ASX:ALX

Stock Analysis Report

Executive Summary

Atlas Arteria Limited owns, develops, and operates toll roads.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Atlas Arteria's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

ALX

-8.7%

AU Infrastructure

2.8%

AU Market


1 Year Return

-24.8%

ALX

-17.7%

AU Infrastructure

-16.2%

AU Market

Return vs Industry: ALX underperformed the Australian Infrastructure industry which returned -17.9% over the past year.

Return vs Market: ALX underperformed the Australian Market which returned -19.2% over the past year.


Shareholder returns

ALXIndustryMarket
7 Day-4.7%-8.7%2.8%
30 Day-31.4%-26.7%-15.2%
90 Day-34.4%-28.6%-23.4%
1 Year-22.1%-24.8%-14.6%-17.7%-12.4%-16.2%
3 Year14.9%1.7%7.1%-6.7%-0.2%-13.9%
5 Year84.9%50.4%39.6%11.7%11.5%-13.6%

Price Volatility Vs. Market

How volatile is Atlas Arteria's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atlas Arteria undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALX (A$5) is trading below our estimate of fair value (A$33.6)

Significantly Below Fair Value: ALX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALX is poor value based on its PE Ratio (204.4x) compared to the Infrastructure industry average (31.6x).

PE vs Market: ALX is poor value based on its PE Ratio (204.4x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ALX is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: ALX is overvalued based on its PB Ratio (1.3x) compared to the AU Infrastructure industry average (1.2x).


Next Steps

Future Growth

How is Atlas Arteria forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

52.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALX's forecast earnings growth (52.5% per year) is above the savings rate (1.1%).

Earnings vs Market: ALX's earnings (52.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALX's revenue (3.3% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: ALX's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALX's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Atlas Arteria performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALX has a large one-off loss of A$66.0M impacting its December 31 2019 financial results.

Growing Profit Margin: ALX's current net profit margins (9.7%) are lower than last year (57.9%).


Past Earnings Growth Analysis

Earnings Trend: ALX has become profitable over the past 5 years, growing earnings by 3.3% per year.

Accelerating Growth: ALX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALX had negative earnings growth (-77.7%) over the past year, making it difficult to compare to the Infrastructure industry average (-14.8%).


Return on Equity

High ROE: ALX's Return on Equity (-0.3%) is considered low.


Next Steps

Financial Health

How is Atlas Arteria's financial position?


Financial Position Analysis

Short Term Liabilities: ALX's short term assets (A$1.6B) exceed its short term liabilities (A$104.9M).

Long Term Liabilities: ALX's short term assets (A$1.6B) do not cover its long term liabilities (A$2.2B).


Debt to Equity History and Analysis

Debt Level: ALX's debt to equity ratio (64.4%) is considered high.

Reducing Debt: Insufficient data to determine if ALX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ALX's debt is not well covered by operating cash flow (3.5%).

Interest Coverage: Insufficient data to determine if ALX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Atlas Arteria's current dividend yield, its reliability and sustainability?

6.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ALX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ALX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Graeme Bevans (61yo)

1

Tenure

AU$2,747,183

Compensation

Mr. Graeme Francis Bevans serves as Managing Director, Chief Executive Officer and Director at Atlas Arteria Limited since April 1, 2019. Mr. Bevans was a Partner at Alinda Capital Partners LLC since 2010. ...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD1.65M) is below average for companies of similar size in the Australian market ($USD2.52M).

Compensation vs Earnings: Graeme's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Graeme Bevans
MD, CEO & Director1yrAU$2.75m0.011% A$514.8k
Nadine Lennie
Chief Financial Officer1yrAU$1.15m0.0024% A$106.0k
Vincent Portal-Barrault
Chief Operating Officer1yrAU$1.10m0.00064% A$28.7k
Phillipa Chen
Head of Investor Relationsno datano datano data
Clayton McCormack
Company Secretary & General Counsel1yrno datano data
Navleen Prasad
Public Affairs Managerno datano datano data

1.0yrs

Average Tenure

Experienced Management: ALX's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Graeme Bevans
MD, CEO & Director1yrAU$2.75m0.011% A$514.8k
Nora Scheinkestel
Independent Non-Executive Chairman5yrsAU$290.00k0.012% A$530.5k
Jean-Georges Malcor
Independent Non-Executive Director1.42yrsAU$185.00k0.0029% A$128.9k
David Bartholomew
Independent Non Executive Director1.5yrsAU$187.50k0.0023% A$104.7k
Debra Goodin
Independent Non-Executive Director2.58yrsAU$207.50k0.0032% A$143.3k

1.5yrs

Average Tenure

59yo

Average Age

Experienced Board: ALX's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ALX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Atlas Arteria Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlas Arteria Limited
  • Ticker: ALX
  • Exchange: ASX
  • Founded: 2009
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: AU$4.492b
  • Shares outstanding: 879.02m
  • Website: https://www.atlasarteria.com

Location

  • Atlas Arteria Limited
  • 141 Flinders Lane
  • Level 5
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALXASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJan 2010
M82DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJan 2010
MAQA.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJan 2010
ALXCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJan 2010

Biography

Atlas Arteria Limited owns, develops, and operates toll roads. It holds a 13.4% interest in TRIP II, the concessionaire for Dulles Greenway toll road located in northern Virginia, the United States. The company was formerly known as Macquarie Atlas Roads Limited and changed its name to Atlas Arteria Limited in May 2018. Atlas Arteria Limited was incorporated in 2009 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 10:43
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.