Alstom shares have lost more than 50% since the start of the year, is this now a good deal?
Business life, market functioning, stock market law... The editorial staff of Le Figaro Patrimoine et Bourse will answer your questions and provide you with their expertise.
Within the SBF 120 index, two stocks have lost more than half of their value since the start of 2026: Stellantis and Alstom. If the difficulties facing the automobile manufacturer are well known (complicated market, technological breakthrough with electrification, tough Chinese competition, etc.), those of the railway equipment manufacturer are of a completely different nature. Robust orders, but still cash problems There is no shortage of order intake since they were higher than turnover in the first half of 2026/2027, i.e. 11 billion euros for 9.30 billion euros.
But the group also reported “execution difficulties in Europe”, an adjusted operating margin falling into the red (approximately -4%) as well as, once again, free cash flow which was also negative: -1.25 billion euros, down 69% over one year. Alstom is struggling to settle low-margin orders inherited from its marriage with Bombardier in 2021. Technical and industrial difficulties have recently been added, hence the second warning of the year.
Cash flow is the crux of the matter: stay away from this unfortunately dangerous issue for shareholders.
Machine-translated from French
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- Le Figaro8 Nov, 10:00
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