Altarea SCA (ATRRF)

Sunday

4:25 PM

ThesisThe combination of rising interest rates and increasing construction costs is creating a challenging environment for Altarea, leading to concerns about future profitability.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$2.1B	$2.7B	$2.8B
Rev. Growth	-23.1%	+28.9%	+2.5%
EPS	$0.37	$7.38	$7.99
EPS Growth	+27.6%	+1896%	+8.3%
P/E (fwd)	295.9×	14.8×	13.7×

★ Analysts see FY2026 revenue reaching $2.7B — +28.9% growth in a single year.

What Moves the Stock

01Changes in housing demand in Île-de-France, particularly in urban areas
02Regulatory changes affecting zoning and land use
03Interest rate fluctuations impacting mortgage availability and consumer purchasing power
04Trends in commercial real estate occupancy rates
05Residential development (approximately 60% of total revenue)
06Commercial property development (approximately 30% of total revenue)
07Retail development (approximately 10% of total revenue)
08Urbanization and demand for mixed-use developments

FY2025 Snapshot

Revenue: $2.1B
Rev. Growth: -23.1%
Gross Margin: 23.8%
Op. Margin: 8.7%
Net Margin: 0.4%
Net Income: $8M
NI Growth: +37.7%
EPS: $0.37
1Y Return: +2.3%

My Notes

"Management noted, 'We are navigating a complex landscape with rising costs and regulatory pressures that could impact our growth trajectory.'"
Moat: Altarea's established presence in key urban markets provides a competitive edge, but the high level of competition poses ongoing challenges.
value - investors may be attracted to the stock due to its low Price/Sales ratio of 0.7x, indicating potential undervaluation.
High interest rates increase financing costs for development projects and reduce affordability for potential buyers…
Watch on earnings: Housing starts in Île-de-France, Interest rates (30-Year Fixed Mortgage Rate), Consumer sentiment index (UMich).

One Sentence Summary:

Altarea SCA: the story is balanced — changes in housing demand in île-de-france, particularly in urban areas.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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