Alstom SA (ALO) AI Stock Analysis

• Market Cap: €11.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.18
• Revenue Growth: 4.58%
• EPS Growth: N/A
• Country: FR
• Employees: 78,684
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.48
• Shares Outstanding: 462,029,970
• 10 Day Avg. Volume: 1,029,301
• 30 Day Avg. Volume: 1,141,369
• PEG Ratio: -0.41
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 18.12
• 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: €24.68
• Price Target Upside: -3.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €26.00 ▲(1.76% Upside)

Alstom SA's overall stock score is driven by strong technical indicators and a positive financial performance turnaround. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Alstom's products and services, supporting long-term market position and expansion.

Cash Flow Recovery

Improved cash flow enhances liquidity and operational flexibility, enabling Alstom to invest in growth opportunities and manage debt.

Balance Sheet Strength

A strong balance sheet with reduced leverage and increased equity supports financial stability and resilience against economic fluctuations.

Negative Factors

High Liabilities

High liabilities can limit financial flexibility and increase vulnerability to economic downturns, impacting long-term growth prospects.

Low Profit Margins

Low profit margins may constrain profitability and limit reinvestment capacity, challenging Alstom's ability to enhance shareholder value.

Cash Flow Volatility

Cash flow volatility can affect Alstom's ability to consistently fund operations and strategic initiatives, posing risks to financial stability.

Alstom SA Business Overview & Revenue Model

Company Description

Alstom SA offers solutions for rail transport industry in Europe, the Americas, Asia and Pacific, the Middle East, and Africa. The company offers rolling stock solutions for people movers and monorails, light rails, metros, commuter trains, regional and intercity trains, high-speed trains, and locomotives; asset optimization, connectivity, digital passenger, and security and city mobility solutions; and signaling products, such as urban, mainline, and freight and mining signaling. It also provides tram, metro, and main line systems; and tracklaying and track solutions, catenary free and ground feeding solutions, electrification solutions, and electromechanical equipment. In addition, the company provides maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors and generators, switchgears, auxiliary converters, traction transformers, brake friction, components propulsion, train control and information systems, and dispen dampers. The company was incorporated in 1992 and is based in Saint-Ouen, France.

How the Company Makes Money

Alstom generates revenue primarily through the sale of rolling stock, which includes locomotives, high-speed trains, suburban trains, and trams. Additionally, the company earns income from signaling systems and railway infrastructure projects. A significant portion of its revenue comes from long-term contracts and service agreements, which include maintenance, upgrades, and parts supply for existing rail systems. Alstom's revenue model is bolstered by strategic partnerships with various governments and private sector clients worldwide, allowing it to secure large-scale projects and contribute to public transportation initiatives. Moreover, the company benefits from ongoing investments in research and development, leading to innovative solutions that meet the evolving demands of the transportation sector.

Alstom SA Financial Statement Overview

Summary

Alstom SA demonstrates a positive turnaround in financial performance for 2025, with improvements across income, balance sheet, and cash flow metrics. Revenue growth and profitability have improved, with a positive net profit margin and better operational efficiency. The balance sheet shows a stable equity position and reduced leverage, enhancing financial stability. Robust cash flow recovery supports liquidity and operational flexibility. Despite these gains, maintaining consistent performance and addressing high liabilities remain challenges for sustained growth.

Income Statement

The income statement shows positive revenue growth with a 4.94% increase in 2025 compared to 2024. Gross profit margin improved to 12.46% from 12.56% in 2024, indicating stable profitability. Net profit margin turned positive at 0.81%, a significant improvement from the previous year's negative margin. EBIT and EBITDA margins also improved to 3.57% and 6.80% respectively, showcasing better operational efficiency. However, the company's margins are still relatively low, indicating room for further improvement.

Balance Sheet

The balance sheet reveals a solid equity base with a steady increase in stockholders' equity to €10.46 billion in 2025. The debt-to-equity ratio decreased to 0.34, showing a conservative leverage position. The equity ratio improved to 30.25%, reflecting a stronger financial position. Return on equity turned positive at 1.42%, indicating better return generation for shareholders. However, the company's total liabilities remain high, posing potential risks.

Cash Flow

Cash flow analysis indicates a substantial recovery in operating cash flow to €972 million in 2025, a notable improvement from a negative flow in 2024. Free cash flow turned positive at €490 million, reflecting improved cash generation capabilities. The free cash flow to net income ratio stands at 3.29, suggesting efficient cash conversion. However, historical volatility in cash flow remains a concern.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.77B	18.49B	16.51B	17.62B	15.47B	8.79B
Gross Profit	2.36B	2.30B	1.97B	2.21B	1.73B	1.39B
EBITDA	1.42B	1.26B	766.00M	762.00M	732.00M	655.00M
Net Income	316.00M	149.00M	-128.00M	-309.00M	-576.00M	247.00M
Balance Sheet
Total Assets	34.45B	34.59B	31.40B	33.25B	30.52B	28.57B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.27B	826.00M	976.00M	810.00M	1.25B
Total Debt	4.64B	3.52B	3.70B	4.66B	3.69B	2.93B
Total Liabilities	24.68B	24.01B	22.29B	24.48B	21.49B	19.45B
Stockholders Equity	9.67B	10.46B	9.00B	8.67B	8.91B	9.04B
Cash Flow
Free Cash Flow	-111.00M	490.00M	175.00M	-567.00M	-1.00B	-720.00M
Operating Cash Flow	382.00M	972.00M	606.00M	-82.00M	-577.00M	-455.00M
Investing Cash Flow	-521.00M	123.00M	-478.00M	-431.00M	-443.00M	-1.94B
Financing Cash Flow	80.00M	244.00M	-61.00M	696.00M	558.00M	1.46B

Alstom SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.55
• 50DMA: Positive
• 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 FR:ALO, the sentiment is Positive. The current price of 25.55 is above the 20-day moving average (MA) of 25.04, above the 50-day MA of 23.41, and above the 200-day MA of 21.20, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALO.

Alstom SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FGR	76 Outperform	€12.17B	12.19	14.39%	3.87%	7.71%	-2.82%
DG	76 Outperform	€67.48B	14.38	16.66%	3.96%	3.21%	4.24%
EN	76 Outperform	€17.32B	16.42	8.45%	4.51%	0.88%	-2.06%
AIR	68 Neutral	€170.25B	33.53	22.66%	1.53%	7.05%	54.98%
ALO	67 Neutral	€11.80B	37.69	3.25%	―	4.58%	―
SAF	67 Neutral	€130.56B	30.70	35.36%	0.97%	14.19%	161.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%