ALSTOM UNSP (ALSMY) AI Stock Analysis

• Market Cap: $14.70B
• Dividend Yield: N/A
• Average Volume (3M): 20.95K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.49
• Revenue Growth: 6.52%
• EPS Growth: N/A
• Country: US
• Employees: 78,684
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.06
• Shares Outstanding: 4,620,300,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20,954
• PEG Ratio: -0.42
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 18.27
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 8.62
• Enterprise Value/Ebitda: 16.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.21
• Revenue Forecast (FY): $22.29B

• Rating: 66 Neutral
• Price Target: $3.50 ▲(32.58% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

ALSTOM UNSP's overall stock score is driven by strong financial performance improvements and positive technical indicators. The earnings call provided a positive outlook with strong order intake and sales growth, though challenges like negative free cash flow and high valuation metrics temper the score.

Positive Factors

Order Backlog and Commercial Momentum

A EUR 10.5bn order intake and book-to-bill above 1 give multi‑year revenue visibility and backlog conversion tailwinds. Large, diversified contracts reduce short‑term cyclicality, support capacity planning, and underpin steady top‑line delivery over the medium term.

Recurring Services Revenue

A material services business (maintenance, spare parts, long‑term agreements) creates recurring, higher‑visibility revenue and steadier cash flows than project deliveries alone. This lifecycle model strengthens customer lock‑in and supports margin resilience across cycles.

Improved Balance Sheet and Low Leverage

Lower leverage and a stronger equity ratio increase financial flexibility to fund working capital and bid on large turnkey projects. A positive ROE signals recovery in returns, reducing refinancing risk and enabling disciplined investment or targeted M&A over the medium term.

Negative Factors

Negative Free Cash Flow

Material negative free cash flow reflects high working‑capital absorption from long project cycles and milestone timing. Persistently negative FCF constrains reinvestment and debt reduction, forcing reliance on external funding unless cash conversion improves sustainably.

Gross Margin Pressure and FX Headwinds

Gross margin compression driven by regional mix and currency impacts reduces profit per contract. Chronic FX volatility and low‑margin regional projects can erode backlog economics and limit reinvestment in higher‑value services or R&D, pressuring medium‑term profitability.

Thin Profitability and Operational Efficiency Needs

Relatively low gross and net margins despite revenue growth suggest operational inefficiencies and sensitivity to cost overruns on fixed‑price contracts. Without structural improvement in execution and cost control, revenue growth may not translate into durable margin expansion.

ALSTOM UNSP Business Overview & Revenue Model

Company Description

ALSTOM UNSP (ALSMY) is a global leader in the transport sector, specializing in the design and manufacture of rail transport systems, including trains and signaling systems. The company operates in various segments, including rolling stock, services, and infrastructure, providing cutting-edge solutions for urban, suburban, and high-speed rail networks. ALSTOM's core products encompass a wide range of trains, trams, metros, and signaling technology, aimed at enhancing the efficiency and sustainability of public transportation systems worldwide.

How the Company Makes Money

ALSTOM generates revenue primarily through the sale of rolling stock, which includes trains and trams, along with aftermarket services that cover maintenance and parts supply. The company's revenue model is bolstered by long-term contracts with rail operators and governments, ensuring a steady income stream from both new contracts and ongoing service agreements. Significant partnerships with various public transport agencies and collaborations on infrastructure projects further contribute to its earnings. Additionally, ALSTOM invests in research and development to innovate and improve its offerings, which can lead to increased market share and profitability.

ALSTOM UNSP Financial Statement Overview

Summary

ALSTOM UNSP is showing signs of financial improvement with steady revenue growth and a return to profitability. The balance sheet is robust with a healthy equity position, and cash flow metrics are improving, though there is room for better cash management.

Income Statement

ALSTOM UNSP has shown a steady revenue growth rate of approximately 3% in the latest year, indicating a positive trend in sales. The gross profit margin stands at 12.5%, which is moderate, while the net profit margin has improved to 0.8% from negative figures in previous years, reflecting a turnaround in profitability. However, EBIT and EBITDA margins remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.34, indicating a strong equity position relative to its debt. The return on equity is positive at 1.4%, showing a recovery from negative returns in prior years. The equity ratio of 30.3% suggests a solid capital structure, although there is potential for further strengthening.

Cash Flow

ALSTOM UNSP's free cash flow has grown by 18.4%, a positive sign of cash generation. The operating cash flow to net income ratio is 6.5, indicating strong cash flow relative to net income. However, the free cash flow to net income ratio is 3.3, suggesting that while cash flow is improving, there is still a need for better cash management.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	13.92B	18.49B	17.62B	15.47B	8.79B	8.20B
Gross Profit	1.75B	2.30B	2.21B	1.73B	1.39B	1.46B
EBITDA	914.50M	1.26B	762.00M	732.00M	655.00M	819.00M
Net Income	268.00M	149.00M	-309.00M	-576.00M	247.00M	467.00M
Balance Sheet
Total Assets	34.45B	34.59B	33.25B	30.52B	28.57B	13.01B
Cash, Cash Equivalents and Short-Term Investments	1.69B	2.27B	976.00M	810.00M	1.25B	2.17B
Total Debt	3.89B	3.52B	4.66B	3.69B	2.93B	1.64B
Total Liabilities	23.93B	24.01B	24.48B	21.49B	19.45B	9.68B
Stockholders Equity	10.42B	10.46B	8.67B	8.91B	9.04B	3.27B
Cash Flow
Free Cash Flow	-427.00M	490.00M	-567.00M	-1.00B	-720.00M	202.00M
Operating Cash Flow	-58.99M	972.00M	-82.00M	-577.00M	-455.00M	476.00M
Investing Cash Flow	-371.50M	123.00M	-431.00M	-443.00M	-1.94B	-368.00M
Financing Cash Flow	147.62M	244.00M	696.00M	558.00M	1.46B	-1.36B

ALSTOM UNSP Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALSMY, the sentiment is Neutral. The current price of 2.64 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.18, and above the 200-day MA of 2.63, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 3.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALSMY.

ALSTOM UNSP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	74 Outperform	$44.96B	38.70	11.01%	0.46%	4.40%	14.60%
GATX	69 Neutral	$6.58B	20.17	12.63%	1.41%	10.66%	13.61%
GBX	68 Neutral	$1.76B	9.79	12.54%	2.71%	-8.66%	27.14%
ALSMY	66 Neutral	$14.70B	41.71	3.19%	―	6.52%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	62 Neutral	$273.79M	5.80	―	―	-6.18%	―
TRN	56 Neutral	$2.76B	11.20	24.37%	4.34%	-33.03%	-44.18%