ASX:ALX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Reasonable 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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ALX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

ALX

-3.1%

AU Infrastructure

-1.1%

AU Market


1 Year Return

-12.7%

ALX

-6.4%

AU Infrastructure

1.7%

AU Market

Return vs Industry: ALX underperformed the Australian Infrastructure industry which returned -8% over the past year.

Return vs Market: ALX underperformed the Australian Market which returned 0% over the past year.


Shareholder returns

ALXIndustryMarket
7 Day-3.4%-3.1%-1.1%
30 Day16.2%7.5%10.8%
90 Day-2.4%-1.3%8.1%
1 Year-11.1%-12.7%-3.3%-6.4%5.2%1.7%
3 Year22.1%9.0%27.8%12.1%24.1%8.7%
5 Year86.6%53.3%72.8%39.4%58.8%26.5%

Long-Term 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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALX (A$6.53) is trading below our estimate of fair value (A$10.56)

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


Price To Earnings Ratio

PE vs Industry: ALX is unprofitable, so we can't compare its PE Ratio to the XO Infrastructure industry average.

PE vs Market: ALX is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALX's PB Ratio (1.6x) is in line with the AU Infrastructure industry average.


Next Steps

Future Growth

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

67.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: ALX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ALX's is expected to become profitable in the next 3 years.

Revenue vs Market: ALX's revenue (10.2% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: ALX's revenue (10.2% 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 (9.8%).


Next Steps

Past Performance

How has Atlas Arteria performed over the past 5 years?

-20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALX is currently unprofitable.

Growing Profit Margin: ALX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALX is unprofitable, and losses have increased over the past 5 years at a rate of 20.3% per year.

Accelerating Growth: Unable to compare ALX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALX is unprofitable, making it difficult to compare its past year earnings growth to the Infrastructure industry (-22.4%).


Return on Equity

High ROE: ALX has a negative Return on Equity (-1.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Atlas Arteria's financial position?


Financial Position Analysis

Short Term Liabilities: ALX's short term assets (A$194.6M) exceed its short term liabilities (A$84.4M).

Long Term Liabilities: ALX's short term assets (A$194.6M) do not cover its long term liabilities (A$1.7B).


Debt to Equity History and Analysis

Debt Level: ALX's debt to equity ratio (43.7%) 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 (3.9%).

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 current dividend yield, its reliability and sustainability?

4.83%

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 recent payouts.

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

1.7yrs

Average management tenure


CEO

Graeme Bevans (62 yo)

1.67yrs

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 ($USD2.02M) is about average for companies of similar size in the Australian market ($USD1.88M).

Compensation vs Earnings: Graeme's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Graeme Bevans
MD, CEO & Director1.67yrsAU$2.75m0.016%
A$ 1.0m
Nadine Lennie
Chief Financial Officer1.67yrsAU$1.15m0.0022%
A$ 136.1k
Vincent Portal-Barrault
Chief Operating Officer1.67yrsAU$1.10m0.00059%
A$ 37.2k
Phillipa Chen
Head of Investor Relationsno datano datano data
Clayton McCormack
Company Secretary & General Counsel1.67yrsno datano data
Navleen Prasad
Public Affairs Managerno datano datano data

1.7yrs

Average Tenure

Experienced Management: ALX's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Graeme Bevans
MD, CEO & Director1.67yrsAU$2.75m0.016%
A$ 1.0m
Jean-Georges Malcor
Independent Non-Executive Director2.08yrsAU$185.00k0.0031%
A$ 197.8k
David Bartholomew
Independent Non Executive Director2.17yrsAU$187.50k0.0026%
A$ 165.7k
Debra Goodin
Independent Chairman of the Board0.083yrAU$207.50k0.0034%
A$ 216.1k

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ALX's board of directors are not considered experienced ( 1.9 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 40.3%.


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$6.301b
  • Shares outstanding: 959.02m
  • 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 co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 07:07
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.