investorscraft@gmail.com

Stock Analysis & ValuationATOSS Software AG (0N66.L)

Professional Stock Screener
Previous Close
£96.10
Sector Valuation Confidence Level
Low
Valuation methodValue, £Upside, %
Artificial intelligence (AI)69.90-27
Intrinsic value (DCF)51.77-46
Graham-Dodd Methodn/a
Graham Formula51.20-47

Strategic Investment Analysis

Company Overview

ATOSS Software AG is a leading provider of workforce management software solutions, headquartered in Munich, Germany. Founded in 1987, the company specializes in developing and selling innovative software for time and attendance management, workforce scheduling, and resource planning. Its flagship products include Crewmeister, ATOSS Time Control, and the ATOSS Staff Efficiency Suite, catering to small-to-medium businesses as well as large decentralized organizations and multinational corporations. ATOSS serves diverse industries such as manufacturing, healthcare, retail, hospitality, logistics, and services, helping businesses optimize labor efficiency and compliance. With a strong presence in Germany, Austria, and Switzerland, as well as international expansion, ATOSS has established itself as a key player in the workforce management software sector. The company's recurring revenue model, driven by software licenses and implementation services, ensures stable cash flows and long-term customer relationships.

Investment Summary

ATOSS Software AG presents an attractive investment opportunity due to its strong market position in workforce management software, high profitability (net margin ~26.6%), and consistent cash flow generation (operating cash flow of €59.5M in the latest period). The company operates in a growing industry as businesses increasingly adopt digital workforce solutions for efficiency and compliance. However, risks include competition from larger enterprise software providers, reliance on European markets (~80% of revenue), and potential economic downturns affecting IT spending. The stock's beta of 1.259 suggests higher volatility than the market, but its solid balance sheet (€82.7M cash vs. €6.6M debt) and dividend yield (~1.5%) provide downside protection.

Competitive Analysis

ATOSS Software AG competes in the workforce management (WFM) software market, differentiating itself through specialized, industry-tailored solutions for mid-sized and large enterprises. Its competitive advantage lies in deep domain expertise, particularly in German-speaking markets, where it holds a strong reputation for compliance with local labor laws. The company's software is highly configurable, supporting complex scheduling needs in industries like healthcare and manufacturing. Unlike generic HR software suites, ATOSS focuses exclusively on WFM, allowing for greater functionality in time tracking, demand forecasting, and shift planning. However, it faces competition from both niche WFM providers and larger HR tech platforms expanding into workforce management. ATOSS's relatively small scale (€170.6M revenue) limits its R&D budget compared to global players, but its asset-light model (high gross margins ~80%) enables strong profitability. The company's growth strategy relies on upselling additional modules to existing customers and expanding in adjacent European markets, though it lacks the global footprint of some competitors.

Major Competitors

  • Kone Oyj (KNEBV.HE): Kone's workforce solutions division competes in enterprise scheduling, but with less specialization than ATOSS. Strengths include global reach and IoT integration in smart buildings. Weaknesses include being a minor segment within a larger elevator business.
  • SAP SE (SAP.DE): SAP's SuccessFactors includes WFM modules, competing for large multinational clients. Strengths: Integrated HR suite, global scale. Weaknesses: Less specialized functionality for complex scheduling compared to ATOSS's dedicated solutions.
  • Workday, Inc. (WDAY): Workday offers competing workforce management tools as part of its cloud HCM platform. Strengths: Strong in North America, AI-powered forecasting. Weaknesses: Less focus on European labor law compliance compared to ATOSS.
  • Zebra Technologies (ZBRA): Zebra's workforce optimization solutions compete in retail/logistics. Strengths: Hardware-software integration. Weaknesses: Narrower industry focus than ATOSS's broad vertical coverage.
  • NICE Ltd. (NICE.TA): NICE's workforce optimization tools compete in call center management. Strengths: AI-driven analytics. Weaknesses: Limited functionality outside contact center environments compared to ATOSS's general workforce solutions.
HomeMenuAccount