ALTAREA (ALTA) AI Stock Analysis

• Market Cap: €2.55B
• Dividend Yield: 7.27%
• Average Volume (3M): 13.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -4.87%
• EPS Growth: 97.55%
• Country: FR
• Employees: 2,129
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.43
• Shares Outstanding: 23,302,605
• 10 Day Avg. Volume: 7,912
• 30 Day Avg. Volume: 13,455
• PEG Ratio: -3.31
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 5.13
• 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: €107.00
• Price Target Upside: -2.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €105.00 ▼(-3.85% Downside)

ALTAREA's overall score is driven by a positive financial performance with improved profitability and cash flow. However, technical indicators suggest bearish momentum, and the negative P/E ratio raises valuation concerns. The high dividend yield is a positive aspect for income investors.

Positive Factors

Improved Profitability

The company's improved profitability in 2024 indicates effective cost management and operational efficiency, enhancing its long-term financial health.

Strong Cash Flow Generation

Robust free cash flow growth supports strategic investments and debt reduction, strengthening ALTAREA's financial position over the long term.

Stable Balance Sheet

A stable balance sheet with a solid equity ratio provides financial resilience and the capacity to weather economic fluctuations.

Negative Factors

Slow Revenue Growth

Sluggish revenue growth may limit ALTAREA's ability to capitalize on market opportunities and could hinder long-term expansion efforts.

Moderate Leverage

While leverage is manageable, reliance on debt could pose risks if interest rates rise or if cash flow generation weakens.

Challenges in Consistent Profitability

Inconsistent profitability may affect investor confidence and limit the company's ability to reinvest in growth initiatives.

ALTAREA Business Overview & Revenue Model

Company Description

Altarea is the leading real estate developer from France. Both a developer and an investor, the Group is present in the three main real estate markets (Retail, Housing and Business real estate), enabling it to be the leader in major mixed urban renewal projects in France. For each of its activities, the Group has all the know-how to design, develop, market and manage tailor-made real estate products. Altarea is listed on compartment A of Euronext Paris and is part of the SBF 120 index.

How the Company Makes Money

ALTAREA generates revenue primarily through the development and sale of residential and commercial properties. The company engages in property development projects, which include acquiring land, obtaining necessary permits, and constructing buildings for sale or lease. A significant revenue stream comes from the leasing of retail and office spaces in their developed properties, providing a consistent income source. Additionally, ALTAREA benefits from asset management fees for managing real estate investments on behalf of third parties. Strategic partnerships with local governments and other stakeholders in urban development projects also play a crucial role in their earnings, as these collaborations often lead to favorable project opportunities and financial incentives.

ALTAREA Financial Statement Overview

Summary

ALTAREA shows a positive turnaround in 2024 with improved profitability and strong cash flow generation. The balance sheet is stable, though moderately leveraged. Continued focus on revenue growth and profitability is crucial.

Income Statement

ALTAREA's income statement shows a recovery in 2024 with a positive net income, reversing the loss from 2023. The gross profit margin improved to 21.8% from 20.2% in 2023, and the EBIT margin turned positive at 7.3%. However, the revenue growth rate was modest at 2.2%, suggesting slow growth. Despite positive trends, the company faces challenges with maintaining consistent profitability.

Balance Sheet

ALTAREA's balance sheet indicates stability with a debt-to-equity ratio of 1.62, reflecting manageable leverage. The return on equity (ROE) improved significantly to 0.36% in 2024 from negative in 2023, showing better utilization of shareholder funds. The equity ratio increased to 20.2%, indicating a stable capital structure, although reliance on debt remains notable.

Cash Flow

Cash flow analysis reveals strong free cash flow growth in 2024, with free cash flow surging to €400.4 million from €112.6 million in 2023. The operating cash flow to net income ratio is robust at 70.8, signaling efficient cash generation from operations. However, potential risks include fluctuating investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.71B	2.71B	3.03B	2.81B	3.07B
Gross Profit	585.60M	590.40M	465.90M	352.00M	351.80M	337.80M
EBITDA	252.90M	218.50M	-98.70M	397.70M	337.20M	356.60M
Net Income	-11.20M	6.10M	-472.90M	74.40M	72.20M	69.40M
Balance Sheet
Total Assets	7.84B	8.40B	8.34B	4.28B	4.48B	4.20B
Cash, Cash Equivalents and Short-Term Investments	357.70M	804.10M	713.10M	952.30M	1.63B	1.28B
Total Debt	2.51B	2.74B	2.68B	1.31B	1.69B	4.07B
Total Liabilities	4.88B	5.24B	5.12B	3.13B	3.40B	3.20B
Stockholders Equity	1.53B	1.69B	1.75B	1.10B	2.24B	949.80M
Cash Flow
Free Cash Flow	406.60M	400.40M	320.20M	-22.40M	33.70M	294.90M
Operating Cash Flow	432.70M	432.30M	330.50M	-20.60M	43.60M	312.90M
Investing Cash Flow	-59.30M	-20.70M	63.60M	-43.10M	-19.50M	12.70M
Financing Cash Flow	-474.90M	-301.50M	-438.80M	-504.60M	137.80M	172.80M

ALTAREA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.20
• 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:ALTA, the sentiment is Positive. The current price of 109.2 is above the 20-day moving average (MA) of 104.75, above the 50-day MA of 102.04, and above the 200-day MA of 100.20, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 69.17 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALTA.

ALTAREA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARM	80 Outperform	€2.37B	6.76	―	7.41%	16.69%	574.43%
GFC	69 Neutral	€5.86B	11.51	4.93%	6.35%	3.84%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FLY	63 Neutral	―	―	―	―	1.66%	―
COV	61 Neutral	€6.04B	14.37	5.11%	6.40%	8.36%	―
ALTA	58 Neutral	€2.55B	-212.04	-0.71%	7.27%	-4.87%	97.55%
ICAD	52 Neutral	€1.58B	-8.61	-4.49%	20.27%	-6.91%	80.39%