TSX:AIF

Stock Analysis Report

Executive Summary

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate (CRE) industry in Canada, the United States, Europe, and the Asia Pacific.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Altus Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.8%

AIF

-2.0%

CA Real Estate

-4.8%

CA Market


1 Year Return

78.5%

AIF

21.3%

CA Real Estate

0.1%

CA Market

Return vs Industry: AIF exceeded the Canadian Real Estate industry which returned 20.5% over the past year.

Return vs Market: AIF exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

AIFIndustryMarket
7 Day5.8%-2.0%-4.8%
30 Day7.8%2.4%-3.2%
90 Day27.5%7.3%-1.0%
1 Year81.8%78.5%23.2%21.3%3.3%0.1%
3 Year69.2%59.5%48.5%40.2%12.9%2.7%
5 Year150.6%123.4%86.9%47.8%29.2%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Altus Group undervalued compared to its fair value and its price relative to the market?

101.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIF (CA$45.7) is trading above our estimate of fair value (CA$36.32)

Significantly Below Fair Value: AIF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIF is poor value based on its PE Ratio (99.1x) compared to the Real Estate industry average (13.4x).

PE vs Market: AIF is poor value based on its PE Ratio (99.1x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: AIF is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AIF is overvalued based on its PB Ratio (5.1x) compared to the CA Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Altus Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIF's forecast earnings growth (46.5% per year) is above the savings rate (1.4%).

Earnings vs Market: AIF's earnings (46.5% per year) are forecast to grow faster than the Canadian market (11.2% per year).

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

Revenue vs Market: AIF's revenue (6% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: AIF's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIF's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Altus Group performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIF has a large one-off loss of CA$9.6M impacting its December 31 2019 financial results.

Growing Profit Margin: AIF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AIF's earnings have declined by -0.2% per year over the past 5 years.

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

Earnings vs Industry: AIF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (-22.9%).


Return on Equity

High ROE: AIF's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Altus Group's financial position?


Financial Position Analysis

Short Term Liabilities: AIF's short term assets (CA$246.1M) do not cover its short term liabilities (CA$283.6M).

Long Term Liabilities: AIF's short term assets (CA$246.1M) exceed its long term liabilities (CA$91.9M).


Debt to Equity History and Analysis

Debt Level: AIF's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: AIF's debt to equity ratio has reduced from 62.4% to 38.4% over the past 5 years.

Debt Coverage: AIF's debt is well covered by operating cash flow (37.9%).

Interest Coverage: AIF's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: AIF has a low level of unsold assets or inventory.

Debt Coverage by Assets: AIF's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Altus Group's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIF's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: AIF's dividend (1.31%) is low compared to the top 25% of dividend payers in the Canadian market (5.7%).


Stability and Growth of Payments

Stable Dividend: AIF's dividends per share have been stable in the past 10 years.

Growing Dividend: AIF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (130.1%), AIF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIF's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Bob Courteau (63yo)

7.4yrs

Tenure

CA$2,378,363

Compensation

Mr. Robert G. Courteau, also known as Bob, has been the Chief Executive Officer of Altus Group Limited since September 24, 2012. Mr. Courteau has been the President of Altus Analytics Solutions at Altus Gr ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD1.79M) is about average for companies of similar size in the Canadian market ($USD2.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Courteau
CEO & Director7.4yrsCA$2.38m0.37% CA$7.0m
Angelo Bartolini
Chief Financial Officer9.8yrsCA$713.78k0.056% CA$1.0m
Edward Orlik
Chief Information Officer0yrsno data0.0046% CA$86.2k
Camilla Bartosiewicz
Vice President of Investor Relations0yrsno datano data
Liana Turrin
General Counsel & Corporate Secretary8.4yrsno data0.051% CA$945.9k
Jeff Hayward
Vice President of Global Marketing & Communications0yrsno datano data
Walter Turney
Global Head of Sales2.1yrsno datano data
Trish Ball
Chief Human Resources Officer2.9yrsno datano data
Phil Tily
Head of Performance Analytics & Senior VP of Analytics Advisory Business Unit3.3yrsno datano data
Michael Crook
Senior Vice President of Product Management0yrsno datano data

5.4yrs

Average Tenure

Experienced Management: AIF's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Courteau
CEO & Director7.4yrsCA$2.38m0.37% CA$7.0m
Colin Dyer
Independent Director0.8yrsno datano data
Raymond Mikulich
Independent Chairman4.8yrsCA$322.12k0.021% CA$388.1k
Thomas Gaffney
Independent Director7.7yrsCA$180.87kno data
Angela Brown
Independent Director3.7yrsCA$183.51kno data
Janet Woodruff
Independent Director4.8yrsCA$195.53kno data
Diane MacDiarmid
Independent Director7.7yrsCA$177.09k0.0025% CA$47.0k
Anthony Long
Independent Director0.8yrsno datano data

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: AIF's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Altus Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altus Group Limited
  • Ticker: AIF
  • Exchange: TSX
  • Founded:
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: CA$1.873b
  • Shares outstanding: 39.84m
  • Website: https://www.altusgroup.com

Number of Employees


Location

  • Altus Group Limited
  • 33 Yonge Street
  • Suite 500
  • Toronto
  • Ontario
  • M5E 1G4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIFTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2005
ASGT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2005
53UDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2005

Biography

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate (CRE) industry in Canada, the United States, Europe, and the Asia Pacific. It operates in three segments: Altus Analytics, Commercial Real Estate Consulting (CRE Consulting), and Geomatics. The Altus Analytics segment offers ARGUS Enterprise (AE), a software for CRE valuation and portfolio management; ARGUS Developer and ARGUS EstateMaster software for development feasibility analysis; ARGUS API, an application programming interface; ARGUS Voyanta, a cloud-based data management solution; ARGUS Taliance, a cloud-based fund solution for alternative investment firms; and ARGUS Acquire, a cloud-based deal management solution for CRE acquisitions. It also offers data subscription products that provide real estate information on the residential, office, industrial, and investment markets; advisory and managed services; and technology-related services. This segment serves large owners, managers, and investors of CRE asset and funds; service providers; brokers; and developers. The CRE Consulting segment offers real estate property tax services, including assessment reviews, management, and appeals, as well as personal property, and state and local tax advisory services; valuation services, such as appraisals of real estate portfolios and valuation of properties, as well as due diligence, and litigation and economic consulting services; and construction feasibility study, budgeting, cost and loan monitoring, and project management services to owner operators, developers, financial institutions, and CRE asset holders and investors. The Geomatics segment offers various services, including land surveys and mapping to the oil and gas exploration and development sector for setting of property boundaries, route and corridor selection, land settlement, construction developments, and oil field and well-sites. The company is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:47
End of Day Share Price2020/02/26 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.