Alstom
Note: This is a daily stock update and the information stands true as of 14/11/24, 09:00 CET.
Company Update:
Expert Opinion:
The momentum is improving and the risks on the balance sheet are now behind us. Valuation is attractive with PE 25 (march at 11.2x, down to 9.5x in 27 (March). Alstom operates on an oligopolistic market with structurally strong demand. The struggle remains on the group ability to deliver orders. While I still have reservations on the management and the governance, the issues from the Bombardier integration seem to be addressed. Alstom offers attractive upside potential.
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Company Update:
Order intake stood at €10.95 bn (+4.5% vs consensus), clocking an organic growth of ~30% yoy. Group’s revenue was largely in line with the street expectations, driven by robust organic growth in Systems and Services (+14% and +12%, respectively).
Adjusted EBIT margin improved 70bp yoy, largely due to increased volumes (+20bp), industrial efficiencies (+15bp) and cost saving measures (+35bp). In all, H1 EBIT came in at €515m (+18%) , 2.1% better than the €504.7m of the consensus.
Group’s FCF of -€138m was considerably ahead of consensus (of -€370m), on the back of a positive change in working capital. Net debt position: €927m vs €2,994m on 31 March 2024.
Expert Opinion:
The momentum is improving and the risks on the balance sheet are now behind us. Valuation is attractive with PE 25 (march at 11.2x, down to 9.5x in 27 (March). Alstom operates on an oligopolistic market with structurally strong demand. The struggle remains on the group ability to deliver orders. While I still have reservations on the management and the governance, the issues from the Bombardier integration seem to be addressed. Alstom offers attractive upside potential.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.