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, contributing to the low overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective sales strategies, which can lead to increased market share and long-term business sustainability.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing financial resilience and providing multiple avenues for growth.

Positive Operating Cash Flow

Positive operating cash flow indicates the company's ability to generate cash from its core operations, supporting ongoing business activities and investment opportunities.

Negative Factors

Negative Equity

Negative equity suggests potential solvency issues, which can limit financial flexibility and increase the risk of financial distress.

Negative Free Cash Flow

Negative free cash flow indicates challenges in generating cash after capital expenditures, potentially hindering the company's ability to invest in growth opportunities without external funding.

Profitability Challenges

Ongoing profitability challenges can impact the company's ability to reinvest in its business, affecting long-term growth and competitive positioning.

Atari SA Business Overview & Revenue Model

Company Description

Atari SA (ALATA) is a global interactive entertainment company known for its rich heritage in video game development and publishing. Established in the early 1970s, Atari operates primarily in the gaming sector, focusing on the development of video games for various platforms, including consoles, PCs, and mobile devices. The company also explores opportunities in the emerging fields of blockchain gaming and NFTs, alongside its traditional offerings of classic game remakes and new titles. Its portfolio includes iconic franchises such as 'Pong,' 'Asteroids,' and 'RollerCoaster Tycoon,' as well as partnerships that extend its brand presence across multiple entertainment sectors.

How the Company Makes Money

Atari generates revenue through a diversified model that includes the sale of video games, licensing of its intellectual property, and partnerships with other companies in the gaming and entertainment industries. Key revenue streams consist of direct sales from both physical and digital game distributions, in-game purchases, and subscriptions for premium content. The company also benefits from licensing agreements that allow other developers to create games using its classic IP, generating royalties. Additionally, Atari is exploring new revenue opportunities in blockchain gaming and NFTs, aiming to capitalize on trends in digital collectibles and virtual assets, which could significantly enhance its financial performance.

Atari SA Financial Statement Overview

Summary

Atari SA is experiencing strong revenue growth, but profitability and financial stability are significant concerns. The company faces challenges with negative net income and high leverage, as indicated by negative equity. While operating cash flow is positive, free cash flow remains negative, suggesting difficulties in sustaining operations without external financing. Overall, the financial health of Atari SA is precarious, with potential risks due to its financial structure and cash flow issues.

Income Statement

Atari SA has shown a significant revenue growth rate of 20.43% in the latest year, indicating a positive trend in sales. However, the company struggles with profitability, as evidenced by a negative net profit margin of -37.5% and an EBIT margin of -21.13%. The gross profit margin is relatively strong at 73.51%, suggesting efficient production or service delivery, but the high operating expenses are eroding profits.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity, leading to an extremely high and negative debt-to-equity ratio of -28.27. This indicates potential solvency issues. Return on equity is positive at 6.60%, but this is due to the negative equity base rather than operational efficiency. The equity ratio is not calculable due to negative equity, highlighting financial instability.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow is positive at $8.8 million, which is a positive sign. However, free cash flow remains negative at -$8.1 million, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.40, suggesting some ability to convert income into cash, but the negative free cash flow to net income ratio of -0.92 highlights ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.60M	33.60M	20.60M	10.10M	14.90M	18.90M
Gross Profit	16.15M	24.70M	1.10M	2.50M	7.90M	800.00K
EBITDA	16.30M	11.10M	1.00M	-3.10M	-19.20M	900.00K
Net Income	-12.60M	-12.60M	-13.50M	-9.50M	-23.80M	-11.90M
Balance Sheet
Total Assets	77.10M	77.10M	78.10M	25.20M	26.00M	40.40M
Cash, Cash Equivalents and Short-Term Investments	3.50M	3.50M	2.60M	1.70M	600.00K	2.50M
Total Debt	54.00M	54.00M	46.10M	9.30M	6.80M	1.90M
Total Liabilities	79.01M	79.01M	71.30M	17.40M	21.60M	16.20M
Stockholders Equity	-1.91M	-1.91M	6.80M	7.80M	4.40M	24.20M
Cash Flow
Free Cash Flow	8.80M	-8.10M	-21.20M	-14.10M	-10.00M	-9.30M
Operating Cash Flow	8.80M	8.80M	-4.30M	-8.30M	-5.80M	-4.60M
Investing Cash Flow	-18.60M	-18.60M	-31.20M	-5.60M	-4.30M	-3.10M
Financing Cash Flow	11.70M	9.30M	36.80M	14.70M	7.50M	7.80M

Atari SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALATA, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 62.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALATA.

Atari SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPUL	62 Neutral	€141.42M	6.84	13.78%	5.52%	108.18%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GUI	52 Neutral	€71.69M	-14.76	-4.89%	―	-4.89%	-178.32%
NACON	45 Neutral	€54.79M	―	-0.36%	―	-4.48%	-105.25%
UBI	43 Neutral	€899.33M	-5.25	-4.52%	―	-11.78%	-28.61%
ALDNE	38 Underperform	€10.30M	-0.24	-77.09%	―	90.92%	24.05%
ALATA	38 Underperform	€65.03M	―	-514.29%	―	63.11%	10.97%