Altus Group (AIF) AI Stock Analysis

• Market Cap: C$2.43B
• Dividend Yield: 1.12%
• Average Volume (3M): 194.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -33.01%
• EPS Growth: -2201.72%
• Country: CA
• Employees: 2,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.38
• Shares Outstanding: 43,248,867
• 10 Day Avg. Volume: 142,115
• 30 Day Avg. Volume: 194,582
• PEG Ratio: 7.32
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 35.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$57.60
• Price Target Upside: 7.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$55.00 ▲(2.55% Upside)

Altus Group's overall stock score reflects a mix of strong financial performance and significant challenges. The company's profitability and solid equity base are strengths, but declining revenue and free cash flow growth are concerns. Technical analysis indicates bearish momentum, and valuation metrics suggest potential issues. The earnings call provided some positive insights, but leadership changes and revised guidance weigh on the outlook.

Positive Factors

Recurring Revenue Growth

The growth in recurring revenue, particularly from ARGUS Intelligence, indicates strong product adoption and customer retention, providing a stable and predictable income stream that supports long-term business sustainability.

Consolidated Margin Expansion

Margin expansion reflects improved operational efficiency and cost management, enhancing profitability and providing greater financial flexibility for future investments and growth initiatives.

Strong Cash Flow Generation

Robust cash flow generation strengthens the company's liquidity position, enabling it to fund operations, reduce debt, and invest in growth opportunities without relying heavily on external financing.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining market share and sales growth, which could impact long-term profitability and competitive positioning if not addressed.

CEO Departure and Leadership Changes

Leadership changes can create uncertainty and disrupt strategic initiatives, potentially affecting company performance and stakeholder confidence during the transition period.

Softer Performance in Key Segments

Weak performance in critical segments like Appraisals and Development Advisory could hinder overall growth, necessitating strategic adjustments to adapt to changing market conditions.

Altus Group Business Overview & Revenue Model

Company Description

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate industry in Canada, the United States, Europe, and the Asia Pacific. It operates through Altus Analytics and Commercial Real Estate Consulting (CRE Consulting) segments. The Altus Analytics segment offers ARGUS Enterprise, a commercial property valuation and asset management software; ARGUS Taliance, a real estate fund and alternative investment management software; ARGUS EstateMaster, a property development feasibility and management software; and ARGUS Developer, a real estate development pro forma and management software solution; ARGUS Voyanta, a powerful data aggregation, validation, and reporting software solution; ARGUS Acquire, a real estate acquisition deals and pipeline management software; and ARGUS ValueInsight, a commercial real estate valuation software. This segment also offers data subscription products that provide real estate information on the residential, office, industrial, and investment markets; and advisory and managed services. This segment serves equity and debt investors, valuers and appraisers, brokers, developers, banks, and public entities. The CRE Consulting segment offers real estate property tax services, including assessment reviews, management, and appeals, as well as personal property, and state and local tax advisory services; valuation services, such as appraisals of real estate portfolios, valuation of properties, due diligence, litigation, and economic consulting services; and construction feasibility study, budgeting, cost and loan monitoring, and project management services to owner operators, developers, financial institutions, and CRE asset holders and investors. The company was founded in 2005 and is headquartered in Toronto, Canada.

How the Company Makes Money

Altus Group generates revenue through a multi-faceted model that includes software subscriptions, professional services, and data solutions. The company's key revenue streams are derived from the sale of its cloud-based software products, such as Argus Enterprise, which is widely used for real estate management and valuation. Additionally, Altus Group earns income from consulting services that assist clients with property assessment, investment analysis, and market research. The company also benefits from data licensing and analytics services, providing valuable insights to real estate professionals. Strategic partnerships with industry leaders further bolster Altus Group's revenue, enabling them to expand their market reach and enhance their service offerings.

Altus Group Financial Statement Overview

Summary

Altus Group demonstrates strong profitability and a solid equity base, with efficient cost management reflected in high gross margins. However, declining revenue and free cash flow growth pose challenges. The company maintains a conservative leverage position, enhancing financial stability, but must address sales growth to sustain long-term performance.

Income Statement

The income statement shows a strong gross profit margin of 94.05% for TTM, indicating efficient cost management. However, the net profit margin is significantly lower at 64.92%, suggesting high non-operating income. Revenue has declined by 12.55% in TTM, indicating potential challenges in sales growth. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but with room for improvement.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.22 in TTM, showing conservative leverage. The return on equity is exceptionally high at 57.11% for TTM, driven by substantial net income. The equity ratio stands at 65.42%, indicating a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 14.76% in TTM, which could impact future liquidity. The operating cash flow to net income ratio is 0.30, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is robust at 92.76%, indicating strong cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	524.54M	519.73M	509.73M	735.45M	625.39M	561.16M
Gross Profit	192.44M	183.40M	169.21M	271.50M	223.93M	206.21M
EBITDA	83.08M	60.15M	33.57M	94.87M	85.23M	88.64M
Net Income	395.84M	13.42M	10.23M	-886.00K	25.69M	21.43M
Balance Sheet
Total Assets	1.24B	1.25B	1.21B	1.26B	1.20B	735.40M
Cash, Cash Equivalents and Short-Term Investments	382.71M	41.88M	41.89M	55.27M	51.27M	69.64M
Total Debt	200.28M	319.65M	355.55M	378.14M	358.06M	186.01M
Total Liabilities	429.16M	633.74M	612.16M	664.02M	609.84M	351.95M
Stockholders Equity	812.71M	617.22M	602.54M	599.87M	589.48M	383.45M
Cash Flow
Free Cash Flow	66.09M	72.47M	58.94M	52.60M	45.68M	67.95M
Operating Cash Flow	71.54M	79.92M	71.43M	77.08M	56.31M	72.30M
Investing Cash Flow	645.69M	2.77M	-34.92M	-54.06M	-373.31M	-20.90M
Financing Cash Flow	-374.60M	-75.62M	-51.78M	-18.66M	300.43M	-41.30M

Altus Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIF, the sentiment is Negative. The current price of 53.63 is below the 20-day moving average (MA) of 56.69, below the 50-day MA of 58.72, and below the 200-day MA of 55.17, indicating a bearish trend. The MACD of -1.58 indicates Positive momentum. The RSI at 15.93 is Positive, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIF.

Altus Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	74 Outperform	C$1.73B	5.63	19.75%	0.09%	14.29%	144.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FSV	65 Neutral	$10.00B	52.31	11.14%	0.70%	14.10%	28.82%
CIGI	63 Neutral	$11.11B	71.78	8.68%	0.20%	22.85%	-25.32%
AIF	54 Neutral	C$2.43B	-39.93	3.20%	1.12%	-33.01%	-2201.72%
SVI	47 Neutral	C$1.76B	-501.04	-2.63%	0.24%	9.98%	93.01%

Altus Group Corporate Events

Altus Group Reports Q3 2025 Results and Declares Q4 Dividend

Altus Group reported its Q3 2025 financial results, highlighting a steady growth in recurring revenue and an expansion in adjusted EBITDA margin. The company also announced a Q4 2025 dividend payment, reflecting its stable financial performance and commitment to returning value to shareholders. The business outlook for Q4 2025 and the full year 2025 indicates moderate growth in analytics revenue and recurring revenue, with some challenges anticipated in the appraisals and development advisory segment due to global trade uncertainty and interest rate volatility.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Announces Leadership Changes and Strategic Review Conclusion

Altus Group has announced a significant leadership transition, with Jim Hannon stepping down as CEO and Mike Gordon being appointed as Executive Chair and future CEO in Q1 2026. This change is part of the company’s strategic focus on accelerating market adoption of new product innovations as it transitions into a pure-play CRE data and analytics platform. Additionally, the company concluded a strategic review, deciding to remain independent and continue executing its strategy to maximize shareholder value. This decision reflects confidence in the company’s transformation and growth potential, with further details to be shared at an upcoming Investor Day.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Addresses Speculative Media Reports Amid Strategic Review

Altus Group has responded to media reports about a potential transaction involving the company, acknowledging a speculative article and confirming an ongoing strategic review. This review, aimed at maximizing stakeholder value, may involve acquisitions, divestitures, or a sale or merger, though no specific course of action is guaranteed. The board is committed to acting in the best interests of the company and its stakeholders, but will only disclose developments as required by regulatory obligations.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$62.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Earnings Call: Strong Quarter Amid Challenges

Altus Group Limited’s recent earnings call painted a picture of robust financial health, underscored by strong quarterly performance metrics. The company reported significant improvements in adjusted EBITDA, recurring revenue, and margin expansion, despite facing challenges in specific segments and markets. Strategic initiatives, including a share buyback program and a strong cash position, further highlighted Altus Group’s positive financial standing.

Altus Group Declares Q3 2025 Dividend and Reinvestment Plan

Altus Group announced a cash dividend of $0.15 per common share for Q3 2025, payable on October 15, 2025, to shareholders of record as of September 30, 2025. The company also offers a Dividend Reinvestment Plan, allowing shareholders to reinvest dividends into additional shares at a discounted price, reinforcing its commitment to shareholder value and market stability.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$55.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Reports Strong Q2 2025 Financial Performance

Altus Group reported its Q2 2025 financial results, highlighting steady growth in recurring revenue and an expansion in adjusted EBITDA margins across all business segments. The launch of ARGUS Intelligence has been a key driver for revenue growth and adoption of asset-based pricing, while the company also executed a significant share buyback, reflecting confidence in its growth trajectory and profitability. The business outlook for the remainder of 2025 includes expectations for continued revenue growth and margin expansion, with a focus on analytics and advisory services.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$55.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.