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Alaris Royalty (5UK) AI Stock Analysis

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DE:5UK

Alaris Royalty

(Frankfurt:5UK)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Diversified portfolio with low partner leverageA broad portfolio of 26 Partners and generally low partner leverage can reduce concentration and credit risk across Alaris’s income base. Strong earnings coverage also supports the resilience of contractual distributions, helping the trust sustain cash receipts through varied operating conditions.
Negative Factors
Deeply negative operating and free cash flowPersistently negative cash generation weakens confidence that reported profitability is translating into distributable liquidity. If operating outflows remain elevated, Alaris may have less internally generated capital for investments, debt reduction, and unitholder distributions.

Alaris Royalty (5UK) vs. iShares MSCI Germany ETF (EWG)

-10%0%10%20%30%40%50%DE:5UK+23.58%EWG+6.38%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
EUR 1.10B
Dividend Yield
6.75%
Average Volume (3M)
―
Price to Earnings (P/E)
13.0
Beta (1Y)
0.37
Revenue Growth
-0.59%
EPS Growth
-56.85%
Country
Germany
Employees
22
Sector
Financial
Sector Strength
68
Industry
Asset Management - Income

Alaris Royalty Business Overview & Revenue Model

Company Description

Alaris Equity Partners Income Trust is a Canadian alternative capital provider that supplies non-control preferred and common equity financing to private middle-market businesses (Partners) in exchange for priority distributions, dividends, or intere...

Alaris Royalty Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:-7.59%|Next Earnings Date:Mar 11, 2027
Earnings Call SentimentPositive

The call was predominantly positive. Management reported strong cash-flow and revenue growth, record Run Rate Revenue, substantial investment deployment, improved payout coverage, low portfolio leverage, expanded financing capacity, and positive performance at several Partners. These strengths were offset by a quarterly net loss and significant non-cash fair value losses, expectedly flat 2027 resets, short-term issues at several Partners, macro-related pressure on LMS, softness in private equity markets, and uncertainty around exit timing. The cash-generating performance and outlook were emphasized as strong despite the accounting-driven decline in earnings and net book value.

Positive Updates

Strong Third-Quarter Partner Revenue Growth
Total Partner distribution revenue increased 25.9% year-over-year to CAD 72.2 million, driven by investments completed over the past 12 months, contractual distribution resets, and higher common distributions from Fleet.

Negative Updates

Quarterly Net Loss and Fair Value Write-Down
Alaris recorded a net loss and comprehensive loss of CAD 6.2 million, compared with income of CAD 86 million in the prior-year period. The quarter included CAD 58.9 million of net unrealized fair value losses on Partner investments, compared with unrealized gains of CAD 47.9 million in Q3 2025.

Company Guidance

Alaris expects 2027 resets, based on Partners’ 2026 financial performance, to be relatively flat overall; fourth-quarter total Partner revenue is forecast at approximately CAD 53 million, estimated next 12-month Run Rate Revenue is approximately CAD 231 million, and estimated Run Rate Payout Ratio is approximately 63%, below the long-term target range of 65%-70%. Based on current assumptions, Alaris expects to generate approximately CAD 125.8 million in annual net cash from operating activities, with approximately CAD 79.2 million allocated to unitholder distributions and approximately CAD 46.6 million available for reinvestment, debt repayment, and other corporate purposes. Alaris currently has about $140 million available on the credit facility and about $46 million generated a year in capacity, bringing available room to about $200 million; it expects more growth between now and year-end, still expects one or more exits in the coming months, and is targeting 2028 through 2030 for Brookfield and Sono Bello and the Ohana third-party partners. Barring future changes, it expects a recovery of about 50% of the write-down, or approximately 15% even just on the preferred portfolio alone.

Alaris Royalty Peers Comparison

Overall Rating

UnderperformOutperform
Sector (68)

Financial Indicators

DE:5UK against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:CVGTSE:CVG81OutperformCAD 1.13B8.1811.06%1.14%-93.61%24.49%
TSE:AGF.BTSE:AGF.B73OutperformCAD 957.15M6.9111.46%3.50%12.19%26.48%
TSE:MKPTSE:MKP71OutperformCAD 890.15M10.6212.70%7.77%13.67%24.33%
TSE:DLCGTSE:DLCG68NeutralCAD 631.12M28.4616.25%2.20%3.10%―
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%

* Financial Sector Average

Performance Comparison

0%25%50%75%DE:5UKTSE:AGF.BTSE:CVGTSE:DLCGTSE:MKPDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
DE:5UK and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:5UKAlaris Royalty13.572.4221.76%
TSE:AGF.BAgf Management B Nv15.132.0615.75%
TSE:CVGClairvest Group Inc84.6314.2620.27%
TSE:DLCGDominion Lending Centres, Inc. (Canada) Class A8.19-1.36-14.28%
TSE:MKPMcan Financial Group21.871.748.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.