ATN International (ATNI) AI Stock Analysis

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ATN International

(NASDAQ:ATNI)

56Neutral

ATN International's stock is characterized by solid technical indicators and a strong dividend yield, but financial performance is hampered by negative net income and profitability issues. The mixed results from the earnings call, with strategic expansions offset by revenue declines and impairment charges, contribute to a moderate overall score. Improvement in cash flows and strategic investments in fiber infrastructure are positive, but the company must address declining revenue and profitability to enhance its stock performance.

ATN International (ATNI) vs. S&P 500 (SPY)

Market Cap

$276.18M

Dividend Yield5.38%

Average Volume (3M)83.53K

Price to Earnings (P/E)―

Beta (1Y)0.85

Revenue Growth-4.35%

EPS Growth-78.64%

CountryUS

Employees2,300

SectorCommunication Services

Sector Strength98

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-2.11

Shares Outstanding15,481,207

10 Day Avg. Volume59,348

30 Day Avg. Volume83,526

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.47

Price to Cash Flow (P/CF)2.30

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 Target

$22.00

Price Target Upside23.39% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

ATN International Business Overview & Revenue Model

Company DescriptionATN International, Inc. (ATNI) is a telecommunications and renewable energy company that operates in various sectors, including wireless and wireline communication services, and renewable energy solutions. The company primarily serves markets in the United States, Caribbean, and other international locations, offering a range of services such as mobile and fixed-line broadband, voice, and data communications. Additionally, ATNI is involved in developing and managing solar power and renewable energy projects, expanding its footprint in the sustainable energy sector.

How the Company Makes MoneyATN International generates revenue through multiple streams, primarily centered around its telecommunications and renewable energy operations. In the telecommunications sector, the company earns money by providing wireless and wireline communication services to consumers, businesses, and government entities. This includes revenue from mobile and fixed-line broadband subscriptions, voice and data service charges, and related telecommunications services. In the renewable energy sector, ATNI generates income by developing, operating, and managing solar power projects, selling generated power to utility companies, and leveraging government incentives related to renewable energy initiatives. The company's strategic partnerships with local and international entities further enhance its revenue potential by expanding market reach and service offerings.

ATN International Financial Statement Overview

Summary

ATN International shows solid gross profitability but struggles with operating efficiency and net profitability, as evidenced by negative EBIT and net income. The balance sheet is stable with low leverage, though profitability remains an issue. Cash flows have improved, showing better cash management, but the negative net income continues to weigh on financial health.

Income Statement

Neutral

ATN International's recent income statement shows a challenging financial position, with a negative net income of -$50.97 million in the latest year. The gross profit margin stands out at 99.47%, indicating strong core profitability, but the EBIT margin is negative at -0.11%, showing operational challenges. Revenue growth from the previous year was negative at -4.35%, highlighting declining sales. The net profit margin is also negative, reflecting ongoing profitability issues.

Balance Sheet

Neutral

The company's balance sheet shows a debt-to-equity ratio of 0.21, indicating a relatively low leverage. The equity ratio is 28.35%, suggesting a modest proportion of assets financed by equity. However, return on equity is negative at -10.41%, reflecting unprofitable operations. Overall, the balance sheet appears stable but lacks profitability.

Cash Flow

Neutral

The cash flow statement reveals positive operating cash flow of $129.21 million, which is a strength. The free cash flow growth rate is significant, transitioning from negative to positive, indicating improved cash generation. However, the free cash flow to net income ratio is unfavorable due to negative net income. The operating cash flow to net income ratio is not meaningful given the negative net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
729.08M	762.22M	725.75M	602.71M	455.44M
	Gross Profit
725.21M	277.88M	397.09M	317.33M	259.71M
	EBIT
-795.00K	13.18M	21.37M	20.36M	28.23M
	EBITDA
144.82M	169.41M	160.51M	97.43M	93.75M
	Net Income Common Stockholders
-26.43M	-14.54M	-7.58M	-20.81M	-708.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.69M	49.52M	54.66M	79.60M	103.92M
	Total Assets
1.73B	1.78B	1.71B	1.61B	1.08B
	Total Debt
101.88M	655.02M	566.02M	474.46M	136.28M
	Net Debt
28.49M	605.80M	511.36M	394.86M	32.35M
	Total Liabilities
1.06B	1.06B	938.57M	833.41M	329.38M
	Stockholders Equity
489.49M	541.07M	580.81M	601.25M	645.65M
Cash Flow		Free Cash Flow
16.97M	-51.66M	-58.27M	-25.59M	-9.44M
	Operating Cash Flow
127.92M	111.63M	102.91M	80.55M	86.28M
	Investing Cash Flow
-103.75M	-165.11M	-167.25M	-426.58M	-70.20M
	Financing Cash Flow
2.91M	55.92M	43.36M	321.73M	-73.37M

ATN International Technical Analysis

Technical Analysis Sentiment

Negative

Last Price17.83

Price Trends

50DMA

18.54

Negative

100DMA

17.96

Negative

200DMA

21.98

Negative

Market Momentum

MACD

0.85

Positive

RSI

51.34

Neutral

STOCH

12.08

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATNI, the sentiment is Negative. The current price of 17.83 is below the 20-day moving average (MA) of 20.90, below the 50-day MA of 18.54, and below the 200-day MA of 21.98, indicating a bearish trend. The MACD of 0.85 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATNI.

ATN International Risk Analysis

ATN International disclosed 21 risk factors in its most recent earnings report. ATN International reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

ATN International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PERI	67 Neutral	$331.92M	27.18	1.75%	―	-32.95%	-89.11%
SIFY	65 Neutral	$291.05M	―	0.20%	―	12.76%	―
OOMA	64 Neutral	$329.54M	―	-8.45%	―	8.50%	-743.51%
TRVG	60 Neutral	$268.57M	―	-11.75%	―	-4.88%	85.67%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
ATNI	56 Neutral	$276.18M	―	-5.13%	5.38%	-4.35%	-78.64%
DOYU	49 Neutral	$198.58M	―	-5.43%	―	-24.10%	-953.50%

* Communication Services Sector Average

Performance Comparison

ATNI

ATN International

17.83

-8.31

-31.79%

PERI

Perion Network

7.91

-5.19

-39.62%

SIFY

Sify Technologies

3.88

-3.92

-50.26%

OOMA

Ooma

12.11

4.52

59.55%

TRVG

trivago

3.82

1.03

36.92%

DOYU

DouYu International Holdings

6.29

4.90

352.52%

ATN International Earnings Call Summary

Earnings Call Date: Mar 4, 2025 | % Change Since: 6.19% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Neutral

The call highlighted successful expansion in fiber infrastructure and international segment growth, supported by government funding. However, significant revenue decline in the US telecom segment and a substantial goodwill impairment charge posed challenges. The overall sentiment is mixed with notable progress in strategic areas but offset by financial downturns in key segments.

Highlights

Expansion of Fiber Infrastructure

Expanded fiber route miles by 32% and doubled broadband homes passed by high-speed services, increasing high-speed capable customers by 44%.

International Segment Growth

International segment adjusted EBITDA grew by 10% year-over-year, with business service revenue increasing by 6% and business mobility revenue increasing by 21%.

Increased Cash Flow from Operations

Cash flow from operations increased by 16% year-over-year, emphasizing financial resilience and capital efficiency.

Significant Government Funding

Secured more than $370 million in government grants to support fiber deployments, reinforcing ATN's role as a key provider of broadband infrastructure.

Lowlights

Decline in US Telecom Revenue

Fourth-quarter US telecom segment revenue declined by 18% year-over-year, impacted by the conclusion of the Emergency Connectivity Fund and lower legacy wholesale roaming revenues.

Overall Revenue Decline

Total company revenue for the fourth quarter was $680.5 million, down 9% compared to the same period in 2023, and full-year revenue decreased by 4% from 2023.

Goodwill Impairment Charge

A $35.3 million goodwill impairment charge contributed to a full-year net loss of $26.4 million.

Prepaid Subscriber Decline

International prepaid subscribers dropped off primarily due to competition, affecting the largest market in Guyana.

Company Guidance

During the ATN International, Inc. Q4 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic focuses. For 2024, ATN reported full-year revenue of $729 million and an adjusted EBITDA of $184 million, with a 16% year-over-year increase in cash flow from operations. The international segment grew by nearly 2% in revenue to $377.5 million, with adjusted EBITDA growing 10% year-over-year, and business mobility revenue increasing by 21%. In 2025, ATN aims to stabilize its US segment and continue expanding its international margins, expecting full-year revenue to be in line with 2024, excluding construction revenues, and adjusted EBITDA to remain flat. Capital expenditures are projected between $90 and $100 million, net of reimbursements, as the company leverages its substantial $370 million in government grants to support fiber deployments. The net debt ratio is expected to slightly improve from the 2024 level. ATN plans to focus on long-term growth through investments in fiber infrastructure and enterprise and carrier solutions, optimizing operations, and leveraging government grants to enhance free cash flow and shareholder value.

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.