Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ALSTOM. We currently have 6 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Impressive set of results in H1 16
09 Nov 16
Alstom reported strong figures in H1 16 which were above market expectations. Main facts: Order intake reached €6.2bn, a +66% yoy organic increase and leading to a record €33.6bn order book (+22% yoy organic increase). Revenues came in at €3,570m, a +7% organic increase. Adjusted EBIT was up 20% yoy at €200m and corresponding to a 5.6% margin (versus 5.1% in H1 15). Free cash flow of €333m (versus €-1,336m), was exceptionnaly high with several down-payments. 2020 guidance confirmed: organic growth of 5% per year and the EBIT margin to reach 7%.
Weak orders in Q1 16 which should not be extrapolated
13 Jul 16
Alstom booked €0.9 bn of orders in Q1 16, compared to c.€2bn over the same period last year. Sales reached €1.7bn and were up 7% organically over Q1 2016/17 mainly driven by regional, high-speed and suburban trains in France, regional trains in Italy, Germany and Sweden, the progressive ramp-up of the PRASA project in South Africa, maintenance of high speed trains in the UK as well as a signalling project in Canada. At €29.7bn on 30 June 2016, the backlog represented over four years of sales. The trains contribution to new orders reached 31% while services, systems and signalling reached 69%, however the signalling contribution was only 23% of orders compared to 25% in Q1 15/16. Objectives for 2020 are confirmed, as sales should grow organically by 5% per year, the adjusted EBIT margin should reach around 7% driven by volume, portfolio mix and efficiencies, while the company expects c. 100% conversion from net income into free cash flow.
The company confirmed its positive turnaround
11 May 16
Alstom reported positive full-year 2015/16 results, which confirmed back to normal, coupled with positive prospects ahead according to the 2020 strategic plan. Main facts: Orders grew 7% yoy at €10.64bn (versus €10.05bn in 2015/14) while the backlog reached €30.63bn, a +14% yoy organic increase and corresponding to more than four years revenue. Revenue was €6881m, 12% growth reported but corresponding to 7% organic growth. The adjusted EBIT was €366m, a +23% increase, corresponding to a 5.3% margin versus 4.8% last year. Net debt was €200m at the end of March 2015. Net income was €3.0bn, impacted by the selling of the energy division. The company confirmed its 2020 targets: By 2020, sales should grow organically by 5% per year. Adjusted EBIT margin should reach around 7% by 2020, driven by volume, portfolio mix and the results of operational excellence actions. By 2020, Alstom expects c. 100% conversion from net income into free cash flow.
Solid Q3 orders confirm positive outlook
18 Jan 16
Alstom Q3 results and press conference call on first nine months’ orders & sales for FY 2015/16 (April 1st to December 12). Alstom booked €2,358 million of orders in Q3 2015/16, versus €1,615 million last year corresponding to a +46% increase. Major commercial successes included regional trains in Belgium, Pendolino trains and associated maintenance in Italy, electrification, a signaling and telecommunications project in India, locomotives in Switzerland, regional trains in Germany, extension of the metro in Panama as well as the tramway for Nice in France. Revenues increased to €1,613 million in the third quarter 2015/16, compared to €1,501 million for the same period last year. (7.4% increase). Nonetheless, Q3 organic sales growth was around 3% on a YoY basis, falling below the 5% organic annual sales growth target previously announced by Alstom Chief Executive Officer Patrick Kron. These results give the company a book-to-bill ratio of 1.46x for the quarter and 1.29x for the first nine months. In the press conference Mr. Kron stated that the GE Signaling business, acquired in November 2015, had been consolidated in the last two months' results and had generated €60m of Sales over this period (€360m on an annualised basis); this was slightly disappointing given the expected €400m increase in annual Sales. Thanks to the grid and power businesses divestment, Alstom is sitting on a substantial amount of cash, even after the $3.2 billion share buyback, the €700m acquisition of GE’s signaling business and the stake increase in Russia’s Transmashholding from 25% to 33% late last year for 54 million Euros. The company is currently net debt free, meaning that in-hand cash balances the gross debt, giving the company a window for external growth and/new share buybacks although CEO Patrick Kron did say in the press conference that external growth and share buybacks were not the first priority. The press conference was Mr. Kron's last and he took the opportunity to thank his teams for the ‘’great work they’ve done’’ during his 13-year career as CEO. He is replaced by the Alstom Transportation’s segment president, Mr. Henri Poupart-Lafarge.
A deleveraged company with a cautious growth approach
05 Nov 15
Alstom reported its H1 15/16 results, governance changes and a return to shareholders. H1 15 orders reached €3.9bn (-39% yoy as H1 14 figures included the jumbo South African contract of €4bn), including about €2bn orders in Q2 15. Sales were €3.3bn, an 8% increase yoy, of which +4% organic reflecting solid performance in Europe and continued growth in Emerging markets. The operating income was €167m (+10% versus last year's €152m) and corresponding to a 5.1% operating margin, slightly higher than last year (5.0%). The net income for continued operations was €18m (below last year's level of (€29m), impacted by one-offs linked to the GE deal. The operating FCF was €-5m,impacted by the ramp-up of some projects (high WC). The outlook is maintained, for the medium term sales are expected to grow at over 5% per year organically and the operating margin within the 5-7% range. Besides the H1 results, two significant pieces of news were released by Alstom: 1/ As expected Alstom will proceed with a public share buy-back offer for €3.2bn at a price of €35, concerning a maximum of 91.5m shares, which will then be cancelled. The transaction will be submitted to the approval of a Shareholders’ Meeting on 18/12/2015, as well as a review by the AMF. The offer would be opened from 23 December 2015 to 20 January 2016 with settlement-delivery of the shares scheduled for 28 January 2016. 2/ Governance: also expected, Mr Kron has resigned from his functions of chairman and CEO which will take place after the return to shareholders, at the end of January 2016, and Mr Henri Poupart-Lafarge will then take over.
Satisfactory level of orders in Q1
20 Jul 15
Alstom reported €1.96bn of orders in Transport for its Q1 15/16, a 59% decrease yoy but Q1 14/15 included the jumbo contract of €4.0bn in South Africa. If we exclude the jumbo contract, the order level is rather strong in comparison with last year although fuelled by small and mid-sized contracts including maintenance of Kazakh locomotives, locomotives in Azerbaijan and a signalling system in Hong Kong. Revenues reached €1.6bn in Q1 15, corresponding to +8% growth (of which +3% organic) mainly driven by regional and suburban trains in France, regional trains in Italy and Germany, as well as the maintenance of high speed trains in the UK. The company expect sales to grow 5% organically per year over the mid term, while the operating margin should gradually improve within the 5-7% range
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.