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ALSTOM (ALO.PA) Stock Fundamental Analysis

EPA:ALO - Euronext Paris - Matif - FR0010220475 - Common Stock - Currency: EUR

19.205  +0.1 (+0.52%)

Fundamental Rating

2

Overall ALO gets a fundamental rating of 2 out of 10. We evaluated ALO against 107 industry peers in the Machinery industry. Both the profitability and financial health of ALO have multiple concerns. ALO is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year ALO has reported negative net income.
In the past year ALO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ALO reported negative net income in multiple years.
In multiple years ALO reported negative operating cash flow during the last 5 years.
ALO.PA Yearly Net Income VS EBIT VS OCF VS FCFALO.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

1.2 Ratios

With a Return On Assets value of -0.76%, ALO is not doing good in the industry: 70.30% of the companies in the same industry are doing better.
The Return On Equity of ALO (-2.47%) is worse than 71.29% of its industry peers.
The Return On Invested Capital of ALO (2.70%) is worse than 70.30% of its industry peers.
ALO had an Average Return On Invested Capital over the past 3 years of 1.60%. This is significantly below the industry average of 8.38%.
The 3 year average ROIC (1.60%) for ALO is below the current ROIC(2.70%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.76%
ROE -2.47%
ROIC 2.7%
ROA(3y)-1.08%
ROA(5y)0.24%
ROE(3y)-3.85%
ROE(5y)1.09%
ROIC(3y)1.6%
ROIC(5y)2.97%
ALO.PA Yearly ROA, ROE, ROICALO.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

With a Operating Margin value of 3.16%, ALO is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
ALO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.67%, ALO is doing worse than 95.05% of the companies in the same industry.
ALO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.16%
PM (TTM) N/A
GM 12.67%
OM growth 3Y-16.25%
OM growth 5Y-16.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.3%
GM growth 5Y-6.66%
ALO.PA Yearly Profit, Operating, Gross MarginsALO.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALO is destroying value.
Compared to 1 year ago, ALO has more shares outstanding
Compared to 5 years ago, ALO has more shares outstanding
ALO has a worse debt/assets ratio than last year.
ALO.PA Yearly Shares OutstandingALO.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ALO.PA Yearly Total Debt VS Total AssetsALO.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.82, we must say that ALO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALO (0.82) is worse than 72.28% of its industry peers.
The Debt to FCF ratio of ALO is 9.15, which is on the high side as it means it would take ALO, 9.15 years of fcf income to pay off all of its debts.
ALO has a Debt to FCF ratio (9.15) which is comparable to the rest of the industry.
ALO has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, ALO is in line with its industry, outperforming 52.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 9.15
Altman-Z 0.82
ROIC/WACC0.42
WACC6.37%
ALO.PA Yearly LT Debt VS Equity VS FCFALO.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B

2.3 Liquidity

ALO has a Current Ratio of 0.96. This is a bad value and indicates that ALO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.96, ALO is not doing good in the industry: 89.11% of the companies in the same industry are doing better.
ALO has a Quick Ratio of 0.96. This is a bad value and indicates that ALO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ALO (0.74) is worse than 71.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.74
ALO.PA Yearly Current Assets VS Current LiabilitesALO.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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3

3. Growth

3.1 Past

ALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -109.89%.
ALO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.21%.
The Revenue has been growing by 16.90% on average over the past years. This is quite good.
EPS 1Y (TTM)-109.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)6.21%
Revenue growth 3Y26.11%
Revenue growth 5Y16.9%
Sales Q2Q%3.93%

3.2 Future

ALO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.03% yearly.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y16.83%
EPS Next 2Y25.94%
EPS Next 3Y23.23%
EPS Next 5Y15.03%
Revenue Next Year4.77%
Revenue Next 2Y4.79%
Revenue Next 3Y4.55%
Revenue Next 5Y5.42%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALO.PA Yearly Revenue VS EstimatesALO.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ALO.PA Yearly EPS VS EstimatesALO.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 1 1.5 2

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ALO. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 10.20 indicates a reasonable valuation of ALO.
ALO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALO is cheaper than 69.31% of the companies in the same industry.
ALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
Industry RankSector Rank
PE N/A
Fwd PE 10.2
ALO.PA Price Earnings VS Forward Price EarningsALO.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

ALO's Enterprise Value to EBITDA ratio is in line with the industry average.
ALO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.78
EV/EBITDA 7.42
ALO.PA Per share dataALO.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ALO's earnings are expected to grow with 23.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.94%
EPS Next 3Y23.23%

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2

5. Dividend

5.1 Amount

ALO has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
ALO's Dividend Yield is a higher than the industry average which is at 3.14.
ALO's Dividend Yield is comparable with the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 2.03%

5.2 History

The dividend of ALO decreases each year by -15.03%.
Dividend Growth(5Y)-15.03%
Div Incr Years0
Div Non Decr Years2
ALO.PA Yearly Dividends per shareALO.PA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2021 2022 2023 1 2 3 4 5

5.3 Sustainability

ALO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-7.39%
EPS Next 2Y25.94%
EPS Next 3Y23.23%
ALO.PA Yearly Income VS Free CF VS DividendALO.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

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ALSTOM

EPA:ALO (2/5/2025, 5:35:30 PM)

19.205

+0.1 (+0.52%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-16 2025-01-16
Earnings (Next)N/A N/A
Inst Owners58.52%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.86B
Analysts73.04
Price Target23.49 (22.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.03%
Yearly Dividend0.15
Dividend Growth(5Y)-15.03%
DP-7.39%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.36%
PT rev (3m)11.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.78%
EPS NY rev (3m)-5.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 10.2
P/S 0.49
P/FCF 22.78
P/OCF 9.51
P/B 0.85
P/tB N/A
EV/EBITDA 7.42
EPS(TTM)-0.63
EYN/A
EPS(NY)1.88
Fwd EY9.8%
FCF(TTM)0.84
FCFY4.39%
OCF(TTM)2.02
OCFY10.52%
SpS38.9
BVpS22.52
TBVpS-1.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.76%
ROE -2.47%
ROCE 3.68%
ROIC 2.7%
ROICexc 3.06%
ROICexgc 16.96%
OM 3.16%
PM (TTM) N/A
GM 12.67%
FCFM 2.17%
ROA(3y)-1.08%
ROA(5y)0.24%
ROE(3y)-3.85%
ROE(5y)1.09%
ROIC(3y)1.6%
ROIC(5y)2.97%
ROICexc(3y)1.71%
ROICexc(5y)4.19%
ROICexgc(3y)19.32%
ROICexgc(5y)32.28%
ROCE(3y)2.18%
ROCE(5y)4.04%
ROICexcg growth 3Y-23.96%
ROICexcg growth 5YN/A
ROICexc growth 3Y5.12%
ROICexc growth 5Y-33.06%
OM growth 3Y-16.25%
OM growth 5Y-16.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.3%
GM growth 5Y-6.66%
F-Score5
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 9.15
Debt/EBITDA 2.34
Cap/Depr 63.21%
Cap/Sales 3.02%
Interest Coverage 250
Cash Conversion 65.31%
Profit Quality N/A
Current Ratio 0.96
Quick Ratio 0.74
Altman-Z 0.82
F-Score5
WACC6.37%
ROIC/WACC0.42
Cap/Depr(3y)51.84%
Cap/Depr(5y)63.36%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-109.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y16.83%
EPS Next 2Y25.94%
EPS Next 3Y23.23%
EPS Next 5Y15.03%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y26.11%
Revenue growth 5Y16.9%
Sales Q2Q%3.93%
Revenue Next Year4.77%
Revenue Next 2Y4.79%
Revenue Next 3Y4.55%
Revenue Next 5Y5.42%
EBIT growth 1Y11.59%
EBIT growth 3Y5.62%
EBIT growth 5Y-2.26%
EBIT Next Year102.47%
EBIT Next 3Y39.73%
EBIT Next 5Y25.4%
FCF growth 1Y-2.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.22%
OCF growth 3YN/A
OCF growth 5YN/A