Altus Group (AIF) AI Stock Analysis

• Market Cap: C$2.43B
• Dividend Yield: 1.11%
• Average Volume (3M): 194.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• 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: 43,248,867
• 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: 5.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$55.00 ▲(1.46% Upside)

The overall stock score of 58 reflects a mix of strengths and challenges. Financial performance is solid but hampered by declining revenue and cash flow growth. Technical indicators suggest a bearish trend, and valuation metrics are concerning with a negative P/E ratio. The earnings call provided some optimism with revenue and margin improvements, but leadership changes and revised guidance pose risks.

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 (AIF) is a leading provider of software, data solutions, and advisory services focused on the real estate industry. The company operates primarily in the sectors of property management, investment management, and valuation, offering a suite of products that includes cloud-based software applications, data analytics, and professional consulting services. Altus Group serves a diverse clientele ranging from property owners and investors to real estate professionals, helping them optimize their operations, make informed decisions, and enhance their overall asset performance.

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: Neutral
• Last Price: 54.21
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 54.21 is above the 20-day moving average (MA) of 52.98, below the 50-day MA of 56.50, and below the 200-day MA of 54.75, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.73B	5.63	19.75%	0.09%	14.29%	144.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FSV	65 Neutral	$10.00B	52.31	11.14%	0.71%	14.10%	28.82%
CIGI	61 Neutral	$11.11B	71.78	8.68%	0.21%	22.85%	-25.32%
AIF	58 Neutral	C$2.43B	-39.93	3.63%	1.11%	-27.10%	-2415.77%
SVI	47 Neutral	C$1.76B	-501.04	-2.63%	0.25%	9.98%	93.01%

Altus Group Corporate Events

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.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

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.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

Altus Group Earnings Call: Mixed Sentiments and Future Prospects

The recent earnings call of Altus Group Limited revealed a mixed sentiment, highlighting both positive strides and challenges. While the company celebrated growth in recurring revenue and margins, alongside a robust performance from ARGUS Intelligence, it also faced leadership changes and a softer performance in certain segments. The downward revision of guidance and restructuring efforts underscore the hurdles ahead, yet they also hint at potential improvements in the future.

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.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.

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.

The most recent analyst rating on (TSE:AIF) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Altus Group stock, see the TSE:AIF Stock Forecast page.