ALSTOM UNSP (ALSMY) AI Stock Analysis

45 Followers

Top Page

ALSTOM UNSP

(OTC:ALSMY)

56Neutral

ALSMY demonstrates strong commercial momentum and a solid strategic focus, as highlighted in the earnings call. However, financial performance is hindered by profitability challenges and negative cash flows. Technical analysis shows positive momentum, but valuation concerns due to unprofitability weigh on the score. The overall outlook is mixed, with opportunities for improvement in financial efficiency.

ALSTOM UNSP (ALSMY) vs. S&P 500 (SPY)

Market Cap

$9.91B

Dividend Yield0.96%

Average Volume (3M)64.59K

Price to Earnings (P/E)65.1

Beta (1Y)0.65

Revenue Growth7.89%

EPS Growth-135.76%

CountryUS

Employees78,684

SectorIndustrials

Sector Strength91

IndustryRailroads

Share Statistics

EPS (TTM)-0.01

Shares Outstanding4,615,105,500

10 Day Avg. Volume87,563

30 Day Avg. Volume64,592

Financial Highlights & Ratios

PEG Ratio-2.01

Price to Book (P/B)0.84

Price to Sales (P/S)0.00

P/FCF Ratio22.45

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ALSTOM UNSP Business Overview & Revenue Model

Company DescriptionAlstom UNSP (ALSMY) is a global leader in the transportation sector, specializing in the design and manufacture of innovative and sustainable rail solutions. The company offers a wide range of products and services, including high-speed trains, metros, monorails, trams, and e-buses, as well as signaling systems, infrastructure, and digital mobility solutions. Alstom operates in over 60 countries, serving public and private rail operators worldwide and contributing to the development of cleaner and smarter transportation systems.

How the Company Makes MoneyAlstom generates revenue primarily through the sale of its rail transport products and related services. The company's key revenue streams include manufacturing and selling trains and rail systems, providing maintenance and modernization services for existing rail infrastructure, and offering signaling and digital solutions to enhance rail network efficiency and safety. Alstom often enters into long-term contracts with national and regional rail authorities, ensuring a steady flow of income. Additionally, the company benefits from strategic partnerships and collaborations that enhance its market reach and technological capabilities, contributing to its earnings.

ALSTOM UNSP Financial Statement Overview

Summary

ALSMY is facing profitability and cash flow challenges, with negative net income and operating cash flows. Despite revenue growth and a stable balance sheet with manageable debt, operational inefficiencies need addressing to enhance profitability and optimize cash flow.

Income Statement

Neutral

The company's income statement shows a decline in profitability with a negative net income in recent years. The gross profit margin has improved from 11.9% in 2022 to 12.6% in 2023, yet the net profit margin remains negative. Revenue growth was 6.7% from 2022 to 2023, indicating a positive trend. However, the absence of EBIT in 2023 highlights operational challenges.

Balance Sheet

Neutral

The balance sheet reveals a stable equity ratio of around 26% in 2023, reflecting a reasonable level of financial stability. The debt-to-equity ratio is 0.54, indicating manageable leverage levels. However, return on equity is negative due to consecutive net losses, suggesting inefficiencies in capital utilization.

Cash Flow

Negative

Cash flow analysis indicates negative trends with declining operating cash flows and negative free cash flow in 2023. The operating cash flow to net income ratio is not applicable due to negative net income. Cash flow management is a concern, given the negative free cash flow growth rate compared to 2022.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
17.95B	17.62B	16.51B	15.47B	8.79B	8.20B
	Gross Profit
2.27B	2.21B	1.97B	1.73B	1.39B	1.46B
	EBIT
509.00M	496.00M	264.00M	103.00M	417.00M	557.00M
	EBITDA
809.00M	762.00M	766.00M	732.00M	655.00M	819.00M
	Net Income Common Stockholders
-255.00M	-309.00M	-128.00M	-576.00M	247.00M	467.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.23B	976.00M	826.00M	810.00M	1.25B	2.17B
	Total Assets
31.61B	33.25B	31.40B	30.52B	28.57B	13.01B
	Total Debt
4.96B	4.66B	3.70B	3.69B	2.93B	1.64B
	Net Debt
2.76B	3.68B	2.87B	2.88B	1.68B	-537.00M
	Total Liabilities
26.51B	24.48B	22.29B	21.49B	19.45B	9.68B
	Stockholders Equity
5.01B	8.67B	9.00B	8.91B	9.04B	3.27B
Cash Flow		Free Cash Flow
414.00M	-567.00M	175.00M	-1.00B	-720.00M	202.00M
	Operating Cash Flow
957.00M	-82.00M	606.00M	-577.00M	-455.00M	476.00M
	Investing Cash Flow
136.00M	-431.00M	-478.00M	-443.00M	-1.94B	-368.00M
	Financing Cash Flow
-26.00M	696.00M	-61.00M	558.00M	1.46B	-1.36B

ALSTOM UNSP Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.14

Price Trends

50DMA

2.34

Negative

100DMA

2.24

Negative

200DMA

2.17

Negative

Market Momentum

MACD

>-0.01

Positive

RSI

39.28

Neutral

STOCH

8.41

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALSMY, the sentiment is Negative. The current price of 2.14 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.34, and below the 200-day MA of 2.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALSMY.

ALSTOM UNSP Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	79 Outperform	$12.48B	33.89	16.35%	0.49%	4.96%	8.41%
FIX	78 Outperform	$16.65B	28.31	37.81%	0.29%	31.47%	64.96%
APG	76 Outperform	$12.89B	90.02	9.09%	―	3.20%	―
NDSN	75 Outperform	$11.69B	26.15	16.15%	1.47%	0.78%	-8.42%
HII	71 Outperform	$9.03B	16.58	12.27%	2.30%	-1.04%	-21.80%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
ALSMY	56 Neutral	$9.91B	65.11	1.53%	0.96%	7.89%	-135.76%

* Industrials Sector Average

Performance Comparison

ALSMY

ALSTOM UNSP

2.14

0.28

15.05%

FIX

Comfort Systems

470.24

150.29

46.97%

HII

Huntington Ingalls

229.35

-20.09

-8.05%

NDSN

Nordson

204.45

-61.15

-23.02%

WWD

Woodward

209.79

29.42

16.31%

APG

APi Group

46.00

10.09

28.10%

ALSTOM UNSP Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q4-2025)

% Change Since: -15.42%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, strategic improvements, and significant contract wins, indicating positive momentum. However, challenges related to contract working capital and potential tariff impacts were noted. Overall, the highlights outweigh the lowlights, suggesting a positive sentiment.

Q4-2025 Updates

Positive Updates

Strong Financial Performance

Orders reached €19.8 billion, with a book-to-bill ratio of 1.1. Sales came in at €18.5 billion, marking a 6.6% organic growth. Adjusted EBIT was nearly €1.2 billion, up 18% year-on-year, reflecting a 6.4% margin compared to 5.7% last year.

Improvements in Strategic Priorities

Backlog margin improved to close to 18%, and significant progress was made in supply chain resilience and industrial efficiency, with record production volumes in Q4.

Significant Contract Wins

€1.8 billion in large service orders and a €500 million batch of options for RER NG in Rolling Stock. Two promising frame agreements in Signalling totaling €800 million in Europe.

Sustainability Achievements

Achieved a reduction of Scope 1 and 2 emissions by 40% since 2021-2022, more than five years ahead of target, and improved taxonomy sales alignment to 66%.

Negative Updates

Contract Working Capital Challenges

A contract working capital headwind is expected in fiscal year '26, largely due to project mix in Rolling Stock moving from start-up to ramp-up phase.

Potential Tariff Impact

Uncertainty around potential tariff impacts on U.S. projects, although guidance does not include any potential tariff impacts as quantification is considered premature.

Company Guidance

In the Alstom fiscal year 2024-2025 call, the company provided guidance on several metrics. Orders totaled €19.8 billion, resulting in a book-to-bill ratio of 1.1, in line with guidance. Sales exceeded expectations at €18.5 billion, representing a 6.6% organic growth. Adjusted EBIT was approximately €1.2 billion, up 18% from the previous year, with a margin of 6.4%, compared to 5.7% last year. Free cash flow was €502 million, reaching the top of the guided range. The company highlighted a backlog margin improvement to nearly 18%, with expectations for further enhancement due to a favorable mix and the completion of legacy contracts. For fiscal year 2025-2026, Alstom anticipates a book-to-bill above one, sales growth of 3-5%, and an adjusted EBIT margin around 7%. Free cash flow is projected between €200 million and €400 million, with a more pronounced seasonality compared to the previous year. The company remains positive about its growth trajectory and strategic priorities.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.