Atlas Arteria (ALX) AI Stock Analysis

• Market Cap: $6.96B
• Dividend Yield: 8.33%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.65
• Revenue Growth: 9.78%
• EPS Growth: 0.19%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.07
• Shares Outstanding: 1,450,833,700
• 10 Day Avg. Volume: 3,242,708
• 30 Day Avg. Volume: 2,698,714
• PEG Ratio: 4.51
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 47.53
• P/FCF Ratio: 74.83
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 77.02
• Enterprise Value/Gross Profit: 214.95
• Enterprise Value/Ebitda: 124.79
• 1Y Price Target: $5.49
• Price Target Upside: 14.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: AU$5.50 ▲(14.58% Upside)

Atlas Arteria's overall stock score is driven by strong revenue growth and gross profitability, offset by challenges in EBIT performance and cash flow stability. The technical analysis indicates bearish momentum, while the valuation reflects a high P/E ratio balanced by a strong dividend yield.

Atlas Arteria Business Overview & Revenue Model

Company Description

Atlas Arteria Limited owns, develops, and operates toll roads. It holds a 13.4% interest in 22-kilometer toll road investors partnership II (TRIP II), the concessionaire for Dulles Greenway toll road located in Virginia, the United States. The company was formerly known as Macquarie Atlas Roads Limited and changed its name to Atlas Arteria Limited in May 2018. Atlas Arteria Limited was incorporated in 2009 and is based in Melbourne, Australia.

How the Company Makes Money

Atlas Arteria makes money primarily through the collection of tolls from vehicles using its road infrastructure. The company's revenue model is based on long-term concession agreements that grant it the right to operate and collect tolls on these roads. Key revenue streams include toll revenues generated from passenger cars and commercial vehicles, which are subject to periodic adjustments based on traffic volumes, inflation, and other economic factors. Additionally, Atlas Arteria benefits from strategic partnerships with local governments and infrastructure entities, which can influence its operational efficiency and profitability. The company's earnings are also impacted by its ability to manage and optimize its road assets, ensuring they remain attractive and convenient for users.

Atlas Arteria Financial Statement Overview

Summary

Atlas Arteria shows strong revenue growth and gross profit margin, but faces challenges with EBIT performance and cash flow stability. The balance sheet is stable with moderate leverage, though there are opportunities to enhance shareholder returns.

Income Statement

Atlas Arteria shows a solid performance in revenue growth, with a notable increase from $134 million to $145 million. The company maintains a high gross profit margin of 95.7%, indicating strong operational efficiency. However, the lack of EBIT suggests areas for improvement in operational profitability. EBITDA margin remains robust at over 306%, reflecting strong cash generation capabilities despite EBIT challenges.

Balance Sheet

The balance sheet presents a mixed picture with a healthy equity base of $3.34 billion, leading to an equity ratio of 40.4%. The debt-to-equity ratio of 0.55 is moderate, suggesting a balanced capital structure. However, ROE of 10.1% could be improved to enhance shareholder returns. The company's leverage and equity position are stable but warrant attention for future growth.

Cash Flow

Cash flow analysis reveals a significant drop in free cash flow from $712.8 million to $92.1 million, posing concerns over cash sustainability. Operating cash flow to net income ratio is unavailable, limiting insights into core cash generation. However, the company has positive free cash flow, indicating some level of financial flexibility. Improving cash flow consistency will be crucial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.15M	145.00M	134.00M	118.24M	100.52M	104.56M
Gross Profit	40.90M	138.70M	16.40M	116.00K	-9.05M	-13.55M
EBITDA	70.45M	106.30M	425.70M	63.07M	-11.95M	-93.68M
Net Income	214.70M	335.90M	323.50M	266.96M	163.70M	-99.21M
Balance Sheet
Total Assets	7.96B	8.26B	8.04B	8.33B	5.22B	5.27B
Cash, Cash Equivalents and Short-Term Investments	290.40M	351.50M	305.30M	521.66M	229.39M	260.34M
Total Debt	1.70B	1.85B	1.72B	1.74B	1.65B	1.55B
Total Liabilities	1.84B	1.95B	1.81B	1.84B	1.72B	1.63B
Stockholders Equity	6.12B	3.34B	6.24B	6.49B	3.50B	3.63B
Cash Flow
Free Cash Flow	430.55M	92.10M	712.80M	473.14M	38.56M	24.00M
Operating Cash Flow	431.45M	93.20M	84.70M	473.50M	40.03M	25.44M
Investing Cash Flow	-1.20M	633.00M	631.70M	-3.01B	304.05M	-976.67M
Financing Cash Flow	-680.20M	-683.80M	-682.10M	2.58B	-374.71M	-232.73M

Atlas Arteria Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.80
• 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 AU:ALX, the sentiment is Negative. The current price of 4.8 is below the 20-day moving average (MA) of 4.97, below the 50-day MA of 5.04, and below the 200-day MA of 4.85, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 29.86 is Positive, neither overbought nor oversold. The STOCH value of 4.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ALX.

Atlas Arteria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLS	72 Outperform	AU$1.36B	25.05	5.78%	3.47%	9.52%	-8.76%
DBI	71 Outperform	AU$2.20B	25.10	8.17%	5.18%	13.19%	14.79%
AZJ	65 Neutral	$5.67B	19.24	7.03%	4.89%	3.01%	-23.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALX	61 Neutral	$6.96B	30.14	3.78%	8.33%	9.78%	0.19%
QUB	60 Neutral	€7.47B	65.63	3.82%	2.32%	28.47%	-50.19%
TCL	52 Neutral	AU$43.79B	328.50	1.24%	4.62%	-4.30%	-59.47%

Atlas Arteria Corporate Events

Atlas Arteria Announces Issuance of Unquoted Securities

Atlas Arteria has announced the issuance and conversion of 22,879 unquoted equity securities, effective from September 5, 2025. This move signifies a strategic financial adjustment potentially impacting the company’s capital structure and market positioning, reflecting its ongoing efforts to optimize shareholder value and operational efficiency.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.35 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Announces Director’s Interest Change

Atlas Arteria has announced a change in the director’s interest notice, specifically regarding Hugh Wehby, a director of ATLAX. The change involves the vesting of restricted stapled securities and rights under the company’s incentive plans, which were initially granted to compensate Mr. Wehby for forfeiting incentives from his previous employer. This adjustment reflects the company’s ongoing commitment to aligning its leadership’s interests with its strategic goals, potentially impacting its operational focus and stakeholder relations.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.35 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Director Increases Stake in Company

Atlas Arteria announced a change in the director’s interest, with Andrew Cook, a director of Atlas Arteria International Limited, acquiring 1,680 additional ALX ordinary stapled securities through an on-market trade. This acquisition increases his total holdings to 46,430 securities, reflecting a continued confidence in the company’s performance and potential growth, which could positively influence stakeholder perceptions and market positioning.

The most recent analyst rating on (AU:ALX) stock is a Buy with a A$5.70 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.