ALSTOM (ALO.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:ALO • FR0010220475
27.02 EUR
-0.13 (-0.48%)
Last: Jan 30, 2026, 05:36 PM
ALO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. Both the profitability and financial health of ALO have multiple concerns. While showing a medium growth rate, ALO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- ALO had positive earnings in the past year.
- In the past year ALO had a positive cash flow from operations.
- In multiple years ALO reported negative net income over the last 5 years.
- In multiple years ALO reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.92%, ALO is doing worse than 69.37% of the companies in the same industry.
- ALO's Return On Equity of 3.03% is on the low side compared to the rest of the industry. ALO is outperformed by 67.57% of its industry peers.
- With a Return On Invested Capital value of 3.65%, ALO is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for ALO is significantly below the industry average of 9.21%.
- The last Return On Invested Capital (3.65%) for ALO is above the 3 year average (2.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 3.03% | ||
| ROIC | 3.65% |
ROA(3y)-0.31%
ROA(5y)-0.39%
ROE(3y)-1.2%
ROE(5y)-1.48%
ROIC(3y)2.46%
ROIC(5y)2.04%
1.3 Margins
- The Profit Margin of ALO (1.68%) is worse than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of ALO has declined.
- The Operating Margin of ALO (4.01%) is worse than 63.96% of its industry peers.
- ALO's Operating Margin has declined in the last couple of years.
- The Gross Margin of ALO (12.59%) is worse than 93.69% of its industry peers.
- In the last couple of years the Gross Margin of ALO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.01% | ||
| PM (TTM) | 1.68% | ||
| GM | 12.59% |
OM growth 3Y69.79%
OM growth 5Y-11.95%
PM growth 3YN/A
PM growth 5Y-32.37%
GM growth 3Y3.78%
GM growth 5Y-6.9%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALO is destroying value.
- The number of shares outstanding for ALO has been increased compared to 1 year ago.
- The number of shares outstanding for ALO has been increased compared to 5 years ago.
- ALO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.95, we must say that ALO is in the distress zone and has some risk of bankruptcy.
- ALO has a worse Altman-Z score (0.95) than 76.58% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ALO is not too dependend on debt financing.
- ALO has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.48
WACC7.62%
2.3 Liquidity
- ALO has a Current Ratio of 0.97. This is a bad value and indicates that ALO is not financially healthy enough and could expect problems in meeting its short term obligations.
- ALO has a Current ratio of 0.97. This is amonst the worse of the industry: ALO underperforms 86.49% of its industry peers.
- A Quick Ratio of 0.74 indicates that ALO may have some problems paying its short term obligations.
- The Quick ratio of ALO (0.74) is worse than 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- ALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 208.61%, which is quite impressive.
- Measured over the past years, ALO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.24% on average per year.
- Looking at the last year, ALO shows a small growth in Revenue. The Revenue has grown by 4.58% in the last year.
- ALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.65% yearly.
EPS 1Y (TTM)208.61%
EPS 3YN/A
EPS 5Y-29.24%
EPS Q2Q%275.83%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y6.12%
Revenue growth 5Y17.65%
Sales Q2Q%3.24%
3.2 Future
- The Earnings Per Share is expected to grow by 13.96% on average over the next years. This is quite good.
- ALO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y26.72%
EPS Next 2Y24.74%
EPS Next 3Y20.49%
EPS Next 5Y13.96%
Revenue Next Year3.75%
Revenue Next 2Y4.16%
Revenue Next 3Y4.07%
Revenue Next 5Y4.34%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 39.74, which means the current valuation is very expensive for ALO.
- 64.86% of the companies in the same industry are cheaper than ALO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ALO is valued a bit more expensive.
- A Price/Forward Earnings ratio of 12.25 indicates a correct valuation of ALO.
- ALO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALO is cheaper than 72.97% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALO to the average of the S&P500 Index (25.72), we can say ALO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.74 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
- ALO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
- ALO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ALO's earnings are expected to grow with 20.49% in the coming years.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y24.74%
EPS Next 3Y20.49%
5. Dividend
5.1 Amount
- ALO has a Yearly Dividend Yield of 2.03%.
- ALO's Dividend Yield is a higher than the industry average which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.82, ALO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
- The dividend of ALO decreases each year by -59.58%.
Dividend Growth(5Y)-59.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ALO pays out 11.39% of its income as dividend. This is a sustainable payout ratio.
DP11.39%
EPS Next 2Y24.74%
EPS Next 3Y20.49%
ALSTOM / ALO.PA FAQ
What is the ChartMill fundamental rating of ALSTOM (ALO.PA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALO.PA.
Can you provide the valuation status for ALSTOM?
ChartMill assigns a valuation rating of 3 / 10 to ALSTOM (ALO.PA). This can be considered as Overvalued.
What is the profitability of ALO stock?
ALSTOM (ALO.PA) has a profitability rating of 2 / 10.
What are the PE and PB ratios of ALSTOM (ALO.PA) stock?
The Price/Earnings (PE) ratio for ALSTOM (ALO.PA) is 39.74 and the Price/Book (PB) ratio is 1.2.
How financially healthy is ALSTOM?
The financial health rating of ALSTOM (ALO.PA) is 1 / 10.