Riverstone Holdings (AP4) AI Stock Analysis

• Market Cap: S$1.36B
• Dividend Yield: 9.12%
• Average Volume (3M): 4.77M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.39
• Revenue Growth: 4.74%
• EPS Growth: -17.18%
• Country: SG
• Employees: 3,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.01
• Shares Outstanding: 1,484,904,000
• 10 Day Avg. Volume: 8,088,999
• 30 Day Avg. Volume: 4,774,049
• PEG Ratio: 0.69
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 23.28
• 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: S$0.98
• Price Target Upside: 18.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$1.00 ▲(20.48% Upside)

Riverstone Holdings' strong profitability and robust balance sheet are key strengths, contributing significantly to its score. The stock's positive technical indicators and attractive valuation further enhance its appeal. However, challenges with declining revenue and free cash flow are risks that need addressing.

Positive Factors

Balance Sheet Health

A strong balance sheet with minimal leverage reduces financial risk and enhances the company's ability to sustain operations long-term.

Profitability

High profitability margins indicate efficient operations and the ability to generate substantial profits, supporting long-term financial health.

Cash Generation Ability

Efficient cash generation relative to net income ensures liquidity and financial flexibility, crucial for sustaining growth and operations.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand and invest in new opportunities, impacting long-term competitiveness.

Free Cash Flow Decline

A significant decline in free cash flow growth may limit the company's ability to fund operations and investments, affecting future growth.

Revenue Challenges

Addressing revenue and cash flow challenges is critical to maintaining financial health and supporting sustainable long-term growth.

Riverstone Holdings Business Overview & Revenue Model

Company Description

Riverstone Holdings (AP4) is a leading investment firm specializing in the energy, infrastructure, and natural resources sectors. The company focuses on identifying and investing in high-quality assets with strong growth potential and sustainable value creation. Riverstone's core services include private equity investments, fund management, and advisory services, catering to a diverse range of clients including institutional investors and family offices.

How the Company Makes Money

Riverstone Holdings generates revenue primarily through its private equity investments, which involve acquiring stakes in companies within the energy and infrastructure sectors. The firm earns management fees from the funds it manages, typically a percentage of the total assets under management (AUM). Additionally, it collects performance fees, known as carried interest, which are earned when the investments exceed predetermined return thresholds. Strategic partnerships with industry leaders and other investment firms enhance Riverstone's deal flow and co-investment opportunities, further driving its revenue growth. The company's focus on sustainable investments and renewable energy projects also positions it well to capitalize on growing market trends and regulatory incentives.

Riverstone Holdings Financial Statement Overview

Summary

Riverstone Holdings shows strong profitability and a robust balance sheet with minimal leverage, which are significant strengths. However, challenges with declining revenue growth and free cash flow need to be addressed to ensure long-term financial health.

Income Statement

Riverstone Holdings has experienced a decline in revenue growth, with a negative growth rate of -19.2% TTM. However, the company maintains strong profitability metrics, with a net profit margin of 22.73% and an EBIT margin of 28.52% TTM. The gross profit margin has decreased slightly over the periods but remains healthy. The company needs to address the declining revenue trend to improve its income statement performance.

Balance Sheet

The balance sheet of Riverstone Holdings is robust, with a very low debt-to-equity ratio of 0.00016 TTM, indicating minimal leverage and financial risk. The return on equity is solid at 15.54% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at a strong level, reflecting a stable financial position. The company is well-positioned to manage its liabilities and sustain operations.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth at -210.4% TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 2.94, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also reasonable at 0.69 TTM. The company needs to focus on improving its free cash flow generation to enhance its cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.07B	914.78M	1.26B	3.08B	1.83B
Gross Profit	341.27M	390.09M	295.51M	450.32M	1.91B	897.61M
EBITDA	375.38M	423.63M	339.81M	479.91M	1.91B	896.45M
Net Income	244.04M	286.93M	220.38M	314.40M	1.42B	647.25M
Balance Sheet
Total Assets	1.63B	1.78B	1.83B	2.02B	2.70B	1.69B
Cash, Cash Equivalents and Short-Term Investments	602.26M	716.29M	863.18M	1.04B	1.57B	648.94M
Total Debt	240.00K	494.00K	1.02M	0.00	1.58M	8.06M
Total Liabilities	175.24M	202.29M	143.62M	166.84M	367.15M	329.67M
Stockholders Equity	1.46B	1.58B	1.68B	1.85B	2.33B	1.36B
Cash Flow
Free Cash Flow	220.30M	227.16M	197.36M	282.63M	1.41B	601.73M
Operating Cash Flow	317.72M	306.99M	249.07M	416.04M	1.57B	702.71M
Investing Cash Flow	-94.72M	-79.61M	-51.46M	-133.15M	-155.91M	-99.13M
Financing Cash Flow	-341.38M	-363.62M	-415.53M	-801.95M	-451.19M	-79.52M

Riverstone Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 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 SG:AP4, the sentiment is Positive. The current price of 0.83 is below the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.82, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AP4.

Riverstone Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AP4	73 Outperform	S$1.36B	18.48	14.10%	9.12%	4.74%	-17.18%
C9Q	53 Neutral	S$127.68M	5.54	2.82%	―	-17.82%	-75.83%
DU4	53 Neutral	S$230.67M	21.03	5.18%	―	2.00%	-28.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
8K7	48 Neutral	S$59.89M	―	-2.33%	―	25.06%	37.11%
BTP	48 Neutral	S$105.50M	―	-5.60%	3.85%	-40.02%	-176.13%