Alstom ALO.PA
Alstom is a French manufacturer of rolling stock and railway mobility solutions (trains, metros, trams, and signaling systems) operating globally. Alstom trades at a forward P/E of 7.56 and an FCF yield of 8.38%, suggesting an attractive valuation, but quality is weak (ROE 3.41%, operating margin 3.25%) and earnings growth is negative (-29.5%). The Canadian contract and new orders provide visibility, but profitability remains the main challenge.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Alstom is a French manufacturer of rolling stock and railway mobility solutions (trains, metros, trams, and signaling systems) operating globally. Alstom trades at a forward P/E of 7.56 and an FCF yield of 8.38%, suggesting an attractive valuation, but quality is weak (ROE 3.41%, operating margin 3.25%) and earnings growth is negative (-29.5%). The Canadian contract and new orders provide visibility, but profitability remains the main challenge.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.0 |
| Quality / Moat | 3.0 |
| Valuation | 7.6 |
| Growth | 3.6 |
| Dividend | 1.5 |
| Momentum | 0.7 |
| Risk & Context | 4.8 |
OVERALL SCORE: 4.4/10
Context and risks
Geopolitical risk from exposure to global supply chains and potential tariffs in key markets (US, Canada), although the Canadian contract mitigates part of this risk. The ECB's interest rate hikes make financing more expensive for its clients (rail operators), which could delay orders, but the effect is indirect and moderate.
News considered in the analysis
- Canada Picks Alstom to Build Passenger Railcars in Multibilllion-Dollar Deal — Contrato multibillonario que refuerza la cartera de pedidos y la visibilidad de ingresos a medio plazo, aunque el mercado ya lo conocía parcialmente.
- Alstom (ENXTPA:ALO) Lands New Rail Orders With Valuation Still In Focus — Nuevos pedidos que confirman la demanda, pero el titular también señala que la valoración sigue siendo un tema de debate.
- Aecom wins Dubai Al-Maktoum airport metro link contract — Noticia sobre un competidor (Aecom) en un proyecto específico; no afecta directamente a Alstom.
- Richard Branson’s plan to make the Eurostar feel like a second-class service — Opinión sobre un operador (Eurostar), no sobre el fabricante Alstom; sin impacto directo.
- Alstom (ENXTPA:ALO) Stock Looks Cheap On Earnings But Pricey On Broader Checks — Análisis de valoración sin información nueva; el mercado ya ha descontado la dicotomía entre PER forward y otras métricas.
Verdict: Hold; the cheap valuation and order book are positive, but low profitability and negative growth warrant caution until margins improve.
Main risk: The inability to translate a strong order book into healthy operating margins (3.25%) and earnings growth, keeping profitability structurally low.
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