Aroundtown SA (AT1) AI Stock Analysis

• Market Cap: €3.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.72
• Revenue Growth: -3.28%
• EPS Growth: N/A
• Country: DE
• Employees: 1,506
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,537,025,600
• 10 Day Avg. Volume: 1,813,274
• 30 Day Avg. Volume: 1,905,479
• PEG Ratio: 0.04
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.18
• 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: €2.96
• Price Target Upside: 4.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 72 Outperform
• Price Target: €3.50 ▲(24.11%Upside)

The overall stock score of 72 reflects a strong financial recovery and positive technical trends. The company's improved profitability and cash flow management are significant strengths. However, revenue contraction and high leverage remain concerns. While the stock shows bullish technical indicators, the valuation suggests it is not significantly undervalued. The absence of a dividend yield also limits its appeal to income investors.

Positive Factors

Asset Management

Aroundtown signed for €935m of asset disposals 'around book value', demonstrating effective asset management.

Debt Management

Aroundtown has undertaken debt management initiatives to reduce perpetual notes and achieve a coupon reduction.

Liquidity

The company had cash and liquid assets of EUR3.6bn at the end of 2024, potentially covering all debt maturities until 2026.

Negative Factors

Credit Rating

The review of S&P's rating of BBB+ with a negative outlook on the company is still pending, creating significant uncertainty for the stock.

Interest Rates

Further strongly increasing interest rates pose a risk for the company given its still elevated leverage.

Leverage

Leverage remains elevated and the company hasn’t decided on dividend payout yet.

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 SA generates revenue primarily through rental income from its extensive portfolio of commercial and residential properties. The company invests in high-quality, strategically located assets that provide stable and recurring rental streams. In addition to rental income, Aroundtown enhances its earnings through active asset management, including property development, renovations, and value-add initiatives that increase asset value and cash flow. The company may also engage in strategic property sales to optimize its portfolio and realize capital gains. Significant partnerships with local and international investors, as well as financial institutions, further support Aroundtown's growth and profitability by providing capital and leveraging market opportunities.

Aroundtown SA Financial Statement Overview

Summary

Aroundtown SA demonstrated resilience in 2024 with a recovery in profitability and improved cash flow generation. The company has shown effective cost management and operational efficiency. However, revenue contraction and high leverage are areas of concern. The company must focus on sustainable revenue growth and maintaining a balanced capital structure to enhance financial health.

Income Statement

Aroundtown SA's financial performance showed notable recovery in profitability metrics in 2024, with a net profit margin of 21.71% following a loss in 2023. However, revenue has been declining, evidenced by a 0.99% decrease in 2024 from the previous year. The gross profit margin improved significantly to 53.41% in 2024, indicating efficient cost management. EBIT and EBITDA margins also rebounded after negative figures in 2023, reflecting improved operational efficiency but highlighting volatility in earnings.

Balance Sheet

The company maintains a relatively stable balance sheet with a debt-to-equity ratio of 1.21 in 2024, slightly up from 1.17 in 2023, indicating moderate leverage. The equity ratio stands at 36.20%, reflecting a solid equity base. Return on equity improved significantly to 21.06% in 2024 from a negative 14.79% in 2023, suggesting a more efficient use of shareholder funds. There is a need to monitor debt levels to ensure long-term financial stability.

Cash Flow

Operating cash flow increased to €820.5 million in 2024, supporting a strong cash generation capability. The free cash flow to net income ratio is robust, indicating the company's ability to convert profits into cash. Free cash flow grew by 47.88% from 2023 to 2024, showcasing significant improvement in cash flow management. However, the company's financing activities remain a concern with consistent cash outflows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.18B	1.19B	1.61B	1.32B	1.18B
	Gross Profit
630.70M	554.40M	915.00M	790.20M	737.70M
	EBIT
758.50M	-2.47B	852.50M	1.74B	1.65B
	EBITDA
701.70M	-2.60B	712.40M	642.20M	562.80M
	Net Income Common Stockholders
256.30M	-1.83B	-457.10M	1.08B	741.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.89B	3.13B	3.08B	3.74B	3.34B
	Total Assets
33.62B	33.56B	37.35B	39.38B	31.02B
	Total Debt
14.70B	14.55B	14.94B	15.74B	11.97B
	Net Debt
11.58B	11.91B	12.64B	12.86B	9.27B
	Total Liabilities
18.61B	18.41B	19.52B	20.23B	15.44B
	Stockholders Equity
12.17B	12.40B	14.33B	15.28B	13.56B
Cash Flow		Free Cash Flow
801.20M	541.70M	761.60M	-174.40M	579.50M
	Operating Cash Flow
820.50M	557.90M	788.00M	625.80M	615.80M
	Investing Cash Flow
152.60M	523.80M	408.50M	1.08B	1.01B
	Financing Cash Flow
-495.90M	-753.00M	-1.76B	-2.61B	-1.63B

Aroundtown SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AT1, the sentiment is Neutral. The current price of 2.82 is below the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.68, and above the 200-day MA of 2.73, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:AT1.

Aroundtown SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AT1	72 Outperform	€3.08B	13.66	2.91%	―	-3.28%	―
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0I3Z		€1.53B	12.33	6.26%	13.05%	―	―
0QC9		€5.25B	20.97	3.32%	3.81%	―	―
0FJC		€686.76M	51.27	1.19%	4.27%	―	―
0JK4		€2.52B	23.33	3.56%	2.80%	―	―
GYC	65 Neutral	€1.78B	8.07	6.27%	―	-1.22%	―