Ateme SA (ATEME) AI Stock Analysis

• Market Cap: €64.86M
• Dividend Yield: N/A
• Average Volume (3M): 8.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 25.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: €5.00 ▼(-10.07% Downside)

Ateme SA's overall stock score is primarily impacted by its financial performance and technical analysis. The company is facing significant financial challenges, with declining profitability and negative cash flow. Technical indicators suggest a bearish trend, further weighing on the stock. The valuation is unattractive due to a negative P/E ratio and no dividend yield.

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 licenses and subscription services for its video processing solutions. The company offers a range of licensing models, including perpetual licenses, annual subscriptions, and usage-based pricing, catering to diverse customer needs. Key revenue streams include direct sales to broadcasting companies, telecom operators, and content providers, as well as ongoing maintenance and support contracts. Additionally, ATEME has formed strategic partnerships with major technology and telecommunications firms, enhancing its market reach and providing bundled solutions that drive further sales. The increasing demand for high-quality video streaming and the transition to cloud-based services are significant factors contributing to Ateme's earnings growth.

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	36.85M	33.83M	26.95M	24.66M	27.22M
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: Neutral
• Last Price: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 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:ATEME, the sentiment is Neutral. The current price of 5.56 is below the 20-day moving average (MA) of 5.75, below the 50-day MA of 5.87, and above the 200-day MA of 4.89, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ATEME.

Ateme SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALBPK	―	€30.73M	―	―	―	15.03%	79.05%
EKI	―	€42.17M	―	-7.69%	―	1.56%	-910.94%
ATEME	―	€64.86M	―	-1.34%	―	3.26%	95.41%