Atos SE (ATO) AI Stock Analysis

• Market Cap: €866.59M
• Dividend Yield: N/A
• Average Volume (3M): 197.84K
• Price to Earnings (P/E): 0.5
• Beta (1Y): -9.63
• Revenue Growth: -14.60%
• EPS Growth: N/A
• Country: FR
• Employees: 71,279
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): -37.36
• Shares Outstanding: 19,035,872
• 10 Day Avg. Volume: 248,875
• 30 Day Avg. Volume: 197,844
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): <0.00001
• P/FCF Ratio: >-0.01
• 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: €42.00
• Price Target Upside: -7.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: €48.00 ▲(5.45% Upside)

Atos SE's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and liquidity issues. While technical analysis provides some short-term bullish signals, the negative MACD and overbought Stochastic suggest caution. The low P/E ratio indicates potential undervaluation, but it may also reflect underlying financial difficulties.

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

Overall, Atos SE shows substantial financial challenges across income, balance sheet, and cash flow metrics. Revenue and profitability have declined, leverage has increased, and cash flows are negative, highlighting liquidity and operational issues. The company needs strategic improvements to stabilize and improve its financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.58B	10.69B	11.34B	10.84B	11.18B
Gross Profit	3.22B	3.49B	3.40B	3.51B	4.10B
EBITDA	1.41B	-2.32B	-62.00M	-1.49B	1.49B
Net Income	248.00M	-3.44B	-1.01B	-2.96B	550.00M
Balance Sheet
Total Assets	8.25B	11.29B	16.39B	16.82B	18.13B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.31B	3.35B	3.39B	3.29B
Total Debt	2.81B	5.48B	5.88B	5.85B	5.09B
Total Liabilities	7.45B	11.23B	12.59B	12.38B	11.26B
Stockholders Equity	799.00M	55.00M	3.79B	4.44B	6.86B
Cash Flow
Free Cash Flow	-1.85B	-618.00M	176.00M	107.00M	899.00M
Operating Cash Flow	-1.40B	-413.00M	427.00M	379.00M	1.22B
Investing Cash Flow	-203.00M	213.00M	-251.00M	-656.00M	619.00M
Financing Cash Flow	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
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
ATO	48 Neutral	€866.59M	0.54	58.08%	―	-14.60%	―
0O1S	―	€2.31B	12.84	8.78%	1.40%	―	―
0IPY	―	€596.26M	16.31	14.12%	2.80%	―	―
0HAZ	―	€20.92B	13.50	14.30%	―	―	―
0NJQ	―	€3.22B	12.40	14.39%	―	―	―
0G1T	―	€1.24B	17.47	12.58%	0.78%	―	―

Atos SE Corporate Events

Atos Secures £150 Million Contract with DEFRA for Digital Transformation

Atos has been awarded a five-year, £150 million contract by the UK Department for Environment, Food and Rural Affairs (DEFRA) to enhance its service desk and end user services for 34,000 users. This initiative aims to improve service quality and efficiency through the integration of modern technologies such as AI, ML, and automation, while also focusing on sustainability by refurbishing hardware and minimizing waste. The contract underscores Atos’ position as a leader in digital workplace services and its commitment to sustainable and innovative solutions.