Atlas Arteria (ALX) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: 7.74%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.72
• Revenue Growth: 8.88%
• EPS Growth: 7.47%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.27
• Shares Outstanding: 1,450,833,700
• 10 Day Avg. Volume: 1,600,605
• 30 Day Avg. Volume: 2,389,655
• PEG Ratio: 1.41
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.18
• 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: $5.48
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: AU$5.50 ▲(6.38%Upside)

Atlas Arteria's overall stock score reflects strong revenue growth and operational efficiency, tempered by challenges in EBIT performance and cash flow stability. The stock's fair valuation and attractive dividend yield provide a balance of growth potential and income, while technical indicators suggest cautious short-term sentiment.

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 high gross profit margin, indicating operational efficiency. However, challenges in EBIT performance and a significant drop in free cash flow highlight concerns over profitability and cash sustainability. The balance sheet is stable with moderate leverage, though ROE could be improved.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.00M	134.00M	118.24M	100.52M	104.56M
Gross Profit	138.70M	16.40M	116.00K	-9.05M	-13.55M
EBITDA	106.30M	425.70M	63.07M	-11.95M	-93.68M
Net Income	335.90M	323.50M	266.96M	163.70M	-99.21M
Balance Sheet
Total Assets	8.26B	8.04B	8.33B	5.22B	5.27B
Cash, Cash Equivalents and Short-Term Investments	351.50M	305.30M	275.90M	229.39M	260.34M
Total Debt	1.85B	1.72B	1.74B	1.65B	1.55B
Total Liabilities	1.95B	1.81B	1.84B	1.72B	1.63B
Stockholders Equity	3.34B	6.24B	6.49B	3.50B	3.63B
Cash Flow
Free Cash Flow	92.10M	712.80M	473.14M	38.56M	24.00M
Operating Cash Flow	93.20M	713.60M	473.50M	40.03M	25.44M
Investing Cash Flow	633.00M	631.70M	-3.01B	304.05M	-976.67M
Financing Cash Flow	-683.80M	-673.00M	2.58B	-374.71M	-232.73M

Atlas Arteria Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.17 is above the 20-day moving average (MA) of 5.10, below the 50-day MA of 5.20, and above the 200-day MA of 4.88, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALX	66 Neutral	$7.44B	27.19	4.45%	7.74%	8.88%	7.47%
Sector *	58 Neutral	HK$14.94B	4.73	-2.78%	5.01%	3.80%	-54.55%
1K1	―	€4.28B	31.21	7.24%	2.28%	―	―
QRNNF	―	$3.76B	12.07	9.38%	2.92%	―	―
TRAUF	―	$27.82B	571.38	0.68%	4.55%	―	―
KLS	78 Outperform	AU$1.03B	20.26	5.35%	4.59%	22.28%	50.12%
DBI	69 Neutral	AU$2.27B	27.33	7.48%	4.92%	19.38%	10.66%

Atlas Arteria Corporate Events

Atlas Arteria’s Dulles Greenway Toll Rate Application Denied by Virginia Supreme Court

Atlas Arteria announced that the Supreme Court of Virginia upheld the State Corporation Commission’s decision to deny Toll Road Investors Partnership II’s toll rate application for the Dulles Greenway. This decision allows TRIP II’s federal case, which alleges constitutional violations, to proceed. TRIP II plans to submit a new rate application this year, indicating ongoing efforts to address toll rate issues.

The most recent analyst rating on (AU:ALX) stock is a Buy with a A$6.16 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Atlas Arteria Announces Cessation of Performance Rights

Atlas Arteria announced the cessation of 14,634 performance rights due to the conditions for these securities not being met by the specified date. This announcement may impact the company’s financial structure and could have implications for stakeholders, as it reflects on the company’s performance metrics and conditional securities management.

The most recent analyst rating on (AU:ALX) stock is a Hold with a A$5.30 price target. To see the full list of analyst forecasts on Atlas Arteria stock, see the AU:ALX Stock Forecast page.

Vanguard Group Reduces Stake in Atlas Arteria

Atlas Arteria Limited, a company involved in infrastructure and transport, announced that The Vanguard Group, Inc. and its controlled entities have ceased to be substantial holders in the company as of June 20, 2025. This change in holding reduces Vanguard’s voting power to 4.809%, potentially impacting the company’s shareholder dynamics and influence in decision-making processes.

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 Appoints New Joint Company Secretary

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

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

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

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

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

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

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

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

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

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.