Altus Group (AIF) AI Stock Analysis

• Market Cap: C$2.37B
• Dividend Yield: 1.1%
• Average Volume (3M): 194.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -27.10%
• EPS Growth: -2415.77%
• Country: CA
• Employees: 2,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.38
• Shares Outstanding: 43,176,838
• 10 Day Avg. Volume: 142,115
• 30 Day Avg. Volume: 194,582
• PEG Ratio: 7.32
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 35.38
• 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: C$57.20
• Price Target Upside: 5.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: C$59.00 ▲(8.54% Upside)

Altus Group's overall score reflects strong financial stability and strategic initiatives to enhance shareholder value. However, challenges in revenue growth and valuation concerns weigh on the score. The company's proactive corporate strategies and positive earnings call developments are significant strengths, while technical indicators suggest caution in the short term.

Positive Factors

Recurring Revenue Growth

The growth in recurring revenue, particularly from ARGUS Intelligence, indicates strong customer retention and a reliable income stream, enhancing long-term business stability.

Margin Expansion

Margin expansion reflects improved operational efficiency and cost management, which can lead to enhanced profitability and competitive positioning over time.

Strong Cash Flow Generation

Increased cash flow from operations indicates robust financial health, providing the company with resources for reinvestment and debt reduction, supporting long-term growth.

Negative Factors

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and affect employee morale, potentially impacting long-term strategic execution and company culture.

Softer Segment Performance

Weak performance in key segments like Appraisals and Development Advisory can hinder overall revenue growth, affecting the company's market position and profitability.

Guidance Revision

Downward revision of guidance reflects challenges in achieving growth targets, which can impact investor confidence and long-term strategic planning.

Altus Group Business Overview & Revenue Model

Company Description

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate industry in Canada, the United States, Europe, and the Asia Pacific. It operates through Altus Analytics and Commercial Real Estate Consulting (CRE Consulting) segments. The Altus Analytics segment offers ARGUS Enterprise, a commercial property valuation and asset management software; ARGUS Taliance, a real estate fund and alternative investment management software; ARGUS EstateMaster, a property development feasibility and management software; and ARGUS Developer, a real estate development pro forma and management software solution; ARGUS Voyanta, a powerful data aggregation, validation, and reporting software solution; ARGUS Acquire, a real estate acquisition deals and pipeline management software; and ARGUS ValueInsight, a commercial real estate valuation software. This segment also offers data subscription products that provide real estate information on the residential, office, industrial, and investment markets; and advisory and managed services. This segment serves equity and debt investors, valuers and appraisers, brokers, developers, banks, and public entities. The CRE Consulting segment offers real estate property tax services, including assessment reviews, management, and appeals, as well as personal property, and state and local tax advisory services; valuation services, such as appraisals of real estate portfolios, valuation of properties, due diligence, litigation, and economic consulting services; and construction feasibility study, budgeting, cost and loan monitoring, and project management services to owner operators, developers, financial institutions, and CRE asset holders and investors. The company was founded in 2005 and is headquartered in Toronto, Canada.

How the Company Makes Money

Altus Group generates revenue through a multi-faceted model that includes software subscriptions, professional services, and data solutions. The company's key revenue streams are derived from the sale of its cloud-based software products, such as Argus Enterprise, which is widely used for real estate management and valuation. Additionally, Altus Group earns income from consulting services that assist clients with property assessment, investment analysis, and market research. The company also benefits from data licensing and analytics services, providing valuable insights to real estate professionals. Strategic partnerships with industry leaders further bolster Altus Group's revenue, enabling them to expand their market reach and enhance their service offerings.

Altus Group Financial Statement Overview

Summary

Altus Group demonstrates strong profitability and a solid equity base, with efficient cost management reflected in high gross margins. However, declining revenue and free cash flow growth pose challenges. The company maintains a conservative leverage position, enhancing financial stability, but must address sales growth to sustain long-term performance.

Income Statement

The income statement shows a strong gross profit margin of 94.05% for TTM, indicating efficient cost management. However, the net profit margin is significantly lower at 64.92%, suggesting high non-operating income. Revenue has declined by 12.55% in TTM, indicating potential challenges in sales growth. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but with room for improvement.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.22 in TTM, showing conservative leverage. The return on equity is exceptionally high at 57.11% for TTM, driven by substantial net income. The equity ratio stands at 65.42%, indicating a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 14.76% in TTM, which could impact future liquidity. The operating cash flow to net income ratio is 0.30, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is robust at 92.76%, indicating strong cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	524.54M	519.73M	509.73M	735.45M	625.39M	561.16M
Gross Profit	192.44M	183.40M	169.21M	271.50M	223.93M	206.21M
EBITDA	83.08M	60.15M	33.57M	94.87M	85.23M	88.64M
Net Income	395.84M	13.42M	10.23M	-886.00K	25.69M	21.43M
Balance Sheet
Total Assets	1.24B	1.25B	1.21B	1.26B	1.20B	735.40M
Cash, Cash Equivalents and Short-Term Investments	382.71M	41.88M	41.89M	55.27M	51.27M	69.64M
Total Debt	200.28M	319.65M	355.55M	378.14M	358.06M	186.01M
Total Liabilities	429.16M	633.74M	612.16M	664.02M	609.84M	351.95M
Stockholders Equity	812.71M	617.22M	602.54M	599.87M	589.48M	383.45M
Cash Flow
Free Cash Flow	66.09M	72.47M	58.94M	52.60M	45.68M	67.95M
Operating Cash Flow	71.54M	79.92M	71.43M	77.08M	56.31M	72.30M
Investing Cash Flow	645.69M	2.77M	-34.92M	-54.06M	-373.31M	-20.90M
Financing Cash Flow	-374.60M	-75.62M	-51.78M	-18.66M	300.43M	-41.30M

Altus Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 54.36 is above the 20-day moving average (MA) of 54.18, below the 50-day MA of 55.45, and below the 200-day MA of 54.69, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 40.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	74 Outperform	C$1.71B	5.56	19.75%	0.09%	14.29%	144.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AIF	64 Neutral	C$2.37B	-40.68	3.63%	1.10%	-27.10%	-2415.77%
CIGI	63 Neutral	C$10.21B	63.07	8.68%	0.21%	22.85%	-25.32%
FSV	61 Neutral	C$9.72B	50.66	11.14%	0.71%	14.10%	28.82%
SVI	58 Neutral	C$1.73B	-492.71	-2.63%	0.25%	9.98%	93.01%
BRE	43 Neutral	$125.19M	-11.59	―	10.23%	58.15%	-235.04%

Altus Group Corporate Events

Altus Group Initiates Substantial Issuer Bid to Enhance Shareholder Value

Altus Group Limited has announced the commencement of a substantial issuer bid to purchase up to C$350 million of its common shares, aiming to enhance shareholder value by offering a premium over the current market price. This strategic move, funded by the company’s cash reserves, is intended to reflect the board’s belief that the current market price does not adequately represent the company’s fundamental value, potentially impacting shareholder equity and market perception.

Altus Group Unveils Strategic Value Creation Plan at Investor Day

Altus Group announced a comprehensive value creation plan at its Investor Day, including mid-term financial targets, portfolio optimization, and capital return strategies. The company plans to streamline its portfolio by divesting non-core segments and enhancing its focus on core businesses like ARGUS and Valuation Management Solutions. Additionally, Altus Group is set to return up to C$500 million to shareholders through a substantial issuer bid and a normal course issuer bid, while also introducing new financial disclosures to enhance transparency.

Altus Group Unveils Strategic Value Creation Plan at Investor Day

Altus Group announced a comprehensive value creation plan at its Investor Day, outlining mid-term financial targets, portfolio optimization, and capital return strategies. The company plans to streamline its portfolio by divesting non-core segments, initiate a substantial issuer bid to repurchase shares, and introduce new financial disclosures, positioning itself as a pure-play CRE intelligence provider.

Altus Group Reports Q3 2025 Results and Declares Q4 Dividend

Altus Group reported its Q3 2025 financial results, highlighting a steady growth in recurring revenue and an expansion in adjusted EBITDA margin. The company also announced a Q4 2025 dividend payment, reflecting its stable financial performance and commitment to returning value to shareholders. The business outlook for Q4 2025 and the full year 2025 indicates moderate growth in analytics revenue and recurring revenue, with some challenges anticipated in the appraisals and development advisory segment due to global trade uncertainty and interest rate volatility.

Altus Group Announces Leadership Changes and Strategic Review Conclusion

Altus Group has announced a significant leadership transition, with Jim Hannon stepping down as CEO and Mike Gordon being appointed as Executive Chair and future CEO in Q1 2026. This change is part of the company’s strategic focus on accelerating market adoption of new product innovations as it transitions into a pure-play CRE data and analytics platform. Additionally, the company concluded a strategic review, deciding to remain independent and continue executing its strategy to maximize shareholder value. This decision reflects confidence in the company’s transformation and growth potential, with further details to be shared at an upcoming Investor Day.