Atos SE (ATO) AI Stock Analysis

• Market Cap: €1.01B
• Dividend Yield: N/A
• Average Volume (3M): 215.07K
• Price to Earnings (P/E): 0.6
• Beta (1Y): -9.55
• Revenue Growth: -14.60%
• EPS Growth: N/A
• Country: FR
• Employees: 71,279
• Sector: N/A
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): -37.36
• Shares Outstanding: 19,412,500
• 10 Day Avg. Volume: 178,581
• 30 Day Avg. Volume: 215,068
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.00430
• P/FCF Ratio: -0.02
• 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: 1.77% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €59.00 ▲(20.09% Upside)

The score is held down primarily by very weak financial performance (profitability pressure, high leverage, and negative cash flows). This is partially offset by improving technical momentum and a very low P/E, but valuation/technicals do not outweigh the fundamental liquidity and solvency risks.

Atos SE Business Overview & Revenue Model

Company Description

Atos SE is a global leader in digital transformation, providing a wide range of services in IT consulting, managed services, systems integration, and infrastructure management. The company operates across various sectors, including healthcare, finance, manufacturing, and public services. With a focus on innovation, Atos offers core products such as cloud services, cybersecurity solutions, and big data analytics, aiming to help businesses enhance their operational efficiency and drive digital transformation.

How the Company Makes Money

Atos SE generates revenue through a diversified model that includes several key streams. Primarily, the company earns income from its IT services and consulting, where it provides tailored solutions to clients in various industries. Managed services, including outsourcing and infrastructure management, constitute another significant revenue source, helping organizations reduce costs and improve efficiency. Additionally, Atos capitalizes on cloud services and cybersecurity solutions, which are increasingly in demand as businesses shift towards digital operations. Strategic partnerships with technology leaders and participation in large-scale projects further enhance its revenue opportunities, while ongoing investments in innovation and digital technologies position Atos to capture new market trends and client needs, driving sustainable growth.

Atos SE Financial Statement Overview

Summary

Financial statements indicate severe weakness: declining revenues and deteriorating margins with negative EBIT/EBITDA, elevated leverage from shrinking equity, and negative operating/free cash flow pointing to liquidity strain.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Atos SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
ATE	76 Outperform	€2.55B	16.88	6.98%	2.08%	-0.23%	-37.70%
WAVE	76 Outperform	€1.32B	16.64	12.87%	0.84%	7.00%	20.56%
AUB	75 Outperform	€707.60M	20.44	12.87%	2.54%	1.02%	6.31%
CAP	74 Outperform	€20.19B	12.98	14.30%	2.35%	-0.76%	-6.99%
SOP	65 Neutral	€2.74B	9.80	14.39%	3.03%	-4.12%	43.37%
ATO	52 Neutral	€1.01B	0.60	―	―	-14.60%	―