Alstom SA (ALO) AI Stock Analysis

• Market Cap: €10.20B
• Dividend Yield: 1.24%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 6.21%
• EPS Growth: -128.82%
• Country: FR
• Employees: 78,684
• Sector: Industrials
• Sector Strength: 82
• Industry: Railroads
• EPS (TTM): -0.63
• Shares Outstanding: 461,510,530
• 10 Day Avg. Volume: 956,413
• 30 Day Avg. Volume: 1,274,451
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €24.14
• Price Target Upside: 9.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Alstom SA faces significant challenges with profitability and cash flow, which heavily impact its financial performance. Technical analysis indicates mixed signals with possible short-term stability but underlying bearish momentum. Valuation is problematic due to negative earnings. Overall, the stock exhibits financial and operational weaknesses that overshadow its revenue growth.

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, including trains, metros, and trams, which form the core of its product offerings. Additionally, the company earns significant income from providing maintenance services, signaling systems, and turnkey transportation solutions, which often involve long-term contracts. Alstom also benefits from strategic partnerships and collaborations with governments and other transportation authorities worldwide, which help secure large-scale infrastructure projects, contributing to its earnings. Furthermore, its focus on digital and sustainable technologies aligns with global trends towards greener transport solutions, providing additional revenue growth opportunities.

Alstom SA Financial Statement Overview

Summary

Alstom SA shows revenue growth but struggles with profitability and cash flow. Negative net income and free cash flow indicate operational inefficiencies. Although leverage is moderate, the increased reliance on debt and negative ROE are concerning.

Income Statement

Alstom SA has experienced inconsistent revenue growth. The revenue growth rate from 2023 to 2024 was 6.73%, following a 6.69% increase from 2022 to 2023. However, profitability metrics are concerning. The net profit margin remains negative, at -1.75% in 2024, showing deterioration from -0.78% in 2023. The gross profit margin improved slightly to 12.56%, while EBIT and EBITDA margins stand at 2.81% and 4.32%, respectively. Overall, the company shows growth in revenue but struggles with profitability.

Balance Sheet

The balance sheet of Alstom SA shows a relatively stable equity position with a slight decline in stockholders' equity from 2023 to 2024. The debt-to-equity ratio increased to 0.54, indicating a higher reliance on debt financing. Return on Equity (ROE) is negative for 2024, reflecting the negative net income. The equity ratio is stable at around 26.08%. The company's leverage is moderate, but the negative ROE highlights profitability concerns.

Cash Flow

Alstom SA's cash flow situation is challenging, with negative free cash flow of -€567 million in 2024. Operating cash flow decreased significantly to -€82 million, indicating operational challenges. The Free Cash Flow to Net Income Ratio is not meaningful due to negative values, and the Operating Cash Flow to Net Income Ratio is also negative. These factors suggest difficulties in generating cash from operations, raising concerns about liquidity and financial flexibility.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
17.62B	16.51B	15.47B	8.79B	8.20B
	Gross Profit
2.21B	1.97B	1.73B	1.39B	1.46B
	EBIT
496.00M	264.00M	103.00M	417.00M	557.00M
	EBITDA
762.00M	766.00M	732.00M	655.00M	819.00M
	Net Income Common Stockholders
-309.00M	-128.00M	-576.00M	247.00M	467.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
976.00M	826.00M	810.00M	1.25B	2.17B
	Total Assets
33.25B	31.40B	30.52B	28.57B	13.01B
	Total Debt
4.66B	3.70B	3.69B	2.93B	1.64B
	Net Debt
3.68B	2.87B	2.88B	1.68B	-537.00M
	Total Liabilities
24.48B	22.29B	21.49B	19.45B	9.68B
	Stockholders Equity
8.67B	9.00B	8.91B	9.04B	3.27B
Cash Flow		Free Cash Flow
-567.00M	175.00M	-1.00B	-720.00M	202.00M
	Operating Cash Flow
-82.00M	606.00M	-577.00M	-455.00M	476.00M
	Investing Cash Flow
-431.00M	-478.00M	-443.00M	-1.94B	-368.00M
	Financing Cash Flow
696.00M	-61.00M	558.00M	1.46B	-1.36B

Alstom SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 22.11 is above the 20-day moving average (MA) of 20.30, above the 50-day MA of 21.26, and above the 200-day MA of 20.04, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.41 is Negative, 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
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
ALO	48 Neutral	€10.20B	―	-2.71%	1.24%	6.21%	-128.82%