OTCPK:ATRR.F

Stock Analysis Report

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Executive Summary

Altarea is the leading property developer in France.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ATRR.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

ATRR.F

5.0%

US REITs

3.0%

US Market


1 Year Return

-41.0%

ATRR.F

-10.1%

US REITs

9.9%

US Market

Return vs Industry: ATRR.F underperformed the US REITs industry which returned -10.1% over the past year.

Return vs Market: ATRR.F underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

ATRR.FIndustryMarket
7 Day0%5.0%3.0%
30 Day0%4.8%8.2%
90 Day-43.3%-13.7%0.4%
1 Year-41.0%-41.0%-6.3%-10.1%12.4%9.9%
3 Yearn/a10.1%-3.5%31.0%22.3%
5 Yearn/a40.5%11.5%58.1%40.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATRR.F ($114.78) is trading below our estimate of fair value ($182.97)

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


Price To Earnings Ratio

PE vs Industry: ATRR.F is good value based on its PE Ratio (9.2x) compared to the REITs industry average (27.4x).

PE vs Market: ATRR.F is good value based on its PE Ratio (9.2x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: ATRR.F is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: ATRR.F is good value based on its PB Ratio (1x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Altarea forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATRR.F's forecast earnings growth (1.3% per year) is below the savings rate (2.2%).

Earnings vs Market: ATRR.F's earnings (1.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: ATRR.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATRR.F's revenue (8.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: ATRR.F's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATRR.F's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Altarea performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATRR.F has a large one-off gain of €72.7M impacting its December 31 2019 financial results.

Growing Profit Margin: ATRR.F's current net profit margins (7.6%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: ATRR.F's earnings have grown by 12.9% per year over the past 5 years.

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

Earnings vs Industry: ATRR.F had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the REITs industry average (5.3%).


Return on Equity

High ROE: ATRR.F's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Altarea's financial position?


Financial Position Analysis

Short Term Liabilities: ATRR.F's short term assets (€3.6B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: ATRR.F's short term assets (€3.6B) exceed its long term liabilities (€2.8B).


Debt to Equity History and Analysis

Debt Level: ATRR.F's debt to equity ratio (113.9%) is considered high.

Reducing Debt: ATRR.F's debt to equity ratio has increased from 106.4% to 113.9% over the past 5 years.

Debt Coverage: ATRR.F's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: ATRR.F's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

9.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATRR.F's dividend (9.8%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: ATRR.F's dividend (9.8%) is in the top 25% of dividend payers in the US market (4.54%)


Stability and Growth of Payments

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

Growing Dividend: ATRR.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), ATRR.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATRR.F's dividends in 3 years are forecast to be thoroughly covered by earnings (4.3% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Jacques Ehrmann (59yo)

0.92

Tenure

€1,595,000

Compensation

Mr. Jacques Dominique Ehrmann serves as General Manager of Altafi 2 at Altareit SCA since July 01 2019. He was Chairman of the Board and Chief Executive Officer of Carmila S.A. from April 17, 2014 to June  ...


Leadership Team

NamePositionTenureCompensationOwnership
Alain Taravella
Founderno datano data20.99% 511.6m
Jacques Ehrmann
Managing Director0.92yr€1.60m0.15% 3.7m
Éric Dumas
Chief Financial Officerno datano datano data
Alain Jodar
Chief Executive Officer of Operation & Risk Management3.58yrsno datano data
Bruno Blanc
Investments Directorno datano datano data
Anne Ghisalberti
Finance & Accounting Director3.58yrsno datano data
Nabil Akl
Group Technical Director3.25yrsno datano data
Philippe Bouvier
Director of Investor Relations - Cogedimno datano datano data
Catherine Leroy
Analyst & Investor Relationsno datano datano data
Nathalie Bardin
Head of CSRno datano datano data

3.6yrs

Average Tenure

61yo

Average Age

Experienced Management: ATRR.F's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alain Taravella
Founderno datano data20.99% 511.6m
Laurence Beardsley
Chairwoman of Cogedim Paris Métropoleno datano datano data
Stéphane Dalliet
Chairman & CEO of Pitch Promotion Groupno datano datano data
Christian de Gournay
Chairman of the Supervisory Board6yrs€275.00k1.34% 32.6m
Alain Dassas
Independent & Representative Member of Supervisory Board4.58yrs€15.00kno data
Jacques Nicolet
Supervisory Board Member13yrs€9.00k0.055% 1.3m
Adrien Blanc
Chairman of Altarea Cogedim Entreprise2.42yrs€3.00kno data
Philippe Mauro
Supervisory Board Member1.33yrs€106.00k0.043% 1.0m
Françoise Jacqueline Debrus
Supervisory Board Member11.08yrsno data0.000050% 1.2k
Dominique Rongier
Independent Supervisory Board Member11.08yrs€19.50k0.000080% 1.9k

6.0yrs

Average Tenure

65yo

Average Age

Experienced Board: ATRR.F's board of directors are considered experienced (6 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 diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

Altarea SCA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altarea SCA
  • Ticker: ATRR.F
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: €2.192b
  • Listing Market Cap: €2.437b
  • Shares outstanding: 16.53m
  • Website: https://www.altareacogedim.com

Number of Employees


Location

  • Altarea SCA
  • 8 avenue Delcassé
  • Paris
  • Languedoc-Roussillon
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALTAENXTPA (Euronext Paris)YesCommon SharesFREURDec 2004
0IRKLSE (London Stock Exchange)YesCommon SharesGBEURDec 2004
ALTAPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURDec 2004
ATRR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2004
XALBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 2004

Biography

Altarea is the leading property developer in France. As both a developer and an investor, the Group operates in the three main property markets (Retail, Residential and Business property), leading major mixed-use urban renewal projects in France. The Group has the required expertise in each sector to design, develop, market and manage made-to-measure property products. In Retail, Altarea managed assets of €5.2 billion (€2.9 billion in Group share) as of 31 December 2019. Listed in Compartment A of Euronext Paris, Altarea had a market capitalisation of nearly €3.4 billion at 31 December 2019. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 05:59
End of Day Share Price2020/05/29 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.