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ALTEN SA (FR:ATE)
:ATE

ALTEN SA (ATE) AI Stock Analysis

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ALTEN SA

(LSE:ATE)

Rating:73Outperform
Price Target:
€82.00
▲(9.48%Upside)
ALTEN SA's strong financial performance is the most significant factor, supported by robust cash flow and a stable balance sheet. However, technical analysis indicates short-term bearish trends, and valuation metrics suggest the stock is fairly priced with moderate dividend yield.
Positive Factors
Earnings Forecast
These results, which are less poor than expected, have finally led us to raise our 2025e adjusted EPS by +8%.
Negative Factors
Operating Profit
Operating profit still decreasing in FY24.
Project Postponements
Project postponements are multiplying rapidly, particularly in the automotive and aerospace sectors, affecting several regions.
Sales Forecast
Alten constantly lowers its revenue forecasts, with sales potentially declining in the fourth quarter of 2024 and no clear growth catalysts for 2025.
Workforce Reduction
There are currently no signs of a recovery and the group started 2025 with -3.4% fewer engineers than it had on average in 2024.

ALTEN SA (ATE) vs. iShares MSCI France ETF (EWQ)

ALTEN SA Business Overview & Revenue Model

Company DescriptionAlten S.A. operates as an engineering and technology consultancy company in France, North America, Germany, Scandinavia, Benelux, Spain, Italy, the United Kingdom, the Asia-Pacific, Switzerland, Eastern Europe, and internationally. The company undertakes design and research projects for the technical and information systems divisions in the industrial, telecommunications, and service sectors. It offers engineering, and research and development outsourcing services, such as digital transformation; product design and development; manufacturing engineering; supply chain and quality; customer service and training; and project and change management services. The company also provides IT services comprising consulting and digital transformation; technical services for digital, big data, data science, and artificial intelligence; development, maintenance, and testing of applications; and cloud, and networks and security infrastructure services. It serves customers in aeronautics, space, defense and naval, security, automotive, rail, energy and environment, life sciences, banking, finance, insurance, telecoms and media, retail and consumer services, and public sectors. Alten S.A. was incorporated in 1988 and is based in Boulogne-Billancourt, France.
How the Company Makes MoneyALTEN SA generates revenue through a diversified model centered on providing consulting services in engineering and technology. The company engages in project-based contracts with clients across various industries, offering expertise in R&D, IT, and digital solutions. Revenue is primarily derived from consulting fees charged to clients, which are based on the scope, duration, and complexity of the projects. ALTEN's strong presence in multiple sectors allows it to capitalize on industry-specific growth trends and technological advancements. Additionally, the company benefits from long-standing relationships with major corporations, which contribute to a stable and recurring revenue stream. Strategic partnerships and collaborations also enhance ALTEN's market reach and service offerings, further supporting its revenue generation capabilities.

ALTEN SA Financial Statement Overview

Summary
Overall, ALTEN SA demonstrates strong financial health with consistent revenue growth and robust cash flow, supported by a solid balance sheet with low leverage. However, the declining net profit margin and return on equity indicate potential efficiency issues that may need addressing to sustain long-term profitability.
Income Statement
75
Positive
ALTEN SA shows a consistent revenue growth with a 1.83% increase from 2023 to 2024, following a strong historical upward trend. The gross profit margin stands at 18.54% for 2024, indicating stable profitability. However, the net profit margin has decreased from 5.73% in 2023 to 4.50% in 2024, signaling declining cost efficiency. Both EBIT and EBITDA margins have shown minor fluctuations but remain healthy.
Balance Sheet
80
Positive
The company maintains a solid equity position with an equity ratio of 60.64% in 2024, reflecting financial stability. The debt-to-equity ratio is low at 0.17, indicating conservative leverage. However, the return on equity has decreased to 8.44% in 2024 from 11.45% in 2023, suggesting reduced profitability from shareholder investments.
Cash Flow
85
Very Positive
ALTEN SA's cash flow is robust, with a significant free cash flow growth rate of 88.76% from 2023 to 2024. The operating cash flow to net income ratio is strong at 2.31, showcasing efficient cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 2.23 reinforces the company's ability to generate cash relative to its net earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.14B4.07B3.78B2.93B2.33B
Gross Profit768.17M714.42M582.68M451.55M268.80M
EBITDA450.74M430.04M682.25M363.17M203.93M
Net Income186.42M233.21M457.57M207.84M98.01M
Balance Sheet
Total Assets3.64B3.41B3.37B2.63B2.15B
Cash, Cash Equivalents and Short-Term Investments288.10M323.40M601.74M312.31M283.42M
Total Debt370.88M367.97M422.20M275.21M258.06M
Total Liabilities1.43B1.37B1.53B1.21B939.49M
Stockholders Equity2.21B2.04B1.84B1.42B1.21B
Cash Flow
Free Cash Flow415.60M220.19M210.27M212.09M294.16M
Operating Cash Flow430.40M241.12M236.39M228.68M306.46M
Investing Cash Flow-326.06M-320.25M58.17M-117.62M-127.10M
Financing Cash Flow-141.40M-192.66M-4.48M-88.82M-92.33M

ALTEN SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price74.90
Price Trends
50DMA
73.08
Positive
100DMA
80.87
Negative
200DMA
81.54
Negative
Market Momentum
MACD
-0.20
Negative
RSI
57.84
Neutral
STOCH
82.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ATE, the sentiment is Positive. The current price of 74.9 is above the 20-day moving average (MA) of 72.19, above the 50-day MA of 73.08, and below the 200-day MA of 81.54, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 82.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ATE.

ALTEN SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRATE
73
Outperform
€2.61B13.958.78%2.00%1.83%-21.09%
65
Neutral
$10.56B15.495.57%1.96%2.71%-26.28%
€616.37M0.0158.08%
€631.38M16.5414.12%2.85%
€1.11B21.1714.35%2.86%
€4.19B16.5916.26%1.97%
€1.39B16.0212.58%0.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:ATE
ALTEN SA
74.90
-28.25
-27.39%
GB:0DNH
Atos SE
33.33
-39.67
-54.34%
GB:0IPY
Aubay Société Anonyme
48.70
11.97
32.59%
GB:0GX2
Neurones
45.85
5.95
14.91%
GB:0NJQ
Sopra Steria
206.80
19.52
10.42%
GB:0G1T
Wavestone
49.50
-4.42
-8.20%

ALTEN SA Corporate Events

ALTEN SA Reports 2024 Results and Anticipates Challenges Ahead
Feb 20, 2025

ALTEN SA reported a slight organic decline in its 2024 annual results, with an operating margin of 9.1% of revenue. Despite a 1.8% growth in activity, driven by a significant increase in France, the company faced challenges in the UK, Germany, and Northern European markets, impacting its financial performance. The company achieved substantial free cash flow growth and made strategic acquisitions in Asia and Europe, strengthening its market position. However, ALTEN anticipates continued challenges in 2025, particularly in European markets, with expectations for potential activity decline in early 2025. The company remains hopeful for growth in the latter half of the year, contingent on macroeconomic improvements.

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.Date of analysis: Jun 27, 2025