Alstom SA (ALO) AI Stock Analysis

• Market Cap: €10.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 71.6
• Beta (1Y): 1.17
• Revenue Growth: 4.94%
• EPS Growth: N/A
• Country: FR
• Employees: 78,684
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.25
• Shares Outstanding: 462,029,970
• 10 Day Avg. Volume: 1,029,301
• 30 Day Avg. Volume: 1,141,369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €23.92
• Price Target Upside: 9.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: €22.50 ▲(3.31% Upside)

Alstom SA's overall stock score reflects a positive financial turnaround with improved revenue growth, profitability, and cash flow recovery. However, technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the stock's attractiveness. The score is primarily driven by financial performance and technical analysis, with valuation concerns weighing down the overall assessment.

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 through several key streams, including the sale of rolling stock (trains, trams, and metros), signaling systems, and maintenance services. The company typically engages in long-term contracts with transportation authorities and operators, which provide a steady income through the delivery and servicing of rail systems. Additionally, Alstom benefits from partnerships with various governments and private enterprises, enabling it to secure large-scale projects. The company's focus on sustainable technologies, such as electrification and hydrogen-powered trains, positions it favorably in the growing market for green transportation solutions. Furthermore, ongoing investments in R&D allow Alstom to innovate and offer competitive products that meet evolving regulatory and consumer demands, contributing to its overall revenue generation.

Alstom SA Financial Statement Overview

Summary

Alstom SA shows a positive turnaround in financial performance for 2025, with revenue growth and improved profitability. The balance sheet reflects a stable equity position and reduced leverage, enhancing financial stability. Cash flow recovery supports liquidity, though high liabilities and historical cash flow volatility remain concerns.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.49B	18.49B	17.62B	16.51B	15.47B	8.79B
Gross Profit	2.30B	2.30B	2.21B	1.97B	1.73B	1.39B
EBITDA	1.26B	1.26B	762.00M	766.00M	732.00M	655.00M
Net Income	149.00M	149.00M	-309.00M	-128.00M	-576.00M	247.00M
Balance Sheet
Total Assets	34.59B	34.59B	33.25B	31.40B	30.52B	28.57B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.27B	976.00M	826.00M	810.00M	1.25B
Total Debt	3.52B	3.52B	4.66B	3.70B	3.69B	2.93B
Total Liabilities	24.01B	24.01B	24.48B	22.29B	21.49B	19.45B
Stockholders Equity	10.46B	10.46B	8.67B	9.00B	8.91B	9.04B
Cash Flow
Free Cash Flow	490.00M	490.00M	-567.00M	175.00M	-1.00B	-720.00M
Operating Cash Flow	972.00M	972.00M	-82.00M	606.00M	-577.00M	-455.00M
Investing Cash Flow	123.00M	123.00M	-431.00M	-478.00M	-443.00M	-1.94B
Financing Cash Flow	244.00M	244.00M	696.00M	-61.00M	558.00M	1.46B

Alstom SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.78
• 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 FR:ALO, the sentiment is Neutral. The current price of 21.78 is below the 20-day moving average (MA) of 22.12, above the 50-day MA of 21.46, and above the 200-day MA of 20.67, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 66.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ALO.

Alstom SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FGR	―	€10.70B	10.72	14.39%	4.41%	7.71%	-2.82%
AIR	―	$164.95B	33.27	23.80%	1.42%	7.05%	54.89%
DG	―	€67.77B	14.31	16.66%	4.09%	3.21%	4.24%
EN	―	€15.69B	14.83	8.75%	5.05%	1.26%	4.64%
SAF	―	€126.90B	29.46	35.36%	0.95%	14.19%	161.87%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALO	―	€10.09B	71.62	1.54%	―	4.94%	―