Altus Group (AIF) AI Stock Analysis

• Market Cap: C$2.65B
• Dividend Yield: 0.97%
• Average Volume (3M): 195.90K
• Price to Earnings (P/E): 178.1
• Beta (1Y): 0.93
• Revenue Growth: -33.01%
• EPS Growth: -2201.72%
• Country: CA
• Employees: 2,000
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): 0.50
• Shares Outstanding: 43,188,710
• 10 Day Avg. Volume: 154,510
• 30 Day Avg. Volume: 195,895
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$63.33
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: C$67.00 ▲(8.75% Upside)

Altus Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting growth in recurring revenue and operational efficiency. Technical indicators show bullish momentum, though caution is advised due to overbought signals. Valuation concerns persist due to a negative P/E ratio, impacting the overall attractiveness.

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 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 Financial Statement Overview

Summary

Altus Group demonstrates a stable financial position with strong gross margins and prudent balance sheet management. The significant net income and cash flow improvements in the TTM period are notable, but the underlying reasons should be examined for sustainability. While the company shows potential with low leverage and strong cash generation, the inconsistent revenue growth and historical volatility in financial metrics are areas to monitor 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	524.54M	519.73M	772.84M	735.45M	625.39M	561.16M
Gross Profit	503.00M	475.71M	714.90M	271.50M	223.93M	206.21M
EBITDA	75.26M	50.23M	99.36M	74.95M	87.38M	85.91M
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: Positive
• Last Price: 61.61
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 61.61 is above the 20-day moving average (MA) of 59.08, above the 50-day MA of 56.05, and above the 200-day MA of 54.75, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 65.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AIF.

Altus Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIF	68 Neutral	C$2.65B	178.14	3.20%	0.97%	-33.01%	-2201.72%
Sector *	63 Neutral	$7.06B	13.38	-0.50%	6.96%	4.08%	-25.24%
FSV	―	$9.16B	64.33	12.16%	0.52%	―	―
CIGI	―	$8.35B	75.28	8.69%	0.18%	―	―
MEQ	81 Outperform	C$1.84B	5.99	19.75%	0.07%	14.29%	144.57%
SVI	58 Neutral	C$1.71B	―	-23.35%	0.25%	7.94%	-12.23%
PKTEF	―	$104.43M	10.02	9.18%	―	―	―

Altus Group Corporate Events

Altus Group Addresses Speculative Media Reports Amid Strategic Review

Altus Group has responded to media reports about a potential transaction involving the company, acknowledging a speculative article and confirming an ongoing strategic review. This review, aimed at maximizing stakeholder value, may involve acquisitions, divestitures, or a sale or merger, though no specific course of action is guaranteed. The board is committed to acting in the best interests of the company and its stakeholders, but will only disclose developments as required by regulatory obligations.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$62.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Declares Q3 2025 Dividend and Reinvestment Plan

Altus Group announced a cash dividend of $0.15 per common share for Q3 2025, payable on October 15, 2025, to shareholders of record as of September 30, 2025. The company also offers a Dividend Reinvestment Plan, allowing shareholders to reinvest dividends into additional shares at a discounted price, reinforcing its commitment to shareholder value and market stability.

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.

Altus Group Reports Strong Q2 2025 Financial Performance

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.