Altus Group (AIF) AI Stock Analysis

• Market Cap: C$2.29B
• Dividend Yield: 1.13%
• Average Volume (3M): 152.87K
• Price to Earnings (P/E): 178.1
• Beta (1Y): 1.01
• Revenue Growth: -23.26%
• EPS Growth: -644.01%
• Country: CA
• Employees: 2,000
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.19
• Shares Outstanding: 43,165,943
• 10 Day Avg. Volume: 160,018
• 30 Day Avg. Volume: 152,866
• PEG Ratio: 25.23
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.07
• 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$58.00
• Price Target Upside: 9.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: C$57.00 ▲(7.65%Upside)

Altus Group's overall stock score reflects its stable financial position, strong cash generation, and strategic initiatives, such as share buybacks and product launches. However, valuation concerns and technical indicators suggest caution. The company's ability to sustain its financial performance amid macroeconomic challenges will be crucial for future stability.

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 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 Limited makes money through a diverse revenue model that includes software subscriptions, consulting services, and data analytics solutions. The company's key revenue streams are derived from its proprietary software platforms, such as ARGUS, which provide real estate asset and investment management solutions. Additionally, Altus Group generates revenue from its advisory services, which offer expertise in property tax assessments, valuations, and cost management. The company benefits from significant partnerships with real estate firms and investors, which enhance its market reach and service offerings. Altus Group also capitalizes on its extensive database and analytics capabilities to provide valuable market insights, further contributing to its earnings.

Altus Group Financial Statement Overview

Summary

Altus Group exhibits a stable financial position with strong gross margins and prudent balance sheet management. Significant net income and cash flow improvements in the TTM period are notable. However, inconsistent revenue growth and historical volatility in financial metrics warrant monitoring for future stability.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	599.79M	519.73M	772.84M	735.45M	625.39M	561.16M
Gross Profit	564.13M	475.71M	714.90M	271.50M	223.93M	206.21M
EBITDA	74.23M	50.23M	99.36M	74.95M	87.38M	85.91M
Net Income	389.36M	13.42M	10.23M	-886.00K	25.69M	21.43M
Balance Sheet
Total Assets	1.37B	1.25B	1.21B	1.26B	1.20B	735.40M
Cash, Cash Equivalents and Short-Term Investments	491.91M	41.88M	41.89M	55.27M	51.27M	69.64M
Total Debt	195.67M	319.65M	355.55M	378.14M	358.06M	186.01M
Total Liabilities	496.77M	633.74M	612.16M	664.02M	609.84M	351.95M
Stockholders Equity	877.09M	617.22M	602.54M	599.87M	589.48M	383.45M
Cash Flow
Free Cash Flow	77.54M	72.47M	58.94M	52.60M	45.68M	67.95M
Operating Cash Flow	83.59M	79.92M	71.43M	77.08M	56.31M	72.30M
Investing Cash Flow	660.16M	2.77M	-34.92M	-54.06M	-373.31M	-20.90M
Financing Cash Flow	-298.65M	-75.62M	-51.78M	-18.66M	300.43M	-41.30M

Altus Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 52.95 is above the 20-day moving average (MA) of 52.93, below the 50-day MA of 52.97, and below the 200-day MA of 54.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 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
AIF	67 Neutral	C$2.29B	178.14	2.13%	1.13%	-23.26%	-644.01%
Sector *	59 Neutral	C$1.23B	0.76	-8.20%	5.65%	9.89%	-25.14%
FSV		$7.84B	59.91	11.61%	0.64%	―	―
CIGI		$6.62B	45.93	11.57%	0.23%	―	―
MEQ	78 Outperform	C$1.73B	7.06	15.90%	0.09%	16.22%	39.56%
SVI	61 Neutral	C$1.49B	―	-23.06%	0.29%	5.77%	-388.17%
PKTEF		$90.67M	―	-3.10%	―	―	―

Altus Group Corporate Events

Altus Group Reports Strong Q1 2025 Financial Results and Expands Share Buyback

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.

Altus Group Reports 2025 AGM Voting Results

Altus Group announced the results of its 2025 Annual General Meeting, where all director nominees were elected and Ernst & Young LLP was appointed as the company’s auditor. The advisory vote on executive compensation was also supported by a majority of shareholders. This outcome reflects strong shareholder confidence in the company’s leadership and strategic direction.