Altus Group (TSX:AIF) - Share price, News & Analysis

AIF fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	2/6

AIF Stock Overview

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

Rewards

Trading at 48.5% below our estimate of its fair value

Earnings are forecast to grow 91.41% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (1.8%) are lower than last year (4.9%)

Shareholders have been diluted in the past year

Altus Group Competitors

Intuit

NasdaqGS:INTU

US$104.0b

CoStar Group

NasdaqGS:CSGP

US$22.6b

AppFolio

NasdaqGM:APPF

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Altus Group
Historical stock prices
Current Share Price	CA$44.51
52 Week High	CA$72.33
52 Week Low	CA$43.49
Beta	0.84
1 Month Change	-12.30%
3 Month Change	-11.74%
1 Year Change	-23.30%
3 Year Change	50.52%
5 Year Change	47.43%
Change since IPO	334.24%

Recent News & Updates

Apr 20

Altus Group Limited's (TSE:AIF) Intrinsic Value Is Potentially 72% Above Its Share Price

How far off is Altus Group Limited ( TSE:AIF ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

	AIF	CA Real Estate	CA Market
7D	0.7%	-0.5%	0.8%
1Y	-23.3%	-1.8%	4.9%

Return vs Industry: AIF underperformed the Canadian Real Estate industry which returned -1.8% over the past year.

Return vs Market: AIF underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is AIF's price volatile compared to industry and market?
AIF volatility
AIF Average Weekly Movement	5.1%
Real Estate Industry Average Movement	5.1%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: AIF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

Founded	Employees	CEO	Website
2005	2,600	Jim Hannon	https://www.altusgroup.com

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate industry in Canada, the United States, Europe, and the Asia Pacific. It operates through Altus Analytics and Commercial Real Estate Consulting (CRE Consulting) segments. The Altus Analytics segment offers ARGUS Enterprise, a commercial property valuation and asset management software; ARGUS Taliance, a real estate fund and alternative investment management software; ARGUS EstateMaster, a property development feasibility and management software; and ARGUS Developer, a real estate development pro forma and management software solution; ARGUS Voyanta, a powerful data aggregation, validation, and reporting software solution; ARGUS Acquire, a real estate acquisition deals and pipeline management software; and ARGUS ValueInsight, a commercial real estate valuation software.

Altus Group Fundamentals Summary

How do Altus Group's earnings and revenue compare to its market cap?
AIF fundamental statistics
Market Cap	CA$1.98b
Earnings (TTM)	CA$11.53m
Revenue (TTM)	CA$655.81m

171.7x

P/E Ratio

3.0x

P/S Ratio

Is AIF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIF income statement (TTM)
Revenue	CA$655.81m
Cost of Revenue	CA$425.20m
Gross Profit	CA$230.61m
Other Expenses	CA$219.08m
Earnings	CA$11.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.26
Gross Margin	35.16%
Net Profit Margin	1.76%
Debt/Equity Ratio	55.0%

How did AIF perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

222%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

48.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AIF (CA$44.51) is trading below our estimate of fair value (CA$86.4)

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

Price To Earnings Ratio

PE vs Industry: AIF is poor value based on its PE Ratio (171.7x) compared to the Canadian Real Estate industry average (6.8x).

PE vs Market: AIF is poor value based on its PE Ratio (171.7x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: AIF is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: AIF is overvalued based on its PB Ratio (3.6x) compared to the CA Real Estate industry average (1x).

Future Growth

How is Altus Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

91.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIF's forecast earnings growth (91.4% per year) is above the savings rate (1.6%).

Earnings vs Market: AIF's earnings (91.4% per year) are forecast to grow faster than the Canadian market (7.5% per year).

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

Revenue vs Market: AIF's revenue (8.4% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: AIF's revenue (8.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if AIF's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Altus Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-30.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AIF has a large one-off loss of CA$23.8M impacting its March 31 2022 financial results.

Growing Profit Margin: AIF's current net profit margins (1.8%) are lower than last year (4.9%).

Past Earnings Growth Analysis

Earnings Trend: AIF's earnings have declined by 30% per year over the past 5 years.

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

Earnings vs Industry: AIF had negative earnings growth (-58.6%) over the past year, making it difficult to compare to the Real Estate industry average (48.2%).

Return on Equity

High ROE: AIF's Return on Equity (2.1%) is considered low.

Financial Health

How is Altus Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AIF's short term assets (CA$268.5M) exceed its short term liabilities (CA$177.8M).

Long Term Liabilities: AIF's short term assets (CA$268.5M) do not cover its long term liabilities (CA$409.5M).

Debt to Equity History and Analysis

Debt Level: AIF's net debt to equity ratio (46.6%) is considered high.

Reducing Debt: AIF's debt to equity ratio has increased from 42.5% to 55% over the past 5 years.

Debt Coverage: AIF's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: AIF's interest payments on its debt are well covered by EBIT (6.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AIF's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: AIF's dividend (1.35%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).

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 not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (221.6%), AIF's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (79.3%), AIF's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Jim Hannon

0.083

Tenure

CA$1,419,052

Compensation

Mr. Jim Hannon is the Chief Executive Officer at Altus Group Limited since April 1, 2022 and served as its President of Altus Analytics Business Segment since December 2020. Mr. Hannon has a proven track r...

CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.11M) is below average for companies of similar size in the Canadian market ($USD2.24M).

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

Leadership Team

Experienced Management: AIF's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: AIF's board of directors are considered experienced (7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: AIF 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 7.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31