ALTAREA (ALTA) AI Stock Analysis

• Market Cap: €2.38B
• Dividend Yield: 7.81%
• Average Volume (3M): 12.67K
• Price to Earnings (P/E): 352.9
• Beta (1Y): 0.76
• 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: 22,227
• 30 Day Avg. Volume: 12,668
• 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: €107.00
• Price Target Upside: 4.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: €107.00 ▲(4.49% Upside)

ALTAREA's overall score is driven by its financial performance, showing a positive turnaround with improved profitability and cash flow. However, technical indicators suggest potential bearish momentum, and the valuation is challenged by a negative P/E ratio, despite a high dividend yield.

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 through various channels, primarily from the sale and leasing of its real estate properties. Key revenue streams include residential sales from newly developed housing units, rental income from commercial and residential properties, and fees from property management services. The company also engages in partnerships with local governments and private entities for urban development projects, which can provide additional income sources. Furthermore, ALTAREA may benefit from market trends such as rising property values and increased demand for sustainable developments, which can enhance its profitability.

ALTAREA Financial Statement Overview

Summary

ALTAREA shows a positive financial turnaround in 2024, with improved profitability and strong cash flow generation. The balance sheet reflects stability, though moderate leverage persists. The income statement indicates a return to profitability, aided by enhanced profit margins, but revenue growth remains modest.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.71B	2.65B	2.73B	2.81B	2.84B
Gross Profit	590.40M	534.70M	352.00M	351.80M	337.80M
EBITDA	218.50M	-297.50M	139.40M	172.80M	166.30M
Net Income	6.10M	-472.90M	74.40M	72.20M	69.40M
Balance Sheet
Total Assets	8.40B	8.34B	4.28B	4.48B	4.20B
Cash, Cash Equivalents and Short-Term Investments	804.10M	559.20M	880.50M	1.38B	1.19B
Total Debt	2.74B	2.68B	1.31B	1.69B	1.45B
Total Liabilities	5.24B	5.12B	3.13B	3.40B	3.20B
Stockholders Equity	1.69B	1.75B	1.10B	1.03B	949.80M
Cash Flow
Free Cash Flow	400.40M	112.60M	-22.40M	33.70M	294.90M
Operating Cash Flow	432.30M	112.60M	-20.60M	43.60M	312.90M
Investing Cash Flow	-20.70M	63.60M	-43.10M	-19.50M	12.70M
Financing Cash Flow	-301.50M	-438.80M	-504.60M	137.80M	172.80M

ALTAREA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 102.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALTA, the sentiment is Neutral. The current price of 102.4 is below the 20-day moving average (MA) of 102.81, below the 50-day MA of 104.90, and above the 200-day MA of 97.75, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 15.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ALTA.

ALTAREA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARM	78 Outperform	€2.45B	6.99	9.19%	7.17%	16.69%	574.43%
COV	71 Outperform	€6.30B	14.99	0.83%	6.19%	8.36%	―
GFC	62 Neutral	€6.18B	12.15	2.95%	6.09%	3.84%	―
FLY	61 Neutral	€3.08B	13.36	5.68%	3.98%	1.66%	―
ALTA	58 Neutral	€2.38B	352.90	-0.71%	7.81%	-4.87%	97.55%
ICAD	55 Neutral	€1.60B	-8.56	-6.38%	20.41%	-6.91%	80.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%