Aroundtown SA (AT1) AI Stock Analysis

• Market Cap: €3.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.73
• Revenue Growth: -3.28%
• EPS Growth: N/A
• Country: DE
• Employees: 1,506
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,537,025,600
• 10 Day Avg. Volume: 1,292,378
• 30 Day Avg. Volume: 1,797,253
• 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: €3.03
• Price Target Upside: 0.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: €3.50 ▲(16.28%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

Debt Management

Aroundtown successfully reapproached debt capital markets with the issuance of corporate bonds and perpetual hybrid bonds, supporting its credit profile.

Office Lettings

The company’s recent office lettings have been encouraging, with several new office lettings and lease extensions signed.

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.

Vacancy Rates

Vacancy rates across Aroundtown’s offices increased by 60 basis points year-over-year to 12.8%, indicating pressure on rental levels.

Aroundtown SA Business Overview & Revenue Model

Company Description

Aroundtown SA is a leading real estate company focused on investing in and managing income-generating properties, primarily in the residential and commercial segments. Operating across various European markets, the company specializes in acquiring, developing, and managing properties in prime urban locations, with a significant presence in Germany and the Netherlands. Aroundtown's portfolio is diversified across office, hotel, and residential sectors, emphasizing sustainable growth and value creation for stakeholders.

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
EBITDA	701.70M	-2.60B	712.40M	642.20M	562.80M
Net Income	256.30M	-1.83B	-457.10M	1.08B	741.30M
Balance Sheet
Total Assets	33.62B	33.56B	37.35B	39.38B	31.02B
Cash, Cash Equivalents and Short-Term Investments	3.89B	3.13B	3.08B	3.74B	3.34B
Total Debt	14.70B	14.55B	14.94B	15.74B	11.97B
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: Positive
• Last Price: 3.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.01 is below the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.84, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:AT1.

Aroundtown SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEQ	77 Outperform	€1.49B	12.09	6.26%	13.56%	-7.84%	―
AT1	72 Outperform	€3.29B	14.59	2.91%	―	-3.28%	―
TEG	67 Neutral	€2.56B	23.67	3.56%	2.76%	-22.37%	―
GYC	67 Neutral	€1.82B	8.27	6.27%	―	-1.22%	―
PAT	66 Neutral	€712.51M	53.48	1.19%	3.64%	-7.62%	―
LEG	64 Neutral	€5.50B	21.55	3.32%	3.71%	3.25%	―
Sector *	63 Neutral	$6.99B	18.83	-1.16%	6.86%	4.65%	-25.28%