Assystem (ASY) AI Stock Analysis

• Market Cap: €681.22M
• Dividend Yield: 2.41%
• Average Volume (3M): 6.37K
• Price to Earnings (P/E): 85.3
• Beta (1Y): 0.74
• Revenue Growth: 6.72%
• EPS Growth: -90.75%
• Country: FR
• Employees: 7,599
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.33
• Shares Outstanding: 15,668,216
• 10 Day Avg. Volume: 5,756
• 30 Day Avg. Volume: 6,374
• PEG Ratio: -0.92
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 23.47
• 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: 12.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €49.00 ▲(9.87% Upside)

Assystem's overall stock score is primarily influenced by its solid financial performance, which is offset by a high valuation and neutral technical indicators. The company's stable revenue growth and profit margins are positive, but the high P/E ratio suggests potential overvaluation. The lack of strong market momentum further tempers the stock's attractiveness.

Positive Factors

Cash Generation

Assystem's consistent operating cash flow and positive free cash flow provide durable internal funding for capex, working capital and potential distributions. Reliable cash conversion reduces dependence on external financing and supports multi-month project execution and bidding flexibility.

Revenue and Margin Trends

A history of steady revenue growth with generally stable gross and net margins signals sustained demand and effective cost management across project cycles. This trend supports backlog conversion and operating leverage over the medium term, despite isolated downward pressure in 2024.

Market Position / Domain Expertise

Deep, long-standing specialization in nuclear, transport and energy creates high barriers to entry, pricing power and long-term contracts with utilities and governments. This structural positioning should sustain project pipelines and client stickiness across several months to years.

Negative Factors

Balance Sheet Cushion

A declining stockholders' equity trend weakens the balance sheet buffer available for project overruns or large bid commitments. Over a multi-month horizon this can constrain strategic investments, increase sensitivity to shocks, and limit flexibility in financing large capital-intensive contracts.

Profitability Pressure in 2024

The 2024 drop in gross profit and net income indicates margin compression, possibly from cost inflation or tougher bidding. If persistent, this reduces reinvestment capacity, strains returns on projects and could impair resilience across subsequent contract cycles and capital planning.

Earnings Volatility

A roughly -90% EPS growth rate reflects significant earnings volatility and recent earnings compression. Such swings undermine forecasting reliability, can destabilize ROE and make operational planning and investor confidence more challenging over the medium term.

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 through a combination of project-based consulting fees, engineering services, and long-term contracts with clients in key sectors such as energy and transportation. The company typically works on large-scale projects that require specialized knowledge and capabilities, allowing it to charge premium rates for its services. Significant revenue streams include consulting and engineering services for nuclear power plants, infrastructure projects, and governmental contracts related to energy and safety regulations. Additionally, Assystem has formed strategic partnerships with major industry players and government bodies, which not only enhance its service offerings but also contribute to a steady flow of contracts and projects, further solidifying its financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	636.40M	611.30M	577.50M	493.50M	445.40M	438.80M
Gross Profit	96.50M	89.50M	176.30M	86.90M	75.70M	59.30M
EBITDA	30.90M	50.20M	145.50M	44.40M	42.10M	42.20M
Net Income	7.80M	8.30M	102.00M	48.90M	34.20M	-23.40M
Balance Sheet
Total Assets	675.00M	649.30M	826.30M	739.80M	724.90M	675.80M
Cash, Cash Equivalents and Short-Term Investments	26.00M	31.20M	36.40M	28.50M	25.70M	43.10M
Total Debt	146.10M	126.50M	121.50M	111.70M	125.00M	105.60M
Total Liabilities	391.10M	348.40M	343.70M	338.30M	366.40M	340.90M
Stockholders Equity	282.50M	298.90M	479.80M	399.40M	357.20M	334.80M
Cash Flow
Free Cash Flow	35.00M	29.90M	31.50M	28.70M	6.30M	67.60M
Operating Cash Flow	38.10M	33.30M	35.70M	32.70M	11.30M	76.10M
Investing Cash Flow	-14.60M	188.90M	-3.90M	8.30M	-26.60M	-11.20M
Financing Cash Flow	-71.50M	-233.60M	-22.40M	-39.40M	-4.80M	-51.30M

Assystem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.60
• 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 Positive. The current price of 44.6 is below the 20-day moving average (MA) of 46.05, above the 50-day MA of 43.79, and above the 200-day MA of 42.73, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ASY.

Assystem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FGR	76 Outperform	€12.10B	12.12	14.39%	3.87%	7.71%	-2.82%
DG	76 Outperform	€66.76B	14.22	16.66%	3.96%	3.21%	4.24%
EN	76 Outperform	€17.51B	16.55	8.45%	4.51%	0.88%	-2.06%
ATE	68 Neutral	€2.54B	16.77	6.98%	2.08%	-0.23%	-37.70%
SPIE	66 Neutral	€7.92B	38.50	10.66%	2.14%	10.87%	-10.35%
ASY	57 Neutral	€681.22M	85.27	2.67%	2.41%	6.72%	-90.75%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%