Fact based stock research
Atea (OB:ATEA)

NO0004822503

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Atea stock research in summary

atea.com

ANALYSIS: With an Obermatt Combined Rank of 83 (better than 83% compared with investment alternatives), Atea (IT Consulting & oth. Services, Norway) shares have much better financial characteristics than comparable stocks. Shares of Atea are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), show above-average growth (Growth Rank of 65) but are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Atea's financial characteristics. As the company Atea's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 91) and above-average growth (Obermatt Growth Rank of 65), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 27) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	91
Growth Rank	65
Safety Rank	27
Combined Rank	83

Country	Norway
Industry	IT Consulting & oth. Services
Index	Dividends Europe
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Atea

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	93	93	91
GROWTH
GROWTH	69	45	37	65
SAFETY
SAFETY	6	14	23	27
SENTIMENT
SENTIMENT	n/a	77	69	^new
360° VIEW
360° VIEW	n/a	67	64	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Atea is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	93	93	91
GROWTH
GROWTH	69	45	37	65
SAFETY
SAFETY	6	14	23	27
COMBINED
COMBINED	50	48	53	83

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Atea the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2024, Atea shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Atea. Price-to-Sales (P/S) is 88, which means that the stock price compared with what market professionals expect for future sales is lower than for 88% of comparable companies, indicating a good value concerning Atea's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 71% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 93 (dividends are expected to be higher than 93% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 61% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Atea to 39. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Atea's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	97	100	93	88
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	75	66	85	71
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	21	45	46	39
DIVIDEND YIELD
DIVIDEND YIELD	100	98	96	93
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	93	93	91

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Atea; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Atea shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Atea. Sales Growth has a rank of 72 which means that currently, professionals expect the company to grow more than 72% of its competitors. Capital Growth is also above 35% of competitors with a rank of 67, and Stock Returns with the rank of 55 is also an outperformance. Only Profit Growth is low with a rank of 35 which means that currently, professionals expect the company to grow its profits less than 65% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Atea is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	44	1	8	72
PROFIT GROWTH
PROFIT GROWTH	n/a	44	36	35
CAPITAL GROWTH
CAPITAL GROWTH	n/a	51	62	67
STOCK RETURNS
STOCK RETURNS	79	85	59	55
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	69	45	37	65

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Atea.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company Atea has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Atea is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Atea. Liquidity is at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 13, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 87% of its competitors. Leverage is also high at a rank of 34, which means that the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), Atea has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	23	27	32	34
REFINANCING
REFINANCING	17	9	15	13
LIQUIDITY
LIQUIDITY	56	56	55	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6	14	23	27

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Atea and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	61	81	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	86	82	^new
MARKET PULSE
MARKET PULSE	n/a	42	31	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	77	69	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Atea.
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