Atos SE (ATO) AI Stock Analysis

• Market Cap: €955.93M
• Dividend Yield: N/A
• Average Volume (3M): 215.07K
• Price to Earnings (P/E): 0.6
• Beta (1Y): -9.86
• 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: >-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: -9.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: €43.00 ▼(-22.19% Downside)

Atos SE's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and liquidity issues. Technical analysis further indicates bearish momentum. While the low P/E ratio suggests potential undervaluation, it is overshadowed by significant financial and operational challenges.

Positive Factors

Diversified Revenue Streams

Atos's diversified revenue model across IT, cloud, and cybersecurity provides resilience against sector-specific downturns and supports long-term growth.

Innovation and Partnerships

Strategic partnerships and innovation investments enhance Atos's competitive edge, enabling it to deliver cutting-edge solutions and maintain market relevance.

Positive Net Income Turnaround

Turning net income positive marks a significant recovery step, indicating potential for improved profitability and financial health.

Negative Factors

Declining Revenue Trend

Consistent revenue decline reflects challenges in market demand or competitive positioning, impacting long-term growth prospects.

High Debt-to-Equity Ratio

A high debt-to-equity ratio increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates liquidity issues, hindering Atos's ability to fund operations and strategic initiatives without external financing.

Atos SE Business Overview & Revenue Model

Company Description

Atos SE provides digital transformation solutions and services worldwide. It offers cloud, cybersecurity, and computing solutions, as well as end-to-end vertical solutions, data platforms, and infrastructure solutions. The company's solutions include advanced computing; analytics, artificial intelligence, and automation; cloud solutions; customer journey analytics and digital customer experience; advance detection and response, data protection and governance, and trusted digital identities, as well as digital workplace, hybrid cloud, and IoT and OT security; digital consulting; digital workplace; and edge computing and Internet of things. It also offers infrastructure and foundation services. It serves energy and utilities, financial services and insurance, healthcare and life sciences, manufacturing, public sector and defense, telecommunications and media, transport and logistics, and retail industries. Atos SE was incorporated in 1982 and is headquartered in Bezons, France.

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

Atos SE faces significant financial challenges, with declining revenues, negative margins, high debt-to-equity ratio, and negative cash flows. These factors indicate severe operational and liquidity issues, 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	76 Outperform	€1.42B	18.54	12.58%	0.79%	34.61%	13.69%
AUB	75 Outperform	€616.14M	17.66	12.87%	2.57%	1.02%	6.31%
CAP	74 Outperform	€21.87B	13.94	14.30%	2.30%	-0.76%	-6.99%
ATE	68 Neutral	€2.43B	16.04	6.98%	2.07%	-0.23%	-37.70%
SOP	65 Neutral	€3.01B	10.77	14.39%	3.13%	-4.12%	43.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ATO	43 Neutral	€955.93M	0.58	―	―	-14.60%	―