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AIF

Altus Group TSX:AIF Stock Report

Last Price

CA$52.45

Market Cap

CA$2.3b

7D

-0.2%

1Y

-12.0%

Updated

06 Aug, 2022

Data

Company Financials +
AIF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends2/6

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.

Altus Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Altus Group
Historical stock prices
Current Share PriceCA$52.45
52 Week HighCA$72.33
52 Week LowCA$41.27
Beta0.86
1 Month Change11.74%
3 Month Change13.65%
1 Year Change-12.04%
3 Year Change39.87%
5 Year Change65.04%
Change since IPO411.71%

Recent News & Updates

May 31
Here's Why Altus Group (TSE:AIF) Can Manage Its Debt Responsibly

Here's Why Altus Group (TSE:AIF) Can Manage Its Debt Responsibly

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

Shareholder Returns

AIFCA Real EstateCA Market
7D-0.2%0.4%-0.8%
1Y-12.0%-12.0%-2.0%

Return vs Industry: AIF matched the Canadian Real Estate industry which returned -12% over the past year.

Return vs Market: AIF underperformed the Canadian Market which returned -1.9% over the past year.

Price Volatility

Is AIF's price volatile compared to industry and market?
AIF volatility
AIF Average Weekly Movement4.5%
Real Estate Industry Average Movement6.0%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.4%

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

FoundedEmployeesCEOWebsite
20052,600Jim Hannonhttps://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 CapCA$2.33b
Earnings (TTM)CA$11.53m
Revenue (TTM)CA$655.81m

202.4x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIF income statement (TTM)
RevenueCA$655.81m
Cost of RevenueCA$425.20m
Gross ProfitCA$230.61m
Other ExpensesCA$219.08m
EarningsCA$11.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)0.26
Gross Margin35.16%
Net Profit Margin1.76%
Debt/Equity Ratio55.0%

How did AIF perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

222%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AIF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AIF?

Other financial metrics that can be useful for relative valuation.

AIF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.1x
Enterprise Value/EBITDA30.8x
PEG Ratio2.2x

Price to Sales Ratio vs Peers

How does AIF's PS Ratio compare to its peers?

AIF PS Ratio vs Peers
The above table shows the PS ratio for AIF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.5x
CIGI Colliers International Group
1.2x7.4%CA$6.9b
FSV FirstService
1.7x7.5%CA$7.5b
REAL Real Matters
0.8x6.0%CA$425.2m
ISV Information Services
2.2x4.6%CA$397.8m
AIF Altus Group
3.6x8.4%CA$2.3b

Price-To-Sales vs Peers: AIF is expensive based on its Price-To-Sales Ratio (3.6x) compared to the peer average (1.5x).


Price to Earnings Ratio vs Industry

How does AIF's PE Ratio compare vs other companies in the CA Real Estate Industry?

Price-To-Sales vs Industry: AIF is good value based on its Price-To-Sales Ratio (3.6x) compared to the Canadian Real Estate industry average (4.2x)


Price to Sales Ratio vs Fair Ratio

What is AIF's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AIF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.6x
Fair PS Ratio2.7x

Price-To-Sales vs Fair Ratio: AIF is expensive based on its Price-To-Sales Ratio (3.6x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).


Share Price vs Fair Value

What is the Fair Price of AIF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AIF (CA$52.45) is trading below our estimate of fair value (CA$83.35)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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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 (7.6% per year).

High Growth Earnings: AIF's 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% 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


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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 (41.1%).


Return on Equity

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


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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


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AIF's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: AIF's dividend (1.14%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).


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.


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Management

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

4.6yrs

Average management tenure


CEO

Jim Hannon

0.33

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 ($USD1.10M) is below average for companies of similar size in the Canadian market ($USD2.22M).

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 (4.6 years average tenure).


Board Members

Experienced Board: AIF's board of directors are considered experienced (4.7 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 7.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Altus Group Limited
  • Ticker: AIF
  • Exchange: TSX
  • Founded: 2005
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Implied Market Cap: CA$2.334b
  • Shares outstanding: 44.49m
  • Website: https://www.altusgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.