Altarea SCA
🇫🇷 ALTA.PA · Paris · FR0000033219
Real Estate
EUR 115.80 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
318.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 115.80 ÷ 0.36 = 318.0
TTM period through: 2025-12-31
Forward P/E (estimated): 11.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 313.0
Yield (Fwd)
6.91%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.96%
Net Debt/EBITDA (TTM)
12.4x
Latest quarter: 30.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 30.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
2196.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 2132.1%
Cash Flow Payout (TTM): 269.7%
FCF Coverage (TTM): -0.21x
ROE
2.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
28.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Altarea SCA is a French real estate developer currently facing severe structural headwinds in the residential housing market. The combination of dangerous debt levels (12.39x Net Debt/EBITDA), negative free cash flow coverage, and a history of chronic dividend cuts makes this stock entirely unsuitable for conservative income strategies. Not recommended for new positions, as the extreme payout ratios and fundamental deterioration indicate the 6.96% yield is a value trap rather than a sustainable opportunity.
Sector Context
Altarea SCA operates as a real estate developer and investor in France, focusing on retail, residential, and business properties. While real estate entities typically carry higher debt levels backed by tangible assets, heavy exposure to property development makes earnings inherently cyclical and sensitive to economic conditions. In a high interest rate environment, carrying excessive leverage while dealing with a housing market downturn creates immense structural risk.
📊 Strategy Analysis
- • The retail property segment has demonstrated some operational resilience with increased net rental income compared to the struggling residential division
- • Analysts are projecting an earnings recovery, reflected in a forward P/E estimate of 11.43 compared to the severely depressed trailing metrics
⚠ What to Watch
- • Net Debt to EBITDA is dangerously elevated at 12.39x, far exceeding conservative real estate leverage limits and creating massive refinancing risk in a volatile interest rate environment
- • Chronic dividend instability characterized by four cuts in the last decade, including a devastating 91.4% reduction in 2023 followed by an additional 20.9% cut in 2024
- • The current 6.96% dividend yield is mathematically unsustainable, evidenced by a trailing P/E of 317.96x, a 269.73% cash flow payout ratio, and negative free cash flow coverage
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.