Aroundtown SA (AT1) AI Stock Analysis

• Market Cap: €2.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.80
• Revenue Growth: -1.35%
• EPS Growth: N/A
• Country: DE
• Employees: 1,506
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 1,537,025,600
• 10 Day Avg. Volume: 1,398,798
• 30 Day Avg. Volume: 1,807,235
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 5.18
• 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: €3.13
• Price Target Upside: 36.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): €1.57B

• Rating: 58 Neutral
• Price Target: €2.50 ▲(9.17% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven mainly by a mid-tier financial profile: strong TTM rebound and positive free cash flow are offset by significant earnings volatility, material leverage, and a sharp TTM decline in free cash flow. Technicals are a headwind with the stock below key moving averages and weak momentum, while valuation is a support due to the very low P/E.

Positive Factors

Recurring rental income model

Aroundtown's core business is long-term rental income from leased investment properties supported by active asset management and selective disposals. That model generates predictable, contractually-backed cash flows and provides durable operating cash to fund maintenance, capex and debt service over months.

Solid absolute cash generation (TTM)

Despite cyclical swings, trailing-twelve-month cash generation in absolute terms is substantial. Near-term ability to produce hundreds of millions of euros in operating and free cash flow supports debt servicing, recurring capex and selective acquisitions or disposals, underpinning operational resilience.

Scale in major urban markets and diversified assets

Concentration in major cities and a mix of offices, hotels and residential assets gives structural demand advantages—better liquidity, tenant depth and re-leasing markets. Active leasing, refurbishments and selective transactions allow the company to extract value and preserve occupancy long term.

Negative Factors

Material leverage

Leverage at roughly one times equity makes the business highly interest-rate and refinancing sensitive. High gross debt elevates vulnerability to cost-of-capital shifts and limits financial flexibility, increasing the risk that cash flow shocks force disposals or tightened liquidity over months.

Pronounced earnings volatility

The pattern of steep losses followed by a rebound shows earnings are materially affected by valuation swings and one-off items. This volatility reduces predictability of recurring profits and makes it harder to rely on reported margins for planning, dividend policy, and debt coverage assessments.

Sharp free cash flow decline and limited coverage

An ~87% TTM fall in free cash flow and operating cash flow covering only ~0.25x of total debt indicate weakening cash conversion versus obligations. That deterioration constrains deleveraging capacity and raises refinancing risk if cash generation does not stabilize or recover.

Aroundtown SA Business Overview & Revenue Model

Company Description

Aroundtown SA, together with its subsidiaries, operates as a real estate company in Germany, the Netherlands, the United Kingdom, Belgium, and internationally. It invests in commercial and residential real estate properties, such as office, hotel, logistics, wholesale, retail, and other properties. The company was formerly known as Aroundtown Property Holdings PLC and changed its name to Aroundtown SA in September 2017. Aroundtown SA was founded in 2004 and is based in Luxembourg City, Luxembourg.

How the Company Makes Money

Aroundtown makes money mainly from recurring rental income generated by leasing space in its investment properties (primarily offices, as well as hotels and other assets) to tenants under contractual lease agreements. This rental revenue is supported by property and asset management activities (leasing, tenant retention, rent indexation/escalations where applicable, and capital expenditures intended to sustain occupancy and rental levels). A second important source of earnings comes from value creation and capital recycling: the company can sell properties (or interests in properties) and realize disposal proceeds and potential gains when assets are sold above their carrying value or cost basis; it may also benefit from increases in the fair value of its investment properties (revaluation gains), which can affect reported profit. Aroundtown may also generate income related to hotel real estate structures (e.g., rent from hotel operators under lease agreements) rather than operating hotels directly; if any direct hotel operating income exists, specific details are not available here and are therefore null. Financing strategy influences net earnings: the company typically uses debt financing for real estate investments, so interest expense and hedging can materially impact profitability, but the underlying cash generation primarily comes from rents and, secondarily, from property sales and valuation movements.

Aroundtown SA Financial Statement Overview

Summary

TTM shows a strong rebound (revenue +7.4%) with very high reported margins and positive free cash flow, but multi-year results have been highly volatile (large losses in 2022–2023 followed by a sharp rebound). Leverage is meaningful (debt-to-equity ~1.07) and free cash flow is down ~87% TTM with low operating cash flow versus total debt (~0.25), keeping the profile mid-tier.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 7.4% and profitability looks very strong on the surface, with high gross margin (~61%) and net margin (~75%). However, results have been volatile across annual periods (notably large losses in 2022–2023 followed by a sharp rebound in 2024–TTM), which reduces confidence in the sustainability and quality of earnings.

Balance Sheet

The balance sheet is asset-heavy with meaningful leverage: total debt is ~€19.1B against ~€8.0B of equity in TTM (debt-to-equity ~1.07). Returns improved in TTM (return on equity ~8.3%) versus weaker/negative levels in several prior years, but leverage remains a key risk factor for a real-estate business, especially given the earnings volatility seen historically.

Cash Flow

Cash generation is solid in absolute terms (TTM operating cash flow ~€797M; free cash flow ~€776M), and free cash flow closely tracks reported profit in TTM. The main concern is trend: free cash flow growth is negative in TTM (down ~87%), and operating cash flow relative to total debt is low (~0.25), indicating debt is sizable versus annual cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54B	1.18B	1.19B	1.61B	1.32B
Gross Profit	976.40M	630.70M	554.40M	915.00M	790.20M
EBITDA	1.08B	701.70M	-2.60B	712.40M	642.20M
Net Income	871.50M	256.30M	-1.83B	-457.10M	1.08B
Balance Sheet
Total Assets	33.69B	33.62B	33.56B	37.35B	39.38B
Cash, Cash Equivalents and Short-Term Investments	3.68B	3.89B	3.13B	3.08B	3.74B
Total Debt	19.12B	14.70B	14.55B	14.94B	15.74B
Total Liabilities	22.62B	18.61B	18.41B	19.52B	20.23B
Stockholders Equity	8.01B	12.17B	12.40B	14.33B	15.28B
Cash Flow
Free Cash Flow	559.10M	801.20M	541.70M	761.60M	-174.40M
Operating Cash Flow	579.50M	820.50M	557.90M	788.00M	625.80M
Investing Cash Flow	181.50M	152.60M	523.80M	408.50M	1.08B
Financing Cash Flow	-273.00M	-495.90M	-753.00M	-1.76B	-2.61B

Aroundtown SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AT1, the sentiment is Negative. The current price of 2.29 is below the 20-day moving average (MA) of 2.62, below the 50-day MA of 2.71, and below the 200-day MA of 2.99, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:AT1.

Aroundtown SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEQ	72 Outperform	€1.50B	14.94	7.34%	28.14%	-6.87%	―
GYC	70 Outperform	€1.51B	3.69	11.82%	―	0.44%	―
PAT	67 Neutral	€585.46M	45.83	―	4.33%	0.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LEG	63 Neutral	€4.13B	3.20	18.02%	4.45%	6.91%	―
AT1	58 Neutral	€2.50B	3.33	7.69%	―	-1.35%	―
TEG	56 Neutral	€2.42B	25.57	12.35%	3.08%	-32.32%	―