There has been very little movement in Alstom's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The stock, which is currently worth 2026 to 0.61 times its sales, is clearly overvalued in comparison with peers.
● The company appears to be poorly valued given its net asset value.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company sustains low margins.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● Over the past twelve months, analysts' opinions have been revised negatively.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
● The group usually releases earnings worse than estimated.
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Alstom is one of the world leading manufacturers of infrastructures for rail transport sector. Net sales break down by family of products and services as follows:
- rolling stocks (51.1%): trains, tramways and locomotives;
- railway services (24.3%): maintenance, modernization, management of spare parts, support and technical assistance services;
- signaling, information and control systems (14.3%);
- railway infrastructures (10.3%): infrastructures for the track laying, lines electrical power systems, electromechanical equipment, telecommunication devices and traveler information in station, terminals for automatic purchase of tickets, access to escalators, lifts for disabled, automatic landing doors on platforms, ventilation, air conditioning and lighting systems).
Net sales are distributed geographically as follows: France (17.1%), Europe (39.6%), Americas (19.8%), Asia/Pacific (14.5%) and Middle East/Africa/Central Asia (9%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
