Alstom SA (ALO) AI Stock Analysis

• Market Cap: €9.16B
• Dividend Yield: 1.24%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 65.0
• Beta (1Y): 1.32
• Revenue Growth: 4.94%
• EPS Growth: N/A
• Country: FR
• Employees: 78,684
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 0.25
• Shares Outstanding: 462,029,970
• 10 Day Avg. Volume: 1,236,835
• 30 Day Avg. Volume: 1,262,522
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: €21.20
• Price Target Upside: 6.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: €21.00 ▲(5.95%Upside)

Alstom SA's stock is rated at 63, primarily driven by its financial performance improvements, including revenue growth and profitability. Technical analysis shows potential for a bullish reversal, while valuation concerns arise due to a high P/E ratio and lack of dividend yield. Maintaining consistent financial performance and managing liabilities are key to future 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 SA generates revenue through the sale of its wide range of products and services in the rail transport sector. The company's key revenue streams include the manufacturing and sale of rolling stock, such as trains and trams, and the provision of signaling systems and infrastructure solutions. Additionally, Alstom offers maintenance and modernization services for existing transport systems, which provide a steady stream of income. The company has significant partnerships and contracts with governments and private entities worldwide, contributing to its earnings. Furthermore, Alstom's emphasis on innovation and sustainability enables it to capitalize on the growing demand for eco-friendly and efficient transport solutions.

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

Alstom SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALO, the sentiment is Negative. The current price of 19.82 is below the 20-day moving average (MA) of 20.57, above the 50-day MA of 19.77, and below the 200-day MA of 20.55, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 10.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALO.

Alstom SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$2.59B	11.48	10.94%	3.89%	-1.27%	39.22%
ALO	63 Neutral	€9.16B	65.04	1.54%	1.24%	4.94%	―
EADSF	―	$154.90B	29.74	23.80%	1.70%	―	―
0HAN	―	€13.79B	13.06	8.75%	5.24%	―	―
0NPT	―	€11.21B	10.45	15.80%	4.00%	―	―
0IU8	―	€116.82B	62.29	-6.13%	1.05%	―	―
0NQM	―	€66.35B	14.27	16.66%	3.85%	―	―