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ALX

Atlas ArteriaASX:ALX Stock Report

Market Cap

AU$6.1b

7D

-1.1%

1Y

7.2%

Updated

26 Oct, 2021

Data

Company Financials +
ALX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends1/6

ALX Overview

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

Atlas Arteria Competitors

Transurban Group

ASX:TCL

AU$42.3b

TotalEnergies

ENXTPA:TTE

€115.5b

Allianz

XTRA:ALV

€82.1b

AXA

ENXTPA:CS

€58.4b

Price History & Performance

Summary of all time highs, changes and price drops for Atlas Arteria
Historical stock prices
Current Share PriceAU$6.38
52 Week HighAU$5.39
52 Week LowAU$7.07
Beta0.95
1 Month Change-2.45%
3 Month Change2.90%
1 Year Change7.23%
3 Year Change-6.59%
5 Year Change38.70%
Change since IPO937.40%

Recent News & Updates

Aug 10
Is There An Opportunity With Atlas Arteria Limited's (ASX:ALX) 43% Undervaluation?

Is There An Opportunity With Atlas Arteria Limited's (ASX:ALX) 43% Undervaluation?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Atlas Arteria Limited...

May 31
Is Atlas Arteria (ASX:ALX) Using Too Much Debt?

Is Atlas Arteria (ASX:ALX) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Apr 14
Is There An Opportunity With Atlas Arteria Limited's (ASX:ALX) 48% Undervaluation?

Is There An Opportunity With Atlas Arteria Limited's (ASX:ALX) 48% Undervaluation?

How far off is Atlas Arteria Limited ( ASX:ALX ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

ALXAU InfrastructureAU Market
7D-1.1%-0.6%0.4%
1Y7.2%11.1%24.3%

Return vs Industry: ALX underperformed the Australian Infrastructure industry which returned 11.6% over the past year.

Return vs Market: ALX underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ALX's price volatile compared to industry and market?
ALX volatility
ALX Beta0.95
Industry Beta0.68
Market Beta1

Stable Share Price: ALX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009n/aGraeme Bevanshttps://www.atlasarteria.com

Atlas Arteria Limited owns, develops, and operates toll roads. It holds a 13.4% interest in 22-kilometer toll road investors partnership II (TRIP II), the concessionaire for Dulles Greenway toll road located in 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 Fundamentals Summary

How do Atlas Arteria's earnings and revenue compare to its market cap?
ALX fundamental statistics
Market CapAU$6.12b
Earnings (TTM)AU$158.32m
Revenue (TTM)AU$90.58m

38.6x

P/E Ratio

67.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALX income statement (TTM)
RevenueAU$90.58m
Cost of RevenueAU$42.81m
Gross ProfitAU$47.77m
Expenses-AU$110.55m
EarningsAU$158.32m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.17
Gross Margin52.74%
Net Profit Margin174.79%
Debt/Equity Ratio43.9%

How did ALX perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

170%

Payout Ratio

Valuation

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

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALX (A$6.38) is trading below our estimate of fair value (A$10.51)

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 (38.6x) compared to the Oceanic Infrastructure industry average (26.7x).

PE vs Market: ALX is poor value based on its PE Ratio (38.6x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: ALX is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ALX's PB Ratio (1.7x) is in line with the AU Infrastructure industry average.


Future Growth

How is Atlas Arteria forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALX's forecast earnings growth (30.6% per year) is above the savings rate (1.9%).

Earnings vs Market: ALX's earnings (30.6% per year) are forecast to grow faster than the Australian market (12.4% per year).

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

Revenue vs Market: ALX's revenue (16.2% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ALX's revenue (16.2% 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 (13.3%).


Past Performance

How has Atlas Arteria performed over the past 5 years?

-45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALX has a large one-off loss of A$42.5M impacting its June 30 2021 financial results.

Growing Profit Margin: ALX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ALX's earnings have declined by 45.3% per year over the past 5 years.

Accelerating Growth: ALX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Infrastructure industry (22.2%).


Return on Equity

High ROE: ALX's Return on Equity (3.9%) is considered low.


Financial Health

How is Atlas Arteria's financial position?


Financial Position Analysis

Short Term Liabilities: ALX's short term assets (A$202.7M) exceed its short term liabilities (A$102.2M).

Long Term Liabilities: ALX's short term assets (A$202.7M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: ALX's debt to equity ratio (43.9%) 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 (2.3%).

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


Balance Sheet


Dividend

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

4.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALX's dividend (4.86%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: ALX's dividend (4.86%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: ALX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ALX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (170.1%), ALX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALX's dividends in 3 years are not forecast to be well covered by earnings (91.4% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Graeme Bevans (63 yo)

2.5yrs

Tenure

AU$2,368,356

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 ($USD1.78M) is about average for companies of similar size in the Australian market ($USD1.79M).

Compensation vs Earnings: Graeme's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALX's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: ALX's board of directors are not considered experienced ( 2.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Atlas Arteria Limited's 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$6.119b
  • Shares outstanding: 959.02m
  • Website: https://www.atlasarteria.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:25
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.