ENXTPA:ALO

Stock Analysis Report

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Market Cap

€12.9b

Last Updated

2021/08/04 21:50 UTC

Data Sources

Company Financials +

Executive Summary

Alstom SA offers solutions for rail transport industry in Europe, the Americas, Asia and Pacific, the Middle East, and Africa. More Details


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ALO is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

-5.3%

ALO

-3.0%

FR Machinery

2.7%

FR Market


1 Year Return

-27.5%

ALO

-18.2%

FR Machinery

39.3%

FR Market

Return vs Industry: ALO underperformed the French Machinery industry which returned -18.2% over the past year.

Return vs Market: ALO underperformed the French Market which returned 39.3% over the past year.


Shareholder returns

ALOIndustryMarket
7 Day-5.3%-3.0%2.7%
30 Day-20.8%-16.5%2.7%
90 Day-24.5%-21.1%6.2%
1 Year-21.3%-27.5%-11.9%-18.2%43.2%39.3%
3 Year12.8%-9.6%9.5%-8.8%34.4%21.6%
5 Year100.3%57.8%83.3%50.8%87.9%58.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALO (€34.67) is trading below our estimate of fair value (€51.79)

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


Price To Earnings Ratio

PE vs Industry: ALO is good value based on its PE Ratio (37.9x) compared to the French Machinery industry average (55x).

PE vs Market: ALO is poor value based on its PE Ratio (37.9x) compared to the French market (21.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALO is good value based on its PB Ratio (1.4x) compared to the FR Machinery industry average (1.7x).


Future Growth

How is Alstom forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALO's forecast earnings growth (29.7% per year) is above the savings rate (0.4%).

Earnings vs Market: ALO's earnings (29.7% per year) are forecast to grow faster than the French market (13.1% per year).

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

Revenue vs Market: ALO's revenue (14.2% per year) is forecast to grow faster than the French market (6.3% per year).

High Growth Revenue: ALO's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALO's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Alstom performed over the past 5 years?

50.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALO has a large one-off loss of €134.0M impacting its March 31 2021 financial results.

Growing Profit Margin: ALO's current net profit margins (2.7%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: ALO has become profitable over the past 5 years, growing earnings by 50.3% per year.

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

Earnings vs Industry: ALO had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Machinery industry average (-17%).


Return on Equity

High ROE: ALO's Return on Equity (2.8%) is considered low.


Financial Health

How is Alstom's financial position?


Financial Position Analysis

Short Term Liabilities: ALO's short term assets (€11.5B) do not cover its short term liabilities (€15.4B).

Long Term Liabilities: ALO's short term assets (€11.5B) exceed its long term liabilities (€4.0B).


Debt to Equity History and Analysis

Debt Level: ALO's debt to equity ratio (23.9%) is considered satisfactory.

Reducing Debt: ALO's debt to equity ratio has reduced from 65.4% to 23.9% over the past 5 years.

Debt Coverage: ALO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ALO's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet


Dividend

What is Alstom current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALO's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.29%).

High Dividend: ALO's dividend (0.72%) is low compared to the top 25% of dividend payers in the French market (3.89%).


Stability and Growth of Payments

Stable Dividend: ALO is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: ALO is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALO is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALO's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Henri Poupart-Lafarge (52 yo)

5.5yrs

Tenure

€1,607,634

Compensation

Mr. Henri Poupart-Lafarge serves as Independent Director at Société Générale Société anonyme since May 18, 2021. He has been Chief Executive Officer and Chairman at Alstom Transport Deutschland GmbH since ...


CEO Compensation Analysis

Compensation vs Market: Henri's total compensation ($USD1.90M) is below average for companies of similar size in the French market ($USD3.27M).

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


Leadership Team

Experienced Management: ALO's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: ALO's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 63.9%.


Top Shareholders

Company Information

Alstom SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alstom SA
  • Ticker: ALO
  • Exchange: ENXTPA
  • Founded: 1992
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €12.895b
  • Shares outstanding: 371.94m
  • Website: https://www.alstom.com

Number of Employees


Location

  • Alstom SA
  • 48, rue Albert Dhalenne
  • St Ouen
  • Ile-de-France
  • 93400
  • France

Listings


Biography

Alstom SA offers solutions for rail transport industry in Europe, the Americas, Asia and Pacific, the Middle East, and Africa. The company offers rolling stock solutions for electric buses, tramways, tram-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 21:50
End of Day Share Price2021/08/04 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.