Atos SE (ATO) AI Stock Analysis

• Market Cap: €625.32M
• Dividend Yield: N/A
• Average Volume (3M): 152.41K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -8.71
• Revenue Growth: -10.44%
• EPS Growth: 49.00%
• Country: FR
• Employees: 71,279
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): -37.36
• Shares Outstanding: 19,035,872
• 10 Day Avg. Volume: 162,276
• 30 Day Avg. Volume: 152,409
• 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: €35.50
• Price Target Upside: 8.07% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 34 Underperform
• Price Target: ―

Atos SE's overall stock score is driven by significant financial challenges including declining revenues, profitability issues, high leverage, and negative cash flows. The lack of technical analysis data and earnings call insights further complicates the assessment. While the low P/E ratio suggests potential undervaluation, it also reflects market concerns about the company's financial health and operational stability.

Atos SE Business Overview & Revenue Model

Company Description

Atos SE is a global leader in digital transformation services, providing a wide range of solutions in the information technology sector. The company specializes in high-tech transactional services, unified communications, cloud computing, big data, cybersecurity, and digital workplace solutions. With a presence in over 70 countries, Atos serves various industries including public sector, healthcare, manufacturing, financial services, and telecommunications, offering customized services and solutions that drive efficiency and innovation.

How the Company Makes Money

Atos SE generates revenue through a diversified portfolio of services and solutions that cater to the digital transformation needs of businesses and governments worldwide. The company's primary revenue streams include managed services, which encompass IT infrastructure management and data center operations; business and platform solutions, which involve application development, business process outsourcing, and consulting services; and big data and cybersecurity solutions, offering advanced analytics and protective services to safeguard client data. Atos also collaborates with major technology partners to enhance its service offerings, providing integrated solutions that leverage cutting-edge technologies such as cloud computing and artificial intelligence. Strategic acquisitions and partnerships further bolster Atos' market position, facilitating access to new markets and innovative technologies that drive additional revenue growth.

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	$34.80B	4.91	-10.41%	2.08%	6.51%	-6.25%
ATO	34 Underperform	€625.32M	0.41	58.08%	―	-10.44%	49.00%
0O1S	―	€2.39B	12.82	8.78%	1.34%	―	―
0IPY	―	€651.83M	16.68	14.12%	2.59%	―	―
0HAZ	―	€21.25B	13.50	14.30%	―	―	―
0NJQ	―	€3.74B	13.37	14.39%	―	―	―
0G1T	―	€1.41B	12.07	12.58%	0.93%	―	―

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.