Alstom SA (ALO) AI Stock Analysis

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Alstom SA

(LSE:ALO)

Rating:56Neutral

Price Target:

€20.00

▲(1.63%Upside)

Alstom SA's overall stock score reflects a mix of financial recovery and valuation concerns. The company shows significant improvements in financial performance, with better profitability and robust cash flow recovery. However, technical indicators suggest weak momentum, with the stock trading below major moving averages. A high P/E ratio without a dividend yield raises valuation concerns, making it a less attractive investment at the current price point. Although the financial outlook has improved, the high valuation and weak technicals weigh down the overall score.

Alstom SA (ALO) vs. iShares MSCI France ETF (EWQ)

Market Cap

€8.53B

Dividend Yield1.24%

Average Volume (3M)1.46M

Price to Earnings (P/E)62.2

Beta (1Y)1.19

Revenue Growth4.94%

EPS GrowthN/A

CountryFR

Employees78,684

SectorIndustrials

Sector Strength92

IndustryRailroads

Share Statistics

EPS (TTM)-0.14

Shares Outstanding461,944,850

10 Day Avg. Volume2,589,931

30 Day Avg. Volume1,458,331

Financial Highlights & Ratios

PEG Ratio-2.21

Price to Book (P/B)0.93

Price to Sales (P/S)0.00

P/FCF Ratio24.65

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€23.10

Price Target Upside17.38% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Alstom SA Business Overview & Revenue Model

Company DescriptionAlstom SA offers solutions for rail transport industry in Europe, the Americas, Asia and Pacific, the Middle East, and Africa. The company offers rolling stock solutions for people movers and monorails, light rails, metros, commuter trains, regional and intercity trains, high-speed trains, and locomotives; asset optimization, connectivity, digital passenger, and security and city mobility solutions; and signaling products, such as urban, mainline, and freight and mining signaling. It also provides tram, metro, and main line systems; and tracklaying and track solutions, catenary free and ground feeding solutions, electrification solutions, and electromechanical equipment. In addition, the company provides maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors and generators, switchgears, auxiliary converters, traction transformers, brake friction, components propulsion, train control and information systems, and dispen dampers. The company was incorporated in 1992 and is based in Saint-Ouen, France.

How the Company Makes MoneyAlstom generates revenue primarily through the sale of rolling stock, including trains, metros, and trams, which form the core of its product offerings. Additionally, the company earns significant income from providing maintenance services, signaling systems, and turnkey transportation solutions, which often involve long-term contracts. Alstom also benefits from strategic partnerships and collaborations with governments and other transportation authorities worldwide, which help secure large-scale infrastructure projects, contributing to its earnings. Furthermore, its focus on digital and sustainable technologies aligns with global trends towards greener transport solutions, providing additional revenue growth opportunities.

Alstom SA Financial Statement Overview

Summary

Alstom SA shows revenue growth but struggles with profitability and cash flow. Negative net income and free cash flow indicate operational inefficiencies. Although leverage is moderate, the increased reliance on debt and negative ROE are concerning.

Income Statement

Neutral

Alstom SA has experienced inconsistent revenue growth. The revenue growth rate from 2023 to 2024 was 6.73%, following a 6.69% increase from 2022 to 2023. However, profitability metrics are concerning. The net profit margin remains negative, at -1.75% in 2024, showing deterioration from -0.78% in 2023. The gross profit margin improved slightly to 12.56%, while EBIT and EBITDA margins stand at 2.81% and 4.32%, respectively. Overall, the company shows growth in revenue but struggles with profitability.

Balance Sheet

Neutral

The balance sheet of Alstom SA shows a relatively stable equity position with a slight decline in stockholders' equity from 2023 to 2024. The debt-to-equity ratio increased to 0.54, indicating a higher reliance on debt financing. Return on Equity (ROE) is negative for 2024, reflecting the negative net income. The equity ratio is stable at around 26.08%. The company's leverage is moderate, but the negative ROE highlights profitability concerns.

Cash Flow

Negative

Alstom SA's cash flow situation is challenging, with negative free cash flow of -€567 million in 2024. Operating cash flow decreased significantly to -€82 million, indicating operational challenges. The Free Cash Flow to Net Income Ratio is not meaningful due to negative values, and the Operating Cash Flow to Net Income Ratio is also negative. These factors suggest difficulties in generating cash from operations, raising concerns about liquidity and financial flexibility.

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
1.56B	976.00M	826.00M	810.00M	1.25B	2.17B
	Total Assets
14.36B	33.25B	31.40B	30.52B	28.57B	13.01B
	Total Debt
2.04B	4.66B	3.70B	3.69B	2.93B	1.64B
	Net Debt
476.00M	3.68B	2.87B	2.88B	1.68B	-537.00M
	Total Liabilities
10.65B	24.48B	22.29B	21.49B	19.45B	9.68B
	Stockholders Equity
3.66B	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 SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price19.68

Price Trends

50DMA

20.57

Negative

100DMA

20.63

Negative

200DMA

20.17

Negative

Market Momentum

MACD

-0.45

Positive

RSI

47.68

Neutral

STOCH

42.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALO, the sentiment is Negative. The current price of 19.68 is below the 20-day moving average (MA) of 20.36, below the 50-day MA of 20.57, and below the 200-day MA of 20.17, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 42.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALO.

Alstom SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
ALO	56 Neutral	€8.53B	62.19	1.54%	1.24%	4.94%	―
0H59		€11.27B	19.66	14.72%	2.56%	―	―
0HAN		€14.94B	14.23	8.49%	4.80%	―	―
0NQF		€13.77B	17.41	2.50%	3.85%	―	―
COD		€48.20B	17.05	11.75%	2.11%	―	―
0NY8		€22.09B	19.85	13.14%	4.11%	―	―

* Industrials Sector Average

Performance Comparison

FR:ALO

Alstom SA

19.69

0.86

4.54%

GB:0H59

Accor SA

46.86

7.77

19.88%

GB:0HAN

Bouygues

39.29

5.52

16.35%

GB:0NQF

Renault

47.07

-3.49

-6.90%

GB:COD

Compagnie de Saint Gobain

95.00

15.77

19.90%

GB:0NY8

Veolia Environnement

30.27

0.99

3.38%

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.