ALSTOM (ALO.PA)

FR0010220475 - Common Stock

18.085  -0.16 (-0.88%)

Fundamental Rating

2

Overall ALO gets a fundamental rating of 2 out of 10. We evaluated ALO against 110 industry peers in the Machinery industry. ALO may be in some trouble as it scores bad on both profitability and health. ALO has a correct valuation and a medium growth rate.



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.
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 -0.93%, ALO is doing worse than 79.63% of the companies in the same industry.
ALO has a Return On Equity of -3.56%. This is in the lower half of the industry: ALO underperforms 78.70% of its industry peers.
ALO has a worse Return On Invested Capital (3.05%) than 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALO is significantly below the industry average of 8.57%.
The 3 year average ROIC (1.60%) for ALO is below the current ROIC(3.05%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.93%
ROE -3.56%
ROIC 3.05%
ROA(3y)-1.08%
ROA(5y)0.24%
ROE(3y)-3.85%
ROE(5y)1.09%
ROIC(3y)1.6%
ROIC(5y)2.97%

1.3 Margins

ALO has a Operating Margin of 3.22%. This is in the lower half of the industry: ALO underperforms 69.44% of its industry peers.
ALO's Operating Margin has declined in the last couple of years.
ALO has a Gross Margin of 12.56%. This is amonst the worse of the industry: ALO underperforms 92.59% of its industry peers.
In the last couple of years the Gross Margin of ALO has declined.
Industry RankSector Rank
OM 3.22%
PM (TTM) N/A
GM 12.56%
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%

1

2. Health

2.1 Basic Checks

ALO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALO has more shares outstanding than it did 1 year ago.
ALO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALO has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.67, we must say that ALO is in the distress zone and has some risk of bankruptcy.
ALO's Altman-Z score of 0.67 is on the low side compared to the rest of the industry. ALO is outperformed by 77.78% of its industry peers.
ALO has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, ALO perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF N/A
Altman-Z 0.67
ROIC/WACC0.48
WACC6.43%

2.3 Liquidity

A Current Ratio of 0.83 indicates that ALO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.83, ALO is doing worse than 94.44% of the companies in the same industry.
ALO has a Quick Ratio of 0.83. 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 (0.64) is worse than 82.41% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.64

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.
ALO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.74%.
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 Q2Q13.79%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y26.26%
Revenue growth 5Y17.58%
Revenue growth Q2Q8.48%

3.2 Future

ALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.79% yearly.
The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y76.38%
EPS Next 2Y50.11%
EPS Next 3Y46.05%
EPS Next 5Y43.79%
Revenue Next Year4.17%
Revenue Next 2Y4.27%
Revenue Next 3Y4.47%
Revenue Next 5Y4.45%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.49, which indicates a rather expensive current valuation of ALO.
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 at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.42, which indicates a very decent valuation of ALO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALO indicates a somewhat cheap valuation: ALO is cheaper than 69.44% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. ALO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 23.49
Fwd PE 10.42

4.2 Price Multiples

ALO's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.58

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 46.05% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y50.11%
EPS Next 3Y46.05%

0

5. Dividend

5.1 Amount

No dividends for ALO!.
Industry RankSector Rank
Dividend Yield N/A

ALSTOM

EPA:ALO (5/17/2024, 7:00:00 PM)

18.085

-0.16 (-0.88%)

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 Cap6.95B
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 23.49
Fwd PE 10.42
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)0.31
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.93%
ROE -3.56%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.22%
PM (TTM) N/A
GM 12.56%
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 Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.83
Quick Ratio 0.64
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 Y76.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.74%
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