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Atlas Arteria (AU:ALX)
:ALX

Atlas Arteria (ALX) AI Stock Analysis

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AU

Atlas Arteria

(OTC:ALX)

Rating:72Outperform
Price Target:
AU$6.00
▲(12.15%Upside)
Atlas Arteria's stock is supported by strong technical analysis and a high dividend yield, making it attractive despite valuation concerns. Financial performance shows operational strengths but highlights the need for improved cash flow and profitability metrics. The absence of recent earnings call data leaves some uncertainty.

Atlas Arteria (ALX) vs. iShares MSCI Australia ETF (EWA)

Atlas Arteria Business Overview & Revenue Model

Company DescriptionAtlas 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 MoneyAtlas Arteria makes money primarily through the collection of toll revenues from vehicles using its road networks. The company's key revenue streams include toll collections, which are based on the volume of traffic and the rates set for different vehicle types. Additionally, the company may generate income from service area leases and advertising along its roadways. Atlas Arteria's earnings are influenced by factors such as traffic growth, economic conditions, and regulatory environments. Strategic partnerships with local governments and infrastructure entities are also significant in facilitating operations and expansion opportunities.

Atlas Arteria Financial Statement Overview

Summary
Atlas Arteria shows strong revenue growth and high gross profit margins, indicating operational efficiency. However, challenges in EBIT performance and significant drop in free cash flow present concerns. The balance sheet is stable with moderate leverage, but there is room for improvement in shareholder returns.
Income Statement
75
Positive
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
65
Positive
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
60
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
145.00M134.00M118.24M100.52M104.56M
Gross Profit
138.70M16.40M116.00K-9.05M-13.55M
EBIT
-8.10M-5.10M-23.35M-24.91M-30.69M
EBITDA
106.30M425.70M63.07M-11.95M-93.68M
Net Income Common Stockholders
335.90M323.50M266.96M163.70M-99.21M
Balance SheetCash, Cash Equivalents and Short-Term Investments
351.50M305.30M275.90M229.39M260.34M
Total Assets
8.26B8.04B8.33B5.22B5.27B
Total Debt
1.85B1.72B1.74B1.65B1.55B
Net Debt
1.50B1.42B1.46B1.42B1.29B
Total Liabilities
1.95B1.81B1.84B1.72B1.63B
Stockholders Equity
3.34B6.24B6.49B3.50B3.63B
Cash FlowFree Cash Flow
92.10M712.80M473.14M38.56M24.00M
Operating Cash Flow
93.20M713.60M473.50M40.03M25.44M
Investing Cash Flow
633.00M631.70M-3.01B304.05M-976.67M
Financing Cash Flow
-683.80M-673.00M2.58B-374.71M-232.73M

Atlas Arteria Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.35
Price Trends
50DMA
5.13
Positive
100DMA
4.97
Positive
200DMA
4.79
Positive
Market Momentum
MACD
0.06
Positive
RSI
61.32
Neutral
STOCH
65.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALX, the sentiment is Positive. The current price of 5.35 is above the 20-day moving average (MA) of 5.28, above the 50-day MA of 5.13, and above the 200-day MA of 4.79, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 65.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALX.

Atlas Arteria Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUALX
72
Outperform
AU$7.76B28.194.45%7.48%8.88%7.47%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
DE1K1
€4.28B30.697.24%2.39%
$3.50B12.249.38%4.22%
$29.13B586.790.68%4.52%
AUDBI
78
Outperform
AU$2.00B22.977.48%5.82%19.38%10.66%
AUKLS
74
Outperform
AU$887.95M17.025.35%4.89%22.28%50.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALX
Atlas Arteria
5.35
1.02
23.64%
DE:1K1
Qube Holdings
2.36
0.23
10.80%
QRNNF
Aurizon Holdings
1.78
-0.50
-21.93%
TRAUF
Transurban Group
9.33
1.31
16.33%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
3.79
1.07
39.34%
AU:KLS
Kelsian Group Limited
3.15
-1.58
-33.40%

Atlas Arteria Corporate Events

Atlas Arteria Appoints New Joint Company Secretary
May 27, 2025

Atlas Arteria has announced the appointment of Ms. Elisha Larkin as Joint Company Secretary, effective June 3, 2025. This strategic appointment, alongside Mr. Clayton McCormack, aims to enhance the company’s communication with the ASX, potentially strengthening its governance and operational transparency.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Issues New Performance Rights to Employees
May 23, 2025

Atlas Arteria announced the issuance of 759,565 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to align employee interests with company performance, potentially enhancing operational efficiency and stakeholder value.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 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
May 23, 2025

Atlas Arteria announced a change in the director’s interest, with Hugh Wehby acquiring 654,884 Performance Rights under the company’s Long Term Incentive Plan. This move, approved at the 2025 AGM, reflects the company’s commitment to aligning its leadership’s interests with long-term strategic goals, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria’s APRR Secures €500 Million in Eurobond Issuance
May 19, 2025

Atlas Arteria announced that its subsidiary APRR has successfully priced €500 million in Eurobonds under its Euro Medium Term Note Programme. The bonds, with a 5.6-year term and a 2.875% coupon, will mature in January 2031, and the proceeds will be used for general corporate purposes. This issuance reflects strong market confidence in APRR and enhances its liquidity position, indicating a positive impact on the company’s financial stability and market standing.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

IFM Group Increases Stake in Atlas Arteria
May 19, 2025

Diamond Infraco 1 Pty Ltd, on behalf of the IFM Group, has increased its voting power in Atlas Arteria from 29.88% to 32.58%, reflecting a significant change in its substantial holding. This increase in stake could potentially enhance the influence of the IFM Group over Atlas Arteria’s strategic decisions, impacting the company’s operational direction and possibly affecting shareholder dynamics.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Amends Constitution Following Shareholder Approval
May 16, 2025

Atlas Arteria announced an amendment to the constitution of Atlas Arteria Limited, following approval by securityholders at the recent Annual General Meeting. This change reflects the company’s ongoing commitment to governance and operational efficiency, potentially impacting its strategic positioning and stakeholder relations.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Amends Bye-Laws Following Securityholder Approval
May 16, 2025

Atlas Arteria International Limited has amended its Bye-Laws following approval from securityholders at the recent Annual General Meeting. This amendment reflects the company’s ongoing commitment to governance and operational adjustments, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Announces AGM Resolution Results
May 15, 2025

Atlas Arteria announced the results of resolutions from its Annual General Meetings for Atlas Arteria Limited and Atlas Arteria International Limited, which were decided by a poll. This announcement reflects the company’s ongoing commitment to transparency and governance, potentially impacting its operational strategies and stakeholder relations.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.66 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Focuses on Sustainable Growth at 2025 AGM
May 15, 2025

Atlas Arteria held its 2025 Annual General Meetings, where the Chair and CEO addressed securityholders. The company continues to focus on disciplined management and sustainable practices to enhance its toll road operations across France, Germany, and the United States. This strategic focus aims to strengthen its market position and deliver long-term value to stakeholders.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.55 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Announces Change in Company Secretary
May 1, 2025

Atlas Arteria announced the resignation of Mr. Paul Lynch as Joint Company Secretary, effective May 2, 2025. Mr. Clayton McCormack will continue as the sole Company Secretary, ensuring compliance with ASX communication requirements. This change in company secretarial roles is part of the company’s ongoing governance and operational management, potentially impacting its administrative efficiency and stakeholder communications.

Atlas Arteria Faces Bond Rating Downgrade Amid Toll Uncertainties
Apr 24, 2025

Atlas Arteria announced that S&P Global Ratings downgraded the underlying rating of Toll Road Investors Partnership II, L.P.’s long-term senior unsecured bonds from ‘BB-‘ to ‘B+’, with a negative outlook due to uncertainties surrounding toll increases. Despite the downgrade, there will be no breach or default under TRIP II’s financing documents, and the interest rate on the bonds remains unaffected.

Atlas Arteria Reports Q1 2025 Revenue Growth and Leadership Changes
Apr 22, 2025

Atlas Arteria reported an increase in both traffic and toll revenue for Q1 2025, with a 1.6% rise in traffic and a 6.1% increase in toll revenue compared to the same period in 2024. This growth was attributed to the rebound in traffic at APRR following previous disruptions, toll increases, and favorable foreign exchange movements. Additionally, the company announced leadership changes, appointing Mr. Luis Tejerina as CEO of the Chicago Skyway and initiating a search for a new CEO at Dulles Greenway, highlighting a strategic focus on strengthening leadership in key areas.

Atlas Arteria Announces Cessation of Performance Rights
Apr 14, 2025

Atlas Arteria has announced the cessation of 277,757 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, as it reflects on the company’s operational targets and performance metrics.

Atlas Arteria Announces Issuance of Unquoted Securities
Apr 10, 2025

Atlas Arteria announced the issuance and conversion of unquoted equity securities, with a total of 50,047 securities being issued. This move is part of the company’s ongoing financial strategies to enhance its capital structure, potentially impacting its market positioning and offering implications for its stakeholders.

Atlas Arteria Releases 2025 AGM Materials
Apr 7, 2025

Atlas Arteria has released materials related to its 2025 Annual General Meetings, including a letter from the chairs, AGM notices, and a proxy form. These documents are available on the company’s website. This announcement signifies the company’s ongoing commitment to transparency and stakeholder engagement, potentially impacting its operational strategies and investor relations.

Atlas Arteria Releases 2024 Sustainability Report Emphasizing Long-term Value and Environmental Commitment
Apr 3, 2025

Atlas Arteria has released its 2024 Sustainability Report, highlighting its continued commitment to sustainable operations and community benefits through its toll road projects. The report underscores the company’s strategic focus on reducing environmental impact and enhancing travel efficiency, which is expected to strengthen its market position and provide long-term value to stakeholders.

Atlas Arteria Announces Change in Substantial Holder Interests
Apr 1, 2025

Atlas Arteria has announced a change in the interests of a substantial holder, State Street Corporation and its subsidiaries, which now hold a 6.72% voting power in the company. This change reflects the company’s ongoing adjustments in its shareholder structure, potentially impacting its governance and strategic decisions.

Atlas Arteria Announces H2 2024 Distribution
Mar 19, 2025

Atlas Arteria announced a distribution of 20.0 Australian cents per stapled security for the second half of 2024, aligning with previous guidance. This distribution, to be paid by Atlas Arteria International Limited, is an unfranked dividend, with key dates set for trading, record, and payment. This announcement underscores Atlas Arteria’s commitment to delivering consistent returns to its investors, potentially strengthening its market position and investor confidence.

Atlas Arteria Announces New Dividend Distribution
Mar 19, 2025

Atlas Arteria has announced a new dividend distribution of AUD 0.20 per security, covering the six-month period ending December 31, 2024. The ex-dividend date is set for March 25, 2025, with a record date of March 26, 2025, and payment scheduled for April 4, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and may influence its market positioning by reinforcing investor confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.