| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 116.40 | 0 |
| Intrinsic value (DCF) | 52.14 | -55 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 2.60 | -98 |
Altarea SCA is a leading French real estate developer and investor, specializing in Retail, Housing, and Business real estate. The company excels in mixed urban renewal projects, leveraging its comprehensive expertise in designing, developing, marketing, and managing bespoke real estate solutions. Listed on Euronext Paris and part of the SBF 120 index, Altarea plays a pivotal role in France's real estate sector, focusing on sustainable urban development. With a diversified portfolio and strong market presence, Altarea is well-positioned to capitalize on evolving urban landscapes and demand for integrated real estate solutions. The company's commitment to innovation and sustainability makes it a key player in France's real estate industry, catering to both commercial and residential markets.
Altarea SCA presents a mixed investment profile. The company's leadership in France's real estate sector and diversified portfolio across Retail, Housing, and Business real estate provide stability and growth potential. However, its high total debt (€2.99 billion) and modest net income (€6.1 million) raise concerns about financial leverage and profitability. The dividend yield is attractive at €8 per share, but investors should weigh this against the company's debt levels and beta of 1.039, indicating market volatility sensitivity. The operating cash flow (€370.1 million) and cash reserves (€778.9 million) offer some financial flexibility, but capital expenditures (€-31.9 million) suggest limited reinvestment. Investors should monitor Altarea's ability to manage debt while sustaining growth in urban renewal projects.
Altarea SCA's competitive advantage lies in its integrated approach to real estate development, combining Retail, Housing, and Business real estate under one umbrella. This diversification allows the company to undertake large-scale mixed-use projects, a niche where few competitors operate. Its strong presence in urban renewal projects in France positions it as a leader in sustainable and innovative real estate solutions. However, the company faces stiff competition from larger European real estate firms with greater financial resources and international reach. Altarea's focus on France limits its exposure to global markets, which could be a drawback in a highly competitive industry. The company's ability to secure prime urban projects and its expertise in tailored real estate products provide a competitive edge, but its high debt levels could constrain future growth compared to less leveraged peers.