ALSTOM (ALO.PA)

FR0010220475 - Common Stock

14.13  +0.36 (+2.58%)

Fundamental Rating

2

ALO gets a fundamental rating of 2 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. ALO has a decent growth rate and is not valued too expensively.



1

1. Profitability

1.1 Basic Checks

ALO had positive earnings in the past year.
ALO had a negative operating cash flow in the past year.
In multiple years ALO reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ALO reported negative operating cash flow in multiple years.

1.2 Ratios

ALO has a Return On Assets of -0.33%. This is in the lower half of the industry: ALO underperforms 71.96% of its industry peers.
The Return On Equity of ALO (-1.22%) is worse than 71.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.72%, ALO is doing worse than 69.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALO is significantly below the industry average of 9.32%.
The 3 year average ROIC (1.46%) for ALO is below the current ROIC(2.72%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.33%
ROE -1.22%
ROIC 2.72%
ROA(3y)-0.49%
ROA(5y)1.44%
ROE(3y)-1.75%
ROE(5y)5.13%
ROIC(3y)1.46%
ROIC(5y)3.96%

1.3 Margins

ALO has a Operating Margin of 3.01%. This is in the lower half of the industry: ALO underperforms 71.96% of its industry peers.
In the last couple of years the Operating Margin of ALO has declined.
Looking at the Gross Margin, with a value of 12.41%, ALO is doing worse than 92.52% of the companies in the same industry.
In the last couple of years the Gross Margin of ALO has declined.
Industry RankSector Rank
OM 3.01%
PM (TTM) N/A
GM 12.41%
OM growth 3Y-36.17%
OM growth 5Y-20.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.56%
GM growth 5Y-6.42%

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.
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.
The debt/assets ratio for ALO has been reduced compared to a year ago.

2.2 Solvency

ALO has an Altman-Z score of 0.63. This is a bad value and indicates that ALO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, ALO is doing worse than 78.50% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that ALO is not too dependend on debt financing.
ALO has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: ALO outperforms 52.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Altman-Z 0.63
ROIC/WACC0.42
WACC6.42%

2.3 Liquidity

ALO has a Current Ratio of 0.85. 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 Current ratio of ALO (0.85) is worse than 93.46% of its industry peers.
A Quick Ratio of 0.63 indicates that ALO may have some problems paying its short term obligations.
ALO has a worse Quick ratio (0.63) than 83.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.63

5

3. Growth

3.1 Past

ALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 267.39%, 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 -15.26% on average per year.
Looking at the last year, ALO shows a small growth in Revenue. The Revenue has grown by 5.14% in the last year.
The Revenue has been growing by 17.58% on average over the past years. This is quite good.
EPS 1Y (TTM)267.39%
EPS 3Y-25.02%
EPS 5Y-15.26%
EPS growth Q2Q100%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y26.26%
Revenue growth 5Y17.58%
Revenue growth Q2Q4.91%

3.2 Future

Based on estimates for the next years, ALO will show a very strong growth in Earnings Per Share. The EPS will grow by 43.79% on average per year.
Based on estimates for the next years, ALO will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y80.22%
EPS Next 2Y52.44%
EPS Next 3Y46.75%
EPS Next 5Y43.79%
Revenue Next Year4.1%
Revenue Next 2Y4.27%
Revenue Next 3Y4.46%
Revenue Next 5Y5.23%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.35, ALO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ALO is on the same level as its industry peers.
ALO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.90, the valuation of ALO can be described as very cheap.
87.85% of the companies in the same industry are more expensive than ALO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, ALO is valued rather cheaply.
Industry RankSector Rank
PE 18.35
Fwd PE 7.9

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALO.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.12

4.3 Compensation for Growth

ALO's 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 46.75% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y52.44%
EPS Next 3Y46.75%

0

5. Dividend

5.1 Amount

ALO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ALSTOM

EPA:ALO (3/28/2024, 7:00:00 PM)

14.13

+0.36 (+2.58%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.43B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.35
Fwd PE 7.9
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.23
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.33%
ROE -1.22%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.01%
PM (TTM) N/A
GM 12.41%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.85
Quick Ratio 0.63
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)267.39%
EPS 3Y-25.02%
EPS 5Y
EPS growth Q2Q
EPS Next Y80.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.14%
Revenue growth 3Y26.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y