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Altus Group Limited (TSE:AIF)
:AIF
Top Page
Altus Group Limited
(TSX:AIF)
58Neutral
Positive Factors
Customer Feedback
Customers we spoke to had positive feedback. Several are long-standing ARGUS customers, and spoke highly of it being the industry standard.
Technological Advancements
Altus Intelligence is leveraging AI to deliver predictive analytics capabilities, which provides a compelling use case for adoption.
Negative Factors
Earnings Visibility
New Bookings are expected to remain under pressure absent a recovery in CRE transaction activity which reduces earnings visibility.
Altus Group Limited (AIF) vs. S&P 500 (SPY)
Market Cap
C$2.40B
Dividend Yield1.16%
Average Volume (3M)118.54K
Price to Earnings (P/E)176.5
Beta (1Y)1.16
Revenue Growth-13.29%
EPS Growth29.94%
CountryCA
Employees1,900
SectorReal Estate
Sector Strength62
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.29
Shares Outstanding46,029,408
10 Day Avg. Volume85,906
30 Day Avg. Volume118,541
Financial Highlights & Ratios
PEG Ratio5.89
Price to Book (P/B)N/A
Price to Sales (P/S)4.57
Price to Cash Flow (P/CF)24.00
P/FCF Ratio20.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$59.67Price Target Upside14.60% Upside
Rating ConsensusHold
Number of Analyst Covering3
Altus Group Limited Business Overview & Revenue Model
Company DescriptionAltus Group Limited is a leading provider of software, data solutions, and advisory services to the global commercial real estate industry. The company operates across several sectors, including property tax, valuation and cost consulting, and asset and investment management. Altus Group's core offerings include its proprietary software platforms and expert advisory services designed to enhance the performance and efficiency of real estate assets and portfolios.
How the Company Makes MoneyAltus Group Limited generates revenue primarily through a combination of software sales, subscription services, and advisory fees. The company's key revenue streams include its Altus Analytics segment, which offers software solutions and data analytics platforms on a subscription basis, and its Commercial Real Estate Consulting segment, which provides valuation, cost consulting, and property tax advisory services. Significant partnerships with real estate firms and continued demand for data-driven insights in property investment and management contribute to its earnings. Additionally, Altus Group benefits from long-term client relationships and recurring revenue models associated with its software and consulting services.
Altus Group Limited Financial Statement Overview
Summary
Altus Group Limited shows stability in its balance sheet and strong cash flow management, but faces challenges with revenue contraction and limited profitability. The income statement highlights a significant revenue decrease and low net profit margin, indicating a need for operational cost management and improved revenue growth.Income Statement
Altus Group Limited experienced a decrease in total revenue from $772.8M in 2023 to $519.7M in 2024, indicating significant revenue contraction. The gross profit margin for 2024 was 100% due to the matching revenue and gross profit figures, but the net profit margin was only 2.58%, showing limited profitability. The lack of EBIT in 2024 also suggests challenges in operational efficiency. While EBITDA margin was 11.47%, the overall income statement reflects a need for improved revenue growth and operational cost management.65
Positive
Balance Sheet
The company maintained a stable equity base with stockholders' equity at $617.2M in 2024, up from $602.5M in 2023. The debt-to-equity ratio was 0.52, indicating moderate leverage, which is manageable. The equity ratio was 49.35%, reflecting a balanced capital structure. However, the increase in total debt from $355.6M in 2023 to $319.6M in 2024, while slightly reduced, remains a focus area for financial risk management. Overall, the balance sheet is relatively stable with room for optimizing debt levels.70
Positive
Cash Flow
Free cash flow improved from $58.9M in 2023 to $72.5M in 2024, reflecting positive cash generation. The operating cash flow to net income ratio was robust at 5.95, indicating strong cash conversion from earnings. The free cash flow to net income ratio was also strong at 5.4, suggesting efficient cash management. Despite challenges in revenue, the cash flow statement shows good liquidity management and potential for strategic investments.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 519.73M | 772.84M | 735.45M | 625.39M | 561.16M | Gross Profit |
| 519.73M | 291.08M | 271.50M | 223.93M | 206.21M | EBIT |
| 0.00 | 48.81M | 55.57M | 48.02M | 55.24M | EBITDA |
| 59.58M | 99.36M | 74.95M | 86.07M | 85.15M | Net Income Common Stockholders |
| 13.42M | 10.23M | -889.00K | 25.69M | 21.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.88M | 41.89M | 55.27M | 51.27M | 69.64M | Total Assets |
| 1.25B | 1.21B | 1.26B | 1.20B | 735.40M | Total Debt |
| 319.65M | 355.55M | 378.14M | 358.06M | 186.01M | Net Debt |
| 277.77M | 313.66M | 322.88M | 306.79M | 116.38M | Total Liabilities |
| 633.74M | 612.16M | 664.02M | 609.84M | 351.95M | Stockholders Equity |
| 617.22M | 602.54M | 599.87M | 589.48M | 383.45M |
| Cash Flow | Free Cash Flow | |||
| 72.47M | 58.94M | 52.60M | 45.68M | 67.95M | Operating Cash Flow |
| 79.92M | 71.43M | 77.08M | 56.31M | 72.30M | Investing Cash Flow |
| 2.77M | -34.92M | -54.06M | -373.31M | -20.90M | Financing Cash Flow |
| -75.62M | -51.78M | -18.66M | 300.43M | -41.30M |
Altus Group Limited Technical Analysis
Negative
52.07
Price Trends
55.40
Negative
56.03
Negative
54.56
Negative
Market Momentum
-1.03
Negative
39.57
Neutral
53.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIF, the sentiment is Negative. The current price of 52.07 is below the 20-day moving average (MA) of 52.40, below the 50-day MA of 55.40, and below the 200-day MA of 54.56, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 53.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIF.
Altus Group Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$1.29B | 4.97 | 6.46% | 0.56% | -7.92% | 256.12% | |
71 Outperform | $2.66B | 15.27 | 9.74% | ― | 40.02% | ― | |
68 Neutral | C$818.81M | 25.54 | 6.73% | ― | 4.84% | 67.68% | |
64 Neutral | $8.90B | 40.16 | 14.89% | 0.24% | 13.08% | 146.40% | |
61 Neutral | $4.73B | 18.32 | -3.52% | 11.32% | 5.97% | -21.87% | |
58 Neutral | $1.79B | ― | -18.83% | ― | -3.20% | -107.88% | |
58 Neutral | C$2.40B | 176.50 | 3.63% | 1.16% | -13.29% | 29.94% |
* Real Estate Sector Average
Performance Comparison
TSE:AIF
Altus Group Limited
52.07
0.63
1.22%
TSE:MRC
Morguard (OTC)
120.25
2.61
2.22%
TSE:FVI
Fortuna Silver Mines
8.94
3.91
77.73%
TSE:CIGI
Colliers International Group
175.79
10.63
6.44%
TSE:CFP
Canfor
15.12
-1.99
-11.63%
TSE:GDI
GDI Integrated
34.77
-4.44
-11.32%
Altus Group Limited Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -6.73% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of significant achievements such as strong adjusted EBITDA growth, high recurring revenue, and a robust balance sheet. However, these were tempered by challenges like declining cash generation, slow data solutions performance, and macroeconomic uncertainties impacting future growth.Highlights
Strong Adjusted EBITDA Growth
Adjusted EBITDA increased by 51.8% in Q4, leading to an 800 basis point improvement in margin.
Record Cash Flow Growth
Free cash flow for the full year increased by 23%, driven by strong adjusted EBITDA growth and improved working capital processes.
High Recurring Revenue
Recurring revenue constituted 94% of analytics revenues in Q4, making up 75% of the consolidated revenue base, and was up 5.8%.
Appraisals and Development Advisory Profitability
Despite revenue headwinds, adjusted EBITDA in appraisals and development advisory improved by $2.1 million in Q4, up 93.4% year-over-year.
ARGUS Cloud Adoption
82% of ARGUS users were contracted on the cloud by the end of the quarter.
Strong Balance Sheet
The company ended the quarter with $41.9 million in cash and $282.9 million in bank debt, with a funded debt to EBITDA leverage ratio of 2.01 times.
Lowlights
Cash Generation Decline
Cash generation from continuing and discontinued operations was down year-over-year, due to higher cash taxes and transitional costs.
Soft Data Solutions Performance
There was a decline in non-recurring revenue within data solutions, impacting overall revenue growth.
VMS Growth Slowdown
VMS growth is expected to be lower in Q1 due to clients rebalancing portfolios, temporarily reducing asset counts.
Non-Core Services Wind Down
The company is winding down some non-core services, which is expected to impact revenue growth negatively.
Market Uncertainty
Continued choppy macroeconomic conditions and concerns over geopolitical and fiscal policy impacts on cost of capital.
Company Guidance
During the Altus Group's fourth quarter and fiscal year 2024 financial results conference call, the company provided guidance for fiscal 2025 and highlighted several key metrics. The company expects analytics segment revenue growth in the range of 4% to 7%, with recurring revenue growth projected at 6% to 9%. Adjusted EBITDA margin expansion is anticipated to be between 250 to 350 basis points. For the full year, Altus Group aims for single-digit revenue growth of 3% to 5% and a 300 to 400 basis point improvement in margins. In Q1, total analytics revenue growth is forecasted at 0% to 2%, with recurring revenue growth between 2% to 3%. The company continues to focus on high-margin recurring business, with 94% of analytics revenues being recurring in Q4 2024. For fiscal 2026, Altus Group maintains its medium-term target of achieving 35% margins in the analytics segment. The guidance also includes the context of improving market conditions and continued cost optimization efforts.Altus Group Limited Corporate Events
Altus Group Sells Property Tax Unit to Ryan
Jan 2, 2025
Altus Group Limited has successfully sold its global Property Tax business to Ryan, LLC for C$700 million, marking a significant move towards becoming a pure-play software, data, and analytics platform in the commercial real estate sector. This strategic transaction will allow Altus to reduce debt, invest in innovation, and focus on high-quality acquisitions while enhancing shareholder value.
Altus Group Nears Sale of Property Tax Business
Dec 30, 2024
Altus Group Limited has announced the completion of regulatory waiting periods for the sale of its global Property Tax business to Ryan, LLC, expecting the deal to finalize around January 1, 2025. This strategic move aligns with Altus Group’s focus on providing asset and fund intelligence for commercial real estate.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.