Atos SE (ATO) AI Stock Analysis

• Market Cap: €1.02B
• Dividend Yield: N/A
• Average Volume (3M): 215.07K
• Price to Earnings (P/E): 0.6
• Beta (1Y): -10.04
• Revenue Growth: -14.60%
• EPS Growth: N/A
• Country: FR
• Employees: 71,279
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -37.36
• Shares Outstanding: 19,378,513
• 10 Day Avg. Volume: 178,581
• 30 Day Avg. Volume: 215,068
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: -2.38% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: €53.00 ▲(3.48% Upside)

Atos SE's overall stock score is primarily impacted by its poor financial performance, which is a significant concern. While the technical analysis provides some positive signals, they are not strong enough to offset the financial issues. The valuation suggests potential undervaluation, but the lack of a dividend yield and financial instability are key risks.

Atos SE Business Overview & Revenue Model

Company Description

Atos SE (ATO) is a multinational information technology services and consulting company headquartered in France. It operates in various sectors, including digital transformation, cloud services, cybersecurity, and big data. Atos offers a wide range of core products and services, including IT infrastructure management, business process outsourcing, and enterprise software solutions aimed at enhancing operational efficiency for clients across multiple industries such as healthcare, manufacturing, and public sector.

How the Company Makes Money

Atos generates revenue through a diversified model that includes several key streams. Primarily, the company earns money by providing IT services and solutions to businesses, which encompasses consulting, systems integration, and managed services. Additionally, Atos has significant income from its cloud services, where it helps organizations migrate and manage their IT infrastructures in the cloud. The company also capitalizes on cybersecurity services by offering protection and compliance solutions to safeguard clients' data. Partnerships with major tech firms and consistent investments in innovation further bolster its earnings, allowing Atos to deliver cutting-edge solutions that meet evolving client needs and enhance operational efficiency.

Atos SE Financial Statement Overview

Summary

Atos SE faces significant financial challenges, with declining revenues, negative margins, high debt-to-equity ratio, and negative cash flows. These factors indicate liquidity issues and operational inefficiencies, necessitating strategic improvements.

Income Statement

Atos SE has faced declining revenues over recent years, with a significant drop from 2020 to 2024. The gross profit margin has deteriorated, and EBIT and EBITDA margins are notably negative, indicating operational challenges. Although net income turned positive in 2024, the overall picture suggests declining profitability and revenue pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to shrinking equity, posing financial risk. Despite a reduction in total assets, liabilities remain substantial. The equity ratio has fallen, reflecting increased financial leverage and potential solvency concerns.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow in recent years, indicating liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash. There has been a declining trend in free cash flow, stressing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.63B	9.58B	10.69B	11.27B	10.84B	11.18B
Gross Profit	4.09B	3.22B	3.49B	1.63B	3.51B	4.10B
EBITDA	-254.00M	1.41B	-2.32B	-62.00M	-2.03B	1.49B
Net Income	1.49B	248.00M	-3.44B	-1.01B	-2.96B	550.00M
Balance Sheet
Total Assets	7.18B	8.25B	11.29B	16.39B	16.82B	18.13B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.74B	2.31B	3.35B	3.39B	3.29B
Total Debt	2.81B	2.81B	5.48B	5.88B	5.85B	5.09B
Total Liabilities	7.27B	7.45B	11.23B	12.59B	12.38B	11.26B
Stockholders Equity	-91.00M	799.00M	55.00M	3.79B	4.44B	6.86B
Cash Flow
Free Cash Flow	-222.00M	-1.85B	-618.00M	176.00M	107.00M	899.00M
Operating Cash Flow	37.00M	-1.40B	-413.00M	427.00M	379.00M	1.22B
Investing Cash Flow	-11.00M	-203.00M	213.00M	-251.00M	-656.00M	619.00M
Financing Cash Flow	782.00M	1.02B	-622.00M	-304.00M	300.00M	-868.00M

Atos SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAVE	―	€1.25B	16.40	12.58%	0.92%	34.61%	13.69%
ATE	―	€2.60B	17.24	6.98%	2.00%	-0.23%	-37.70%
CAP	―	€21.73B	13.85	14.30%	2.65%	-0.76%	-6.99%
AUB	―	€578.95M	16.60	12.87%	2.85%	1.02%	6.31%
SOP	―	€2.82B	10.08	14.39%	3.34%	-4.12%	43.37%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ATO	―	€1.02B	0.62	―	―	-14.60%	―