ALTEN SA (ATE) AI Stock Analysis

• Market Cap: €2.22B
• Dividend Yield: 2.08%
• Average Volume (3M): 61.91K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.24
• Revenue Growth: -0.23%
• EPS Growth: -37.70%
• Country: FR
• Employees: 56,373
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.69
• Shares Outstanding: 35,448,826
• 10 Day Avg. Volume: 67,115
• 30 Day Avg. Volume: 61,908
• PEG Ratio: -0.55
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.00
• 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: €122.50
• Price Target Upside: 92.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 7.23
• Revenue Forecast (FY): €4.20B

• Rating: 57 Neutral
• Price Target: €62.00 ▼(-2.44% Downside)
• Action: Downgraded Date: 02/26/26
• Date: Action: Downgraded 02/26/26

The score is primarily held back by sharp 2025 financial deterioration (revenue decline and margin compression) and bearish technicals (price below key moving averages with negative momentum). Low leverage and decent cash conversion provide partial support, while valuation and dividend yield are only moderately supportive.

Positive Factors

Conservative balance sheet

Modest leverage and steadily growing equity provide durable financial flexibility. Low debt-to-equity reduces refinancing and interest risk, supporting investment in headcount or technology and cushioning the business through cyclical downturns over the next several months.

Solid cash generation quality

FCF that closely tracks net income indicates earnings quality and conservative working-capital dynamics. Reliable cash conversion supports funding of contracts, dividends or selective M&A without excessive reliance on external financing, a durable strength over 2–6 months.

Diversified services and durable revenue mix

A multi-industry footprint and reliance on long-term contracts and technology partnerships reduce single-sector cyclicality. This diversification and sticky contract-based revenue underpin steadier demand, cross-selling opportunities and reskilling of staff across projects over the medium term.

Negative Factors

Steep 2025 revenue contraction

A sharp drop in revenue erodes scale advantages in a services model: utilization, pricing leverage and fixed-cost absorption decline. If recovery is slow, reduced project flow can compress margins and limit reinvestment in skills and technology over multiple quarters.

Material margin compression

Substantial margin erosion signals pricing pressure, cost inflation or adverse business mix. Lower margins directly reduce free cash flow and weaken the firm's ability to fund strategic initiatives or absorb future shocks, posing a persistent headwind absent structural fixes.

Declining return on equity

A steep fall in ROE indicates reduced capital efficiency and weaker profitability relative to the equity base. Persistently low ROE can constrain shareholder returns and limit the payback on reinvested earnings, creating longer-term pressure on strategic flexibility.

ALTEN SA Business Overview & Revenue Model

Company Description

Alten 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 Money

ALTEN SA generates revenue through a business model that primarily revolves around providing consulting and engineering services to various industries. The company earns money by charging clients for its expertise in project management, engineering, and IT solutions, typically on a time-and-materials or fixed-price basis. Key revenue streams include long-term contracts with major corporations, as well as project-based work that involves tailored solutions for specific client needs. Additionally, ALTEN benefits from partnerships with leading technology firms and collaborations that enhance its service offerings, allowing the company to tap into emerging technologies and market trends, further strengthening its revenue generation capabilities.

ALTEN SA Financial Statement Overview

Summary

Low leverage and steady equity growth support balance-sheet resilience, and free cash flow generally tracks net income, indicating reasonable earnings quality. However, 2025 showed a steep revenue contraction and meaningful margin compression (net margin down to ~2.6%), which materially weakens recent profitability momentum.

Income Statement

Revenue has expanded materially since 2020, but growth has cooled sharply, with 2025 showing a steep contraction versus the prior year. Profitability has also weakened: net margin has compressed from ~12.1% (2022) to ~2.6% (2025), and gross margin fell notably in 2025, signaling higher cost pressure and/or pricing dilution. EBIT and EBITDA margins remain positive but have trended down from the 2022 peak, pointing to a less favorable earnings mix and reduced operating leverage.

Balance Sheet

The balance sheet looks conservatively financed, with debt-to-equity consistently around ~0.17–0.23, indicating modest leverage for the business. Equity has steadily grown over time, supporting balance-sheet resilience. The main weakness is profitability on equity: return on equity has come down meaningfully from the 2022 high (~24.9%) to a much lower level in 2025 (~4.8%), suggesting lower earnings power relative to the capital base.

Cash Flow

Cash generation is solid, with free cash flow closely tracking net income (roughly ~0.89–0.97x across the period), which supports earnings quality. However, operating cash flow relative to revenue is modest (about ~19%–43% using the provided ratio), and free cash flow declined in 2025 (about -19.7% growth), consistent with the profit and margin pressure seen in the income statement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.10B	4.14B	4.07B	3.78B	2.93B
Gross Profit	341.82M	768.17M	714.42M	582.68M	451.55M
EBITDA	416.99M	450.74M	430.04M	682.25M	363.17M
Net Income	106.92M	186.42M	233.21M	457.57M	207.84M
Balance Sheet
Total Assets	3.64B	3.64B	3.41B	3.37B	2.63B
Cash, Cash Equivalents and Short-Term Investments	348.29M	288.10M	323.40M	601.74M	312.31M
Total Debt	449.44M	370.88M	367.97M	422.20M	275.21M
Total Liabilities	1.41B	1.43B	1.37B	1.53B	1.21B
Stockholders Equity	2.22B	2.21B	2.04B	1.84B	1.42B
Cash Flow
Free Cash Flow	320.24M	415.60M	220.19M	210.27M	212.09M
Operating Cash Flow	332.01M	430.40M	241.12M	236.39M	228.68M
Investing Cash Flow	-105.47M	-326.06M	-320.25M	58.17M	-117.62M
Financing Cash Flow	-157.98M	-141.40M	-192.66M	-4.48M	-88.82M

ALTEN SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.55
• 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:ATE, the sentiment is Negative. The current price of 63.55 is below the 20-day moving average (MA) of 65.76, below the 50-day MA of 70.65, and below the 200-day MA of 70.35, indicating a bearish trend. The MACD of -3.24 indicates Negative momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ATE.

ALTEN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAVE	76 Outperform	€1.20B	15.04	12.87%	0.84%	7.00%	20.56%
AUB	75 Outperform	€579.06M	16.72	12.87%	2.54%	1.02%	6.31%
NRO	72 Outperform	€851.51M	16.75	14.08%	3.07%	7.39%	4.58%
SOP	65 Neutral	€2.66B	8.62	14.39%	3.03%	-4.12%	43.37%
ATE	57 Neutral	€2.22B	21.01	6.98%	2.08%	-0.23%	-37.70%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ATO	52 Neutral	€793.65M	0.47	―	―	-14.60%	―