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Altus Group Limited (TSE:AIF)
TSX:AIF
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Altus Group
(TSX:AIF)
Rating:72Outperform
Price Target:
C$64.00
▲(22.49% Upside)
Positive Factors
Customer Feedback
Customers we spoke to had positive feedback. Several are long-standing ARGUS customers, and spoke highly of it being the industry standard.
Technological Advancements
Altus Intelligence is leveraging AI to deliver predictive analytics capabilities, which provides a compelling use case for adoption.
Negative Factors
Earnings Visibility
New Bookings are expected to remain under pressure absent a recovery in CRE transaction activity which reduces earnings visibility.
Altus Group (AIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.51B
Dividend Yield1.15%
Average Volume (3M)124.92K
Price to Earnings (P/E)178.1
Beta (1Y)1.02
Revenue Growth-23.26%
EPS Growth-644.01%
CountryCA
Employees2,000
SectorReal Estate
Sector Strength59
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding43,170,610
10 Day Avg. Volume131,325
30 Day Avg. Volume124,925
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$58.00Price Target Upside11.00% Upside
Rating ConsensusHold
Number of Analyst Covering3
Altus Group Business Overview & Revenue Model
Company DescriptionAltus Group Limited (AIF) is a leading provider of software, data solutions, and independent advisory services to the global commercial real estate (CRE) industry. The company operates across various segments, including Altus Analytics, Commercial Real Estate Consulting, and Geomatics. Altus Group's core offerings include real estate valuation, property tax consulting, cost consulting, project management, and software products that deliver critical market intelligence and insights for real estate professionals.
How the Company Makes MoneyAltus Group generates revenue through a combination of software sales, subscription services, and professional consulting fees. The Altus Analytics segment is a significant contributor to revenue, offering software solutions such as ARGUS Enterprise, which provides real estate valuation and portfolio management capabilities. Subscription and maintenance fees from these software products form a stable recurring revenue stream. The Commercial Real Estate Consulting segment earns revenue by providing property tax consulting, valuation, and cost advisory services to real estate owners, investors, and developers. Additionally, the Geomatics segment, though smaller, contributes to revenue through surveying and mapping services. Partnerships with real estate firms and continuous innovation in software solutions further bolster Altus Group's earnings.
Altus Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Altus Group demonstrated strong financial performance with significant profit and margin improvements, recurring revenue growth, and successful new product launches. However, challenges in the CRE transactions and macroeconomic uncertainties present potential risks. The strong cash position and strategic share buybacks underscore financial robustness.Q1-2025 Updates
Positive Updates
Significant Improvement in Profit and Margin
Profit from continuing operations improved by 47%, and adjusted EBITDA was up 29.7%, driving a 280 basis point margin improvement.
Strong Recurring Revenue Growth
Q1 recurring revenue was up 2.1%, with ARGUS Intelligence leading total revenue growth. Recurring new bookings improved by 34.3%.
Successful Launch of Benchmark Manager
Benchmark Manager was launched in Q1, building on the ARGUS Intelligence platform, providing significant industry benchmarking capabilities.
Substantial Share Buyback and Debt Reduction
Deployed $76.3 million towards a share buyback, reducing outstanding shares to 44.4 million, and reduced debt by $127 million.
Strong Cash Position
Improved cash position to $491.9 million and continued strong cash from operations, driven by improvements in working capital.
Negative Updates
Consolidated Revenue Decline
Consolidated revenue was modestly down, impacted by the Appraisals and Development Advisory segment.
Muted CRE Transactions Affecting Revenue
CRE transactions remain muted, leading to lighter revenue than guidance in the Appraisals and Development Advisory segment.
Macro-economic Volatility and Challenges
Potential macroeconomic volatility, particularly surrounding tariffs, could introduce uncertainty in the market.
Flat VMS Growth
VMS growth was modest due to seasonality and the current macroeconomic environment affecting asset deployments.
Company Guidance
During Altus Group's Q1 2025 earnings call, the company provided guidance highlighting several key metrics. Recurring revenue grew by 2.1%, driven by strong ARGUS software performance, while consolidated revenue saw a slight decline due to challenges in the Appraisals and Development Advisory segment. Profit from continuing operations improved by 47%, and adjusted EBITDA increased by 29.7%, resulting in a 280 basis point margin expansion. Cash from operating activities and free cash flow both showed significant growth. The company also achieved a 34.3% increase in recurring new bookings, which included a notable $5 million contribution from a three-year subscription deal with Ryan Tax. Altus Group retired its cloud adoption metric after reaching 90% of users contracted on the cloud. Additionally, restructuring efforts in the Appraisals and Development Advisory segment contributed to a $1.3 million improvement in adjusted EBITDA. The call emphasized the company's commitment to steady margin improvements, strategic product launches like Benchmark Manager, and an optimistic outlook for the back half of 2025, despite macroeconomic uncertainties.Altus Group Financial Statement Overview
Summary
Altus Group presents a stable financial position with strong gross margins and prudent balance sheet management. Despite notable improvements in net income and cash flow, inconsistent revenue growth and historical financial volatility present risks.Income Statement
The company's income statement shows a mixed performance. The TTM gross profit margin is strong at approximately 94%, reflecting efficient cost management. However, the net profit margin is highly inflated due to a substantial net income, likely from non-operational factors. Revenue growth is inconsistent, with a decrease in 2024 followed by a rebound in the TTM period. EBIT and EBITDA margins reveal moderate profitability, indicating room for operational improvements.65
Positive
Balance Sheet
The balance sheet indicates a solid financial position with a low debt-to-equity ratio of 0.22, highlighting conservative leverage. The equity ratio is healthy at about 63.84%, suggesting the company is well-capitalized. However, the return on equity has been volatile, with a significant increase in the TTM period, warranting further investigation into sustainability.72
Positive
Cash Flow
The cash flow statement shows strong free cash flow growth, supported by positive operating cash flow trends. The TTM period exhibits robust free cash flow growth, enhancing liquidity. The operating cash flow to net income ratio is favorable, indicating effective cash generation from operations. However, the historical volatility in cash flows suggests potential risks in maintaining consistent cash generation.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 519.73M | 772.84M | 735.45M | 625.39M | 561.16M |
| Gross Profit | 475.71M | 714.90M | 271.50M | 223.93M | 206.21M |
| EBITDA | 50.23M | 99.36M | 74.95M | 87.38M | 85.91M |
| Net Income | 13.42M | 10.23M | -886.00K | 25.69M | 21.43M |
Balance Sheet | |||||
| Total Assets | 1.25B | 1.21B | 1.26B | 1.20B | 735.40M |
| Cash, Cash Equivalents and Short-Term Investments | 41.88M | 41.89M | 55.27M | 51.27M | 69.64M |
| Total Debt | 319.65M | 355.55M | 378.14M | 358.06M | 186.01M |
| Total Liabilities | 633.74M | 612.16M | 664.02M | 609.84M | 351.95M |
| Stockholders Equity | 617.22M | 602.54M | 599.87M | 589.48M | 383.45M |
Cash Flow | |||||
| Free Cash Flow | 72.47M | 58.94M | 52.60M | 45.68M | 67.95M |
| Operating Cash Flow | 79.92M | 71.43M | 77.08M | 56.31M | 72.30M |
| Investing Cash Flow | 2.77M | -34.92M | -54.06M | -373.31M | -20.90M |
| Financing Cash Flow | -75.62M | -51.78M | -18.66M | 300.43M | -41.30M |
Altus Group Technical Analysis
Negative
52.25
Price Trends
53.95
Negative
52.72
Negative
54.29
Negative
Market Momentum
0.74
Positive
34.81
Neutral
45.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIF, the sentiment is Negative. The current price of 52.25 is below the 20-day moving average (MA) of 55.38, below the 50-day MA of 53.95, and below the 200-day MA of 54.29, indicating a bearish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 34.81 is Neutral, neither overbought nor oversold. The STOCH value of 45.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIF.
Altus Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$1.77B | 7.22 | 19.75% | 0.08% | 16.22% | 39.56% | |
75 Outperform | $12.27B | 62.76 | 12.16% | 0.54% | 20.02% | 78.29% | |
73 Outperform | $10.92B | 70.79 | 8.69% | 0.19% | 20.00% | -23.17% | |
72 Outperform | C$2.51B | 178.14 | 2.13% | 1.15% | -23.26% | -644.01% | |
64 Neutral | C$1.99B | 4.14 | -3.29% | 5.12% | 3.04% | -44.21% | |
58 Neutral | C$1.70B | ― | -23.35% | 0.25% | 7.94% | -12.23% |
* Real Estate Sector Average
Performance Comparison
TSE:AIF
Altus Group
52.25
1.82
3.61%
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FirstService
273.39
42.43
18.37%
TSE:CIGI
Colliers International Group
215.68
32.46
17.71%
TSE:MEQ
Mainstreet Equity
193.61
-3.14
-1.60%
TSE:SVI
Storagevault Canada
4.67
0.15
3.32%
Altus Group Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Altus Group Reports Strong Q2 2025 Financial Performance
Positive
Aug 7, 2025
Altus Group reported its Q2 2025 financial results, highlighting steady growth in recurring revenue and an expansion in adjusted EBITDA margins across all business segments. The launch of ARGUS Intelligence has been a key driver for revenue growth and adoption of asset-based pricing, while the company also executed a significant share buyback, reflecting confidence in its growth trajectory and profitability. The business outlook for the remainder of 2025 includes expectations for continued revenue growth and margin expansion, with a focus on analytics and advisory services.
The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$55.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Altus Group Reports Strong Q1 2025 Financial Results and Expands Share Buyback
Positive
May 8, 2025
Altus Group reported strong financial results for Q1 2025, highlighting resilient recurring revenue and expanded margins across business units. The company launched Benchmark Manager, signed numerous asset-based pricing agreements, and achieved significant software bookings growth, despite a decrease in CRE transaction volumes. Altus Group also returned over $76 million to shareholders through share buybacks, demonstrating its commitment to delivering value to stakeholders. The company maintains its fiscal 2025 guidance, anticipating continued revenue growth and margin expansion, supported by consistent asset growth on its Valuation Management Solutions platform and improved economic conditions in the CRE market.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.