Alstom is a global leader in the 2 types of markets where it operates. The company manufactures power generators and railway transport equipment (locomotives, wagons, etc.) while performing turnkey installations.
Its fiscal year ends on 31 / 3 and their accounts closed last year known and therefore the 31/03/2009, you can obtain the following information regarding its capitalization at 04/01/2010:
• 13,748 Capitalization of Mill / Euros.
• EBITDA in the vicinity of the 1882 mill / Euros.
• PER of just over 12.
• Market the company pays for the equivalent 7.3 times EBITDA and 8.7 times their operating cash flows (without taking into account changes in working capital).
We must also consider that despite substantially reduced new orders in the pipeline over the past year, still has contracts in excess of 2 years of activity.
Other information:
The company spent a period of difficulties in recent years and need the help of French government and banks to get ahead. In recent years bills have improved year after year.
is currently not a debtor company and enjoys tango sound from a financial standpoint. One
their larger competitors, is the German giant Siemens, SPAIN is a major competitor in the market for rail transport company CAF.
With this information it is questionable whether there is an appropriate investment option and therefore with sufficient margin. If we consider only the financial information, it looks like it is, operates in a sector that will continue to grow especially in emerging countries, is a leading global market and holds the data value if we 2009 as representative. This is any price in the vicinity of 46 which now trading (if less the better), should present a cost-effective. However we consider that it is a history of management and continued benefits, before deciding where to invest the balance in our portfolio.
