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Atos SE (AEXAY)
OTHER OTC:AEXAY
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Atos SE
(OTC:AEXAY)
42Neutral
Atos SE (AEXAY) vs. S&P 500 (SPY)
Market Cap
$822.14M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)<0.1
Beta (1Y)0.74
Revenue Growth-7.76%
EPS Growth-343.59%
CountryUS
Employees78,112
SectorTechnology
Sector Strength55
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.76
Shares Outstanding951,149,750,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.11
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Atos SE Business Overview & Revenue Model
Company DescriptionAtos 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 MoneyAtos SE generates revenue through a diversified business model that includes multiple streams. Key revenue sources include IT infrastructure management, business and platform solutions, cloud and digital workplace services, and big data and cybersecurity solutions. The company offers these services through long-term contracts with private and public sector clients, ensuring a steady inflow of income. Additionally, Atos benefits from strategic partnerships and collaborations with major technology providers, which enhance its service offerings and broaden its market reach. The company's ability to adapt to emerging technology trends, such as cloud computing and cybersecurity, plays a critical role in maintaining its competitive edge and driving financial growth.
Atos SE Financial Statement Overview
Summary
Atos SE faces significant financial challenges, with declining revenues, negative profitability indicators, and increased leverage. While the asset base remains stable, the company struggles with cash flow generation and profitability. Addressing operational inefficiencies and improving cost management are crucial for financial recovery.Income Statement
Atos SE has shown a declining revenue trend over recent years, with a revenue decrease from 2019 to 2023. Gross profit margins have also deteriorated, indicating potential cost management issues. The net profit margin is negative and worsening, highlighting significant challenges in achieving profitability. Additionally, EBIT and EBITDA margins are negative, reflecting operational inefficiencies and increased costs.20
Very Negative
Balance Sheet
The company's debt-to-equity ratio has significantly increased due to declining equity, suggesting a high leverage risk. Return on equity has been negative, further indicating profitability issues. The equity ratio has decreased over time, showing reduced financial stability. However, the company maintains a relatively stable asset base, which is a positive aspect.40
Negative
Cash Flow
Atos SE's cash flow performance is concerning, with operating cash flow turning negative in 2023. Free cash flow has also been negative, indicating cash constraints. The operating cash flow to net income ratio is unfavorable due to negative cash flow and net income, suggesting difficulties in converting earnings to cash. Free cash flow growth has been negative, reflecting ongoing cash flow challenges.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.11B | 10.69B | 11.34B | 10.84B | 11.18B | 11.59B | Gross Profit |
| 1.02B | 3.49B | 3.40B | 3.51B | 4.10B | 4.41B | EBIT |
| -1.50B | -3.11B | -371.00M | -814.00M | 650.00M | 660.00M | EBITDA |
| 742.00M | -2.32B | 416.00M | -1.49B | 1.49B | 1.37B | Net Income Common Stockholders |
| -4.78B | -3.44B | -1.02B | -2.96B | 550.00M | 370.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.33B | 2.31B | 3.35B | 3.39B | 3.29B | 2.42B | Total Assets |
| 7.20B | 11.29B | 16.39B | 16.82B | 18.13B | 18.65B | Total Debt |
| 400.80M | 5.48B | 5.88B | 5.85B | 5.09B | 5.42B | Net Debt |
| -905.40M | 3.18B | 2.54B | 2.48B | 1.80B | 3.01B | Total Liabilities |
| 4.26B | 11.23B | 12.59B | 12.38B | 11.26B | 11.56B | Stockholders Equity |
| 2.91B | 55.00M | 3.79B | 4.44B | 6.86B | 7.08B |
| Cash Flow | Free Cash Flow | ||||
| -1.64B | -618.00M | 176.00M | 107.00M | 899.00M | 1.04B | Operating Cash Flow |
| -1.27B | -413.00M | 427.00M | 379.00M | 1.22B | 1.36B | Investing Cash Flow |
| -152.00M | 213.00M | -251.00M | -656.00M | 619.00M | 310.00M | Financing Cash Flow |
| -325.00M | -622.00M | -304.00M | 300.00M | -868.00M | -1.62B |
Atos SE Technical Analysis
Neutral
0.14
Price Trends
0.14
Negative
0.14
Positive
0.19
Negative
Market Momentum
>-0.01
Negative
49.10
Neutral
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEXAY, the sentiment is Neutral. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEXAY.
Atos SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.40B | 16.86 | 22.15% | 1.31% | 6.46% | -16.94% | |
79 Outperform | $7.45B | 37.53 | 21.80% | ― | 12.74% | 9.92% | |
78 Outperform | $5.56B | 16.25 | 21.53% | 1.26% | 0.47% | -18.98% | |
58 Neutral | $11.04B | 9.83 | -6.56% | 3.16% | 7.59% | -10.43% | |
48 Neutral | $7.05B | 53.43 | 12.09% | ― | -8.20% | ― | |
47 Neutral | $2.68B | 267.98 | -2.46% | ― | -5.65% | 78.20% | |
42 Neutral | $822.14M | 0.04 | 61.18% | ― | -7.76% | -343.59% |
* Technology Sector Average
Performance Comparison
AEXAY
Atos SE
0.14
-0.23
-62.16%
EXLS
Exlservice Holdings
45.48
16.36
56.18%
G
Genpact
47.73
17.31
56.90%
SAIC
Science Applications
116.35
-5.32
-4.37%
DXC
DXC Technology
14.64
-4.94
-25.23%
KD
Kyndryl Holdings Incorporation
29.85
10.21
51.99%
Atos SE Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -33.33% | Next Earnings Date: Aug 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for the company with significant revenue and cash flow declines. However, the completion of financial restructuring and positive Q4 commercial performance offer some optimism for future recovery.Highlights
Strong Commercial Activity in Q4 2024
Q4 book-to-bill ratio was above 110%, stronger than Q4 2023, with €2.7 billion in contracts signed, including multiyear renewals and new wins.
Completion of Financial Restructuring
Financial restructuring was completed on December 18, leading to improved liquidity and a credit rating of B- with a stable outlook.
Positive Client Retention
Attrition rate was around 15%, with key employee retention at 92%, indicating stable workforce conditions.
Lowlights
Revenue Decline
2024 revenue was €9.6 billion, down 5.4% organically, with Eviden down 6.7% and Tech Foundations declining by 4.1%.
Negative Free Cash Flow
The group reported a negative free cash flow of minus €2.2 billion, due to the end of one-off working capital optimization actions and higher CapEx linked to HPC contracts.
Operating Margin Decline
Group operating margin was €199 million, down 210 basis points compared to '23, impacted by additional SG&A costs and provisions for underperforming contracts.
North America Revenue Challenges
Revenue in North America declined by 12%, attributed to financial instability concerns, resulting in contract losses.
Company Guidance
During the call, the company provided several key metrics and updates on its financial performance and strategic direction. For fiscal year 2024, the group reported a revenue of €9.6 billion, reflecting a 5.4% organic decline compared to the previous year. The operating margin was €199 million, or 2.1% of revenue, marking a 210 basis point drop from 2023. Free cash flow for the year was negative €2.2 billion, largely due to the cessation of working capital optimization actions, which impacted cash flow by €1.5 billion. The net debt post-restructuring was €1.2 billion, with a book value of €0.3 billion after IFRS 9 adjustments. The company noted a strong Q4 book-to-bill ratio of over 110%, driven by multiyear contract renewals and new wins. The strategic transformation plan is underway, and a detailed strategy for 2025-2028 will be presented at the Capital Markets Day in May. Additionally, the group highlighted a significant contract activity rebound in Q4, resulting in €2.7 billion in order entries, and emphasized a focus on cash flow and profitability improvements moving forward.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.