Ateme SA (ATEME) AI Stock Analysis

• Market Cap: €79.22M
• Dividend Yield: N/A
• Average Volume (3M): 8.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 3.26%
• EPS Growth: 95.41%
• Country: FR
• Employees: 545
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.29
• Shares Outstanding: 11,588,964
• 10 Day Avg. Volume: 12,154
• 30 Day Avg. Volume: 8,666
• PEG Ratio: -0.34
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -6.14
• 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: €7.00
• Price Target Upside: 2.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €6.50 ▼(-4.97% Downside)

Ateme SA's overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and cash flow. The technical analysis provides some positive momentum signals, but valuation concerns due to a negative P/E ratio and lack of dividends weigh heavily on the score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and provide bundled solutions, driving further sales and strengthening competitive positioning.

Industry Trends

Growing demand for video streaming and cloud services supports long-term revenue growth, aligning with ATEME's core offerings.

Product Offering

Innovative software solutions like TITAN enhance video quality and optimize bandwidth, providing a competitive edge in the video delivery market.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder investment in growth initiatives and affect financial stability over the long term.

Cash Flow Issues

Negative cash flow impacts liquidity and limits the company's ability to fund operations and strategic investments.

Equity Decline

A decrease in equity suggests financial strain and increased reliance on liabilities, potentially affecting long-term financial health.

Ateme SA Business Overview & Revenue Model

Company Description

ATEME SA, together with its subsidiaries, provides video compression and delivery solutions worldwide. The company offers various solutions, such as TITAN Live, a software-based live video compression for the converged headend; TITAN File, a video transcoding transcoder; TITAN Mux, a multi-function software stream processing solution; TITAN Playout; KYRION CM5000e, an ultra-low latency encoder; TITAN Edge encoder; TITAN Edge decoder; and TITAN Edge gateway. It also provides NEA-CDN, a OTT scale service solution; NEA-DVR, a unlimited recording on every screen; NEA-Live, a broadcast-quality, low-latency, live, and time-shifted TV services; NEA-Composer, a dynamic Ad insertion and linear origination solutions; PILOT Media, a cloud native media supply chain solution; and PILOT Manager, a cloud native management system. The company was incorporated in 1991 and is headquartered in Vélizy-Villacoublay, France.

How the Company Makes Money

Ateme generates revenue primarily through the sale of its software solutions and services, which include licensing fees for its video encoding and streaming technologies. The company has a subscription-based model for some of its services, allowing clients to access its products on an ongoing basis. Key revenue streams come from partnerships with major telecommunications and media companies that integrate ATEME's solutions into their offerings. Additionally, ATEME earns revenue from professional services, including consulting, support, and training, helping clients optimize their video delivery systems. Significant partnerships and collaborations with industry leaders enhance ATEME's market presence and contribute to its earnings.

Ateme SA Financial Statement Overview

Summary

Ateme SA is facing financial challenges, particularly in profitability and cash flow generation. The declining profitability metrics and negative free cash flow highlight the need for operational improvements. While the balance sheet shows moderate leverage, the decreasing equity base needs attention.

Income Statement

Ateme SA has faced challenges in maintaining profitability, with a consistent decline in net income over the years, leading to a negative net profit margin. The gross profit margin has slightly decreased, reflecting pressure on costs or pricing. Revenue growth has been inconsistent, with a notable decline in 2024 compared to the previous year.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced financial leverage. However, the declining stockholders' equity over the years is concerning. The equity ratio has also decreased, suggesting increased dependency on liabilities.

Cash Flow

Ateme's cash flow statement reveals challenges in generating positive free cash flow, with increasing operating cash flow deficits. The company has struggled to convert its net income into cash effectively, impacting its free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.68M	93.50M	100.03M	90.55M	78.80M	70.10M
Gross Profit	54.85M	51.73M	59.86M	52.19M	46.47M	36.13M
EBITDA	-826.00K	-5.07M	204.00K	-1.83M	1.19M	312.00K
Net Income	-411.00K	-5.38M	-4.00M	-46.00K	1.14M	-275.00K
Balance Sheet
Total Assets	102.26M	118.43M	108.05M	101.44M	93.01M	93.27M
Cash, Cash Equivalents and Short-Term Investments	2.29M	9.46M	5.63M	3.90M	11.45M	17.09M
Total Debt	32.66M	37.95M	33.83M	26.95M	24.66M	23.48M
Total Liabilities	71.42M	84.86M	70.00M	60.59M	53.56M	57.91M
Stockholders Equity	30.84M	33.57M	38.04M	40.84M	39.44M	35.56M
Cash Flow
Free Cash Flow	-9.07M	-10.17M	-1.44M	-10.79M	-2.94M	3.29M
Operating Cash Flow	-8.29M	-8.42M	627.00K	-7.58M	72.00K	5.76M
Investing Cash Flow	-2.08M	-2.91M	-3.38M	-3.08M	-7.12M	-9.31M
Financing Cash Flow	8.44M	2.90M	5.40M	1.94M	1.91M	9.95M

Ateme SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ATEME, the sentiment is Positive. The current price of 6.84 is below the 20-day moving average (MA) of 6.84, above the 50-day MA of 6.47, and above the 200-day MA of 5.42, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ATEME.

Ateme SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNTG	63 Neutral	€25.61M	17.12	6.35%	6.46%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EKI	53 Neutral	€56.77M	-6.31	-7.69%	―	1.56%	-910.94%
ATEME	52 Neutral	€79.22M	-190.53	-1.34%	―	3.26%	95.41%
ALHF	47 Neutral	€11.85M	-6.31	-7.32%	47.62%	―	―
ALBPK	45 Neutral	€27.59M	-26.35	―	―	15.01%	79.05%