Altareit SA Faces Financial Challenges Amidst Recent Performance Gains and High Leverage

Altareit SA, a microcap player in the realty sector, has recently undergone an adjustment in its evaluation, reflecting changes in its underlying financial metrics. The company has reported a sales growth of -3.01% over the past five years, alongside a significant decline in EBIT growth of -31.12%. This trend indicates challenges in maintaining operational profitability.
The firm's ability to service its debt is highlighted by a Debt to EBITDA ratio of 2.79, suggesting a higher leverage position. Additionally, Altareit SA's average Return on Capital Employed (ROCE) stands at 6.92%, which points to modest profitability relative to its total capital employed. The company has also recorded a tax ratio of 33.22%, with a dividend payout ratio of 0.0%, indicating a focus on reinvestment rather than returning capital to shareholders.

Despite these challenges, Altareit SA has managed to generate a return of 23.33% over the past year, outperforming the broader market, which saw returns of 6.01%. This performance, coupled with a fair valuation reflected in its Price to Book Value of 1.21, underscores the complexities of its current financial standing.

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