| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 196.00 | -63 |
| Intrinsic value (DCF) | 196.00 | -63 |
| Graham-Dodd Method | 104.78 | -80 |
| Graham Formula | n/a |
Altareit SCA (AREIT.PA) is a prominent French real estate development company specializing in residential and mixed-use projects. Headquartered in Paris and founded in 1955, the company operates under its parent, Altarea SCA, focusing on developing residential units, serviced residences, and business properties. With a market capitalization of approximately €868 million, Altareit plays a significant role in France's real estate sector, particularly in urban development and mixed-use spaces. The company’s diversified portfolio includes high-demand residential properties and commercial real estate, positioning it strategically in a competitive market. Despite recent financial challenges, including a net loss in the latest fiscal year, Altareit maintains a strong cash position and operational cash flow, supporting its development pipeline. Investors should note its exposure to the cyclical nature of real estate and regulatory risks in France.
Altareit SCA presents a mixed investment profile. The company benefits from a strong market position in French real estate development, backed by its parent company Altarea SCA, and a diversified project pipeline. However, its recent net loss of €61 million and negative EPS (-€34.89) raise concerns about profitability. Positive aspects include solid operating cash flow (€256.3 million) and a healthy cash reserve (€653.4 million), which may support future projects. The lack of dividends and high total debt (€1.13 billion) could deter income-focused investors. Given its low beta (0.148), the stock may appeal to investors seeking lower volatility in the real estate sector, but macroeconomic risks in France’s property market warrant caution.
Altareit SCA operates in a competitive French real estate development market, where differentiation comes from mixed-use projects and urban residential developments. Its affiliation with Altarea SCA provides financial stability and access to larger projects, but its recent losses highlight operational inefficiencies. The company’s competitive advantage lies in its established brand and diversified portfolio, which includes both residential and commercial properties. However, competitors with stronger balance sheets and profitability may outperform in securing prime developments. Altareit’s reliance on the French market exposes it to local economic cycles and regulatory changes, unlike more diversified European peers. Its ability to leverage its cash reserves for high-return projects will be critical in maintaining competitiveness. The company must address cost structures and debt levels to improve margins and investor confidence.