ALSTOM UNSP (ALSMY) AI Stock Analysis

• Market Cap: $12.47B
• Dividend Yield: N/A
• Average Volume (3M): 20.95K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.59
• 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: 1.10
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 7.87
• Enterprise Value/Ebitda: 15.05
• 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): $22.23B

• 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

Strong Order Book / Book-to-Bill

A book-to-bill above 1 with EUR 10.5bn orders provides multi-year revenue visibility and production load. Large contracted backlog reduces near-term demand risk, supports steady factory utilization and service follow-ons, and underpins durable top-line conversion over months.

Consistent Organic Sales Growth

Broad-based 7.9% organic growth across product lines and regions indicates diversified commercial momentum. Cross-segment growth lowers reliance on any single market, supports recurring service revenue, and signals sustainable demand for rolling stock and signaling over the medium term.

Stronger Balance Sheet and Low Leverage

Low leverage and a solid equity ratio give the company financial flexibility to fund large, long-cycle contracts and absorb execution timing. A healthier balance sheet reduces refinancing risk and supports investment in manufacturing capacity and services long-term.

Negative Factors

Negative Free Cash Flow

A large negative FCF reflects cash absorption from working capital and project timing, constraining liquidity and forcing reliance on financing or balance sheet buffers. Persistent negative cash conversion can limit reinvestment, dividend capacity, and increase funding costs over months.

Low Profitability and Margin Pressure

Moderate gross margins and a very slim net margin mean earnings are sensitive to cost overruns and contract execution. Structural low operating margins reduce the firm's ability to self-fund growth, make returns vulnerable to inflation, and require sustained efficiency gains to improve durability.

Regional Mix & FX Squeezing Margins

Margin compression from regional mix and a ~3.3pt FX headwind indicates recurring external pressures on profitability. For long-cycle, fixed-price contracts, sustained currency shifts and adverse regional pricing can meaningfully erode contract economics unless hedging or pricing adjustments are implemented.

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: Negative
• Last Price: 2.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: 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 2.64 is below the 20-day moving average (MA) of 3.13, below the 50-day MA of 3.16, and below the 200-day MA of 2.66, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 5.21 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	74 Outperform	$40.58B	31.11	10.77%	0.46%	4.40%	14.60%
GBX	68 Neutral	$1.60B	9.50	12.27%	2.71%	-8.66%	27.14%
ALSMY	66 Neutral	$12.47B	14.35	3.19%	―	6.52%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GATX	61 Neutral	$5.94B	18.22	12.47%	1.41%	10.66%	13.61%
TRN	56 Neutral	$2.44B	8.44	24.45%	4.34%	-33.03%	-44.18%
RAIL	53 Neutral	$152.59M	9.24	-40.20%	―	-6.18%	―