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Atos SE (FR:ATO)
:ATO

Atos SE (ATO) AI Stock Analysis

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Atos SE

(LSE:ATO)

Rating:34Underperform
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 (ATO) vs. iShares MSCI France ETF (EWQ)

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 primarily through its diverse portfolio of IT and digital transformation services. Key revenue streams include managed services, which encompass infrastructure management and cloud operations, and consulting services, where Atos provides strategic digital advisory. Additionally, the company earns from system integration, offering tailored IT solutions to meet specific customer needs. Cybersecurity services also contribute significantly to Atos' earnings as businesses increasingly prioritize digital security. Significant partnerships with technology giants and industry leaders further enhance revenue opportunities, allowing Atos to offer comprehensive, cutting-edge solutions to its clients. The company's global presence and expertise in emerging technologies position it to capitalize on the growing demand for digital transformation across various industries.

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
20
Very Negative
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
30
Negative
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
15
Very Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.58B10.69B11.34B10.84B11.18B
Gross Profit
4.61B3.49B1.66B1.63B2.30B
EBIT
-2.66B-3.11B198.00M200.00M784.00M
EBITDA
-2.35B-2.32B-62.00M-2.03B1.49B
Net Income Common Stockholders
248.00M-3.44B-1.01B-2.96B550.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.74B2.31B3.35B3.37B3.28B
Total Assets
8.25B11.29B16.39B16.82B18.13B
Total Debt
2.81B5.48B5.88B5.85B5.09B
Net Debt
1.07B3.18B2.54B2.48B1.80B
Total Liabilities
7.45B11.23B12.59B12.38B11.26B
Stockholders Equity
799.00M55.00M3.79B4.44B6.86B
Cash FlowFree Cash Flow
-1.85B-618.00M147.00M84.00M868.00M
Operating Cash Flow
-1.40B-413.00M398.00M356.00M1.19B
Investing Cash Flow
-203.00M213.00M-245.00M-658.00M618.00M
Financing Cash Flow
1.02B-622.00M-281.00M325.00M-835.00M

Atos SE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$11.41B10.19-7.05%2.95%7.46%-10.52%
FRATO
34
Underperform
€691.18M0.0158.08%-10.44%49.00%
€25.41B15.1415.03%2.29%
€3.93B15.6116.26%2.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:ATO
Atos SE
36.17
-121.33
-77.04%
GB:0HAZ
Capgemini SE
147.90
-56.27
-27.56%
GB:0NJQ
Sopra Steria
192.50
-28.97
-13.08%

Atos SE Corporate Events

Atos Secures £150 Million Contract with DEFRA for Digital Transformation
Mar 26, 2025

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.

Atos Powers Digital Transformation at Special Olympics World Winter Games Turin 2025
Mar 20, 2025

Atos has successfully delivered critical IT services for the Special Olympics World Winter Games Turin 2025, enhancing the event’s digital experience and supporting the participation of athletes with intellectual disabilities. The partnership with Special Olympics International underscores Atos’ commitment to digital transformation in sports, aiming to empower athletes through advanced technologies and ensure seamless operations during major sporting events.

Atos and Venator Collaborate on Carbon Footprint Platform Implementation
Mar 12, 2025

Atos Belgium, through its Eviden business group, has successfully implemented the Product Carbon Footprint (PCF) Platform at Venator, a global chemical manufacturer. This platform automates the calculation of carbon footprints for Venator’s products, integrating seamlessly with their IT systems and providing transparent and comparable data. This collaboration exemplifies the use of digital technology in reducing greenhouse gas emissions in the chemical industry, supporting sustainability goals and empowering customers to make informed decisions.

Eviden and Supermicro Collaborate to Boost Enterprise AI
Mar 11, 2025

Eviden, a business of the Atos Group, has announced a strategic collaboration with Supermicro to distribute the AI SuperCluster with NVIDIA GB200 NVL72 solutions across Europe, India, the Middle East, and South America. This partnership aims to enhance enterprise AI capabilities by leveraging Eviden’s extensive customer network and expertise in deploying large-scale AI systems, while Supermicro seeks to expand its market presence. The collaboration is part of a broader strategy to drive digital transformation and deliver innovative AI solutions, positioning both companies as leaders in the enterprise AI market.

Atos and Esri Partner to Advance Digital Twins Market
Mar 4, 2025

Atos and Esri have announced a strategic partnership to enhance their offerings in the digital twins market for territory and infrastructure applications. This collaboration combines Atos’s expertise in digital technologies and AI with Esri’s GIS capabilities to create powerful new tools for managing complex location-based information. The partnership aims to expand service portfolios and open new opportunities in sectors such as public and private sectors, defense, and emergency response. By leveraging their combined strengths, Atos and Esri aim to provide advanced solutions for climate risk management, natural resource monitoring, and geospatial identification, benefiting public authorities and industries alike.

Eviden Unveils Advanced BullSequana SH Servers for AI and Critical Applications
Feb 24, 2025

Eviden has launched a new generation of BullSequana SH servers, featuring the latest Intel® Xeon® 6 processors, designed to enhance performance and scalability for AI and critical applications. These servers integrate eco-efficient technologies, including Direct Liquid Cooling, to improve energy efficiency and reduce carbon emissions, positioning Eviden as a forward-thinking leader in enterprise server solutions.

Atos Wins Major Contract to Secure Healthcare IT Systems
Feb 24, 2025

Atos has secured a four-year contract worth up to 80 million euros from the Hospital IT Purchasing Center (CAIH) to enhance information systems security and personal data protection for its 2,500 members. This initiative supports the CaRE program aimed at improving cybersecurity resilience in healthcare. Atos will provide comprehensive cybersecurity services, including systems security audits, cyber crisis exercises, and GDPR maturity audits, reflecting its longstanding partnership with public health administrations and its capabilities in cybersecurity and personal data protection.

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.