Assystem (ASY) AI Stock Analysis

• Market Cap: €685.65M
• Dividend Yield: 2.09%
• Average Volume (3M): 8.58K
• Price to Earnings (P/E): 85.3
• Beta (1Y): 0.67
• Revenue Growth: 5.85%
• EPS Growth: -91.81%
• Country: FR
• Employees: 7,599
• Sector: Industrials
• Sector Strength: 76
• Industry: Engineering & Construction
• EPS (TTM): 0.21
• Shares Outstanding: 15,668,216
• 10 Day Avg. Volume: 8,321
• 30 Day Avg. Volume: 8,581
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €50.00
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: €48.00 ▲(4.12% Upside)

Assystem's stock displays strong technical momentum, which is the most significant factor in its current evaluation. However, the high P/E ratio indicates potential overvaluation, offsetting some of the positive technical signals. The company's solid financial performance underpins the stock's stability, although there are concerns about cash flow sustainability and declining stockholder equity. These factors collectively contribute to a moderate overall stock score.

Positive Factors

Future Growth Prospects

Analyst expects organic growth of around +6% in Q4, with credible prospects of growth at the same rate in 2025.

Sales Growth

Assystem reported 3Q24 sales of €144m, up +3.4%, including approximately +10% growth in global Nuclear activities.

Negative Factors

Earnings Guidance

Assystem published a decelerating Q3 accompanied by a profit warning: the group lowered its FY24 adj. EBIT guidance by -9%.

Nuclear Segment Outlook

The Nuclear segment could experience a fairly marked slowdown over the next few quarters due to budgetary situations and challenging comparison bases.

Sector Challenges

The outsourced R&D sector seems to be challenged by the difficulties in the automotive sector, particularly in Germany, and by a marked slowdown in the aerospace sector.

Assystem Business Overview & Revenue Model

Company Description

Assystem S.A. provides engineering and infrastructure project management services worldwide. The company provides engineering services for the preparation, design, and construction of critical and complex infrastructure projects for public authorities and utility companies. It also offers engineering, procurement, and construction management; project management consulting; industrial control system; siting and permit studies; research and analysis; systems engineering; project management; digital engineering; project control solutions; digital field services; and industrial data science, as well as compliance, safety and security services for nuclear, energy, transportation, defense, and buildings and infrastructure sectors. In addition, the company provides decommissioning and waste management services, and integration and maintenance services. Assystem S.A. was formerly known as AssystemBrime S.A. and changed its name to Assystem S.A. in June 2005. The company. was founded in 1966 and is headquartered in Courbevoie, France. Assystem S.A. is a subsidiary of HDL Development.

How the Company Makes Money

Assystem generates revenue primarily through its engineering and consulting services, which account for the majority of its income. The company operates on a project-based revenue model, where it charges clients for specific projects, often on a time-and-materials or fixed-price basis. Key revenue streams include long-term contracts with major clients in the nuclear and aerospace sectors, where reliable and specialized engineering support is critical. Additionally, Assystem benefits from strategic partnerships and joint ventures that expand its capabilities and market reach, further enhancing its revenue potential. The company's focus on high-growth markets and its ability to adapt to changing industry demands also contribute to its earnings.

Assystem Financial Statement Overview

Summary

Assystem demonstrates solid financial performance with consistent revenue growth and stable profit margins. The company effectively manages its leverage and maintains a strong asset base. However, recent declines in stockholders' equity and uneven cash flow growth warrant attention. Overall, Assystem is financially stable but should focus on improving profit margins and cash flow sustainability to enhance its financial position.

Income Statement

Assystem has shown consistent revenue growth over the past years, with a notable increase from 2020 to 2024. The gross profit margin and net profit margin have remained stable, indicating efficient cost management. However, the decline in gross profit in 2024 suggests pressure on profit margins. The EBIT and EBITDA margins are healthy, supporting profitability, but the company faced a dip in net income in 2024, which impacted overall profitability.

Balance Sheet

The company maintains a stable equity ratio, demonstrating strong shareholder equity relative to its assets. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, a decrease in stockholders' equity over the years might pose a risk. Return on Equity (ROE) has fluctuated, reflecting variability in earnings generation. The balance sheet shows a robust asset base but highlights the need for careful management of liabilities.

Cash Flow

Assystem's operating cash flow is strong, consistently covering net income and capital expenditures. Free cash flow has been positive, indicating healthy cash generation capacity, although growth has slowed in recent years. The operating cash flow to net income ratio suggests efficient cash earnings conversion, but the free cash flow growth rate has been uneven, pointing to potential challenges in sustaining cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	611.30M	577.50M	493.50M	445.40M	438.80M
Gross Profit	89.50M	176.30M	86.90M	75.70M	59.30M
EBITDA	50.20M	145.50M	44.40M	42.10M	-2.30M
Net Income	8.30M	102.00M	48.90M	34.20M	-23.40M
Balance Sheet
Total Assets	649.30M	826.30M	739.80M	724.90M	675.80M
Cash, Cash Equivalents and Short-Term Investments	31.20M	36.40M	28.50M	25.70M	43.10M
Total Debt	116.50M	121.50M	111.70M	125.00M	105.60M
Total Liabilities	348.40M	343.70M	338.30M	366.40M	340.90M
Stockholders Equity	298.90M	479.80M	399.40M	357.20M	334.80M
Cash Flow
Free Cash Flow	29.90M	31.50M	28.70M	6.30M	67.60M
Operating Cash Flow	33.30M	35.70M	32.70M	11.30M	76.10M
Investing Cash Flow	188.90M	-3.90M	8.30M	-26.60M	-11.20M
Financing Cash Flow	-227.70M	-22.40M	-36.60M	-4.20M	-50.00M

Assystem Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ASY, the sentiment is Neutral. The current price of 46.1 is below the 20-day moving average (MA) of 47.94, above the 50-day MA of 44.71, and above the 200-day MA of 39.49, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ASY.

Assystem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASY	67 Neutral	€685.65M	85.26	2.13%	2.09%	5.85%	-91.81%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
0O1S	―	€2.31B	12.84	8.78%	1.40%	―	―
0HAN	―	€13.88B	13.38	8.75%	―	―	―
0NPT	―	€10.63B	10.78	15.80%	―	―	―
0R8M	―	€8.00B	41.53	10.66%	―	―	―
0NQM	―	€63.95B	14.44	16.66%	―	―	―