Fact based stock research
Alstom (ENXTPA:ALO)
FR0010220475
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Alstom stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), Alstom (Heavy Machinery, France) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Alstom are low in value (priced high) with a consolidated Value Rank of 36 (worse than 64% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on Alstom's financial characteristics. As the company Alstom shows low value with an Obermatt Value Rank of 36 (64% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 88% of comparable companies (Obermatt Growth Rank is 88). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 1 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Alstom, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | France |
| Industry | Heavy Machinery |
| Index | CAC 40, CAC All, SBF 120, Human Rights |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Alstom
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 44 |
|
53 |
|
90 |
|
36 |
|
| GROWTH | ||||||||
| GROWTH | 33 |
|
25 |
|
73 |
|
88 |
|
| SAFETY | ||||||||
| SAFETY | 5 |
|
44 |
|
9 |
|
1 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
63 |
|
6 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
41 |
|
26 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), Alstom (Heavy Machinery, France) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Alstom are low in value (priced high) with a consolidated Value Rank of 36 (worse than 64% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on Alstom's financial characteristics. As the company Alstom shows low value with an Obermatt Value Rank of 36 (64% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 88% of comparable companies (Obermatt Growth Rank is 88). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 1 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Alstom, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 44 |
|
53 |
|
90 |
|
36 |
|
| GROWTH | ||||||||
| GROWTH | 33 |
|
25 |
|
73 |
|
88 |
|
| SAFETY | ||||||||
| SAFETY | 5 |
|
44 |
|
9 |
|
1 |
|
| COMBINED | ||||||||
| COMBINED | 5 |
|
27 |
|
70 |
|
26 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 36 (worse than 64% compared with alternatives), Alstom shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Alstom. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning Alstom's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 78% of alternatives (22% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 14 are lower than average (dividends are expected to be lower than 86% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 45, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 36, is a hold recommendation based on Alstom's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Alstom may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 51 |
|
67 |
|
95 |
|
59 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 51 |
|
55 |
|
89 |
|
45 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 67 |
|
84 |
|
95 |
|
78 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 53 |
|
25 |
|
43 |
|
14 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 44 |
|
53 |
|
90 |
|
36 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 88 (better than 88% compared with alternatives) for 2024, Alstom shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Alstom. Sales Growth has a rank of 57 which means that currently, professionals expect the company to grow more than 57% of its competitors. Both Profit Growth, with a rank of 96, and Stock Returns, with a rank of 100, are also above average. But Capital Growth only has a rank of 43, which means that, currently, professionals expect the company to grow its invested capital less than 57% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 88, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 93 |
|
34 |
|
71 |
|
57 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 63 |
|
39 |
|
81 |
|
96 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
67 |
|
76 |
|
43 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 20 |
|
3 |
|
1 |
|
100 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 33 |
|
25 |
|
73 |
|
88 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company Alstom has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Alstom is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Alstom. Liquidity is at 13, meaning that the company generates less profit to service its debt than 87% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Finally, Refinancing is at a rank of 1 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 99% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), Alstom has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Alstom because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 14 |
|
72 |
|
56 |
|
40 |
|
| REFINANCING | ||||||||
| REFINANCING | 4 |
|
1 |
|
1 |
|
1 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 40 |
|
64 |
|
18 |
|
13 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 5 |
|
44 |
|
9 |
|
1 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
46 |
|
10 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
46 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
63 |
|
26 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
37 |
|
3 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
63 |
|
6 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Alstom from December 19, 2024.
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