Altus Group Limited (AIF.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Altus Group Limited provides software, data solutions, and independent advisory services to the commercial real estate industry in Canada, the United States, Europe, and the Asia Pacific.It operates through Altus Analytics and Commercial Real Estate Consulting (CRE Consulting) segments.The Altus Analytics segment offers ARGUS Enterprise, a commercial property valuation and asset management software; ARGUS Taliance, a real estate fund and alternative investment management software; ARGUS EstateMaster, a property development feasibility and management software; and ARGUS Developer, a real estate development pro forma and management software solution; ARGUS Voyanta, a powerful data aggregation, validation, and reporting software solution; ARGUS Acquire, a real estate acquisition deals and pipeline management software; and ARGUS ValueInsight, a commercial real estate valuation software.

This segment also offers data subscription products that provide real estate information on the residential, office, industrial, and investment markets; and advisory and managed services.This segment serves equity and debt investors, valuers and appraisers, brokers, developers, banks, and public entities.The CRE Consulting segment offers real estate property tax services, including assessment reviews, management, and appeals, as well as personal property, and state and local tax advisory services; valuation services, such as appraisals of real estate portfolios, valuation of properties, due diligence, litigation, and economic consulting services; and construction feasibility study, budgeting, cost and loan monitoring, and project management services to owner operators, developers, financial institutions, and CRE asset holders and investors.

The company was founded in 2005 and is headquartered in Toronto, Canada.

Show Full description

1.b. Last Insights on AIF

Recent news surrounding Altus Group Limited suggests a lack of significant negative drivers behind its stock performance. However, the company's independence is called into question due to a high institutional ownership of 44%. Additionally, insider transactions reveal buying activity, but not at a level that would significantly impact the stock price. The latest earnings release in Q4 and fiscal 2024 showed robust recurring revenue growth, margin expansion, and cash flow improvement, but a lack of specifics on how these metrics will be sustained in FY 2025 may have contributed to uncertainty.

1.c. Company Highlights

Last Price	55.53
Change Percentage	0.40%
Open	55.31
Previous Close	55.31
Market Cap ( Millions)	2398
Volume	75952
Year High	63.07
Year Low	43.84
M A 50	55.82
M A 200	54.85

FCF Yield	2.76%
Dividend Yield	1.08%
ROE	54.16%
Debt / Equity	24.64%
Net Debt / EBIDTA	-219.59%
Price To Book	3.0
Price Earnings Ratio	6.15
Price To FCF	36.28
Price To sales	4.57
EV / EBITDA	26.66

2. Altus Group's Q3 2025 Earnings: A Mixed Bag

Altus Group reported a 2.2% increase in consolidated revenue to $133 million, with recurring revenue growing 5.2% year-over-year, driven by the strength of ARGUS Intelligence, which delivered double-digit growth for the second consecutive quarter. Consolidated margins expanded by 230 basis points to 19.2%, indicating improved operating leverage. However, EPS came in at $0.38, missing estimates of $0.572. The company's cash flow generation remained strong, a testament to its ability to translate earnings into cash.

Publication Date: Nov -26

                                    📋 Highlights
                                    Leadership Transition::
                                                Jim Hannon departs; Mike Gordon appointed Executive Chair and CEO (Q1 2026).
Strategic Review Outcome::
                                                Board concludes independence is optimal over acquisition, citing better short- to medium-term value creation.
Quarterly Growth::
                                                Recurring revenue up 5.2% (3Q 2025), driven by double-digit growth in ARGUS Intelligence; consolidated margins rise 230 bps to 19.2%.
2025 Guidance Revision::
                                                Revenue and EBITDA guidance moderated due to softness in Appraisal and Debt Advisory; Analytics revenue outlook slightly adjusted downward.
ARGUS Intelligence Progress::
                                                56% migration achieved, with 70% seat-based and 30% asset-based pricing, delivering 16% blended price increases and NRR >100%.

                                

Segment Performance

The Analytics segment, which houses ARGUS Intelligence, continued to be a bright spot, with ARR growing at a high double-digit rate and net revenue retention well north of 100%. The migration to ARGUS Intelligence is approximately 56% complete, with 70% of the migration landing as seat-based and 30% as asset-based, both coming with meaningful price increases. The Appraisal and Debt Advisory segment, however, continues to experience softness, moderating the company's view on consolidated adjusted EBITDA margins.

Guidance Revision and Outlook

The company refined its full-year guidance ranges, taking a more conservative view on revenue due to ongoing softness in Appraisal and Debt Advisory. Despite this, the company is optimistic about 2026, with a growing backlog and a healthy pipeline. The CRE market is showing positive signs, and Altus Group is positioned to accelerate market adoption of its new product innovation. Analysts estimate revenue growth at 7.3% for next year, indicating a potential rebound.

Valuation and Growth Prospects

With a P/E Ratio of 5.99 and an EV/EBITDA of 25.92, the market appears to be pricing in a moderate growth trajectory. The company's ROE of 54.16% and ROIC of 8.55% indicate a strong ability to generate returns on equity and invested capital. As the company focuses on accelerating execution, growing core franchises, and increasing profitability, investors will be watching the Investor Day on November 20 for further guidance on the value creation plan.

Strategic Review and Future Plans

The strategic review considered several options, including solicitation of offers, but the Board determined that remaining independent and continuing to execute and accelerate its strategy is the best path forward. The company is focusing on driving value back to shareholders in the nearer term and will consider acquisitions and divestitures if they become interesting. With a growing backlog and a healthy pipeline, Altus Group is poised to drive growth in the coming quarters.

3. NewsRoom

How Recent Developments Are Rewriting the Story for Altus Group

Nov -27

Source:

Altus Group Announces Commencement of Substantial Issuer Bid

Nov -26

Source:

Altus Group Unveiling "Value Creation Plan" at Investor Day Today

Nov -20

Source:

Altus Group to Unveil Value Creation Plan at Investor Day Today

Nov -20

Source:

Altus Group Releases Q3 2025 U.S. Investment & Transactions Quarterly Report

Nov -18

Source:

Altus Group's (TSE:AIF) Earnings May Just Be The Starting Point

Nov -13

Source:

Altus Group (TSX:AIF): Exploring Current Valuation After Recent Share Price Decline

Nov -12

Source:

Altus Group (TSX:AIF) Is Down 11.2% After CEO Transition and Lower 2025 Revenue Outlook – What's Changed

Nov -12

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.01%)

6. Segments

Analytics

Expected Growth: 8%

Altus Group Limited's 8% growth is driven by increasing demand for commercial real estate services, expansion into new markets, and strategic acquisitions. The company's expertise in property tax consulting, valuation, and cost advisory services also contributes to its growth. Additionally, investments in technology and data analytics capabilities enhance its service offerings, attracting new clients and driving revenue growth.

Commercial Real Estate Consulting

Expected Growth: 6%

Strong demand for commercial real estate consulting services driven by increasing complexity in property transactions, growing need for data-driven insights, and rising adoption of technology-enabled solutions. Altus Group's expertise in valuation, advisory, and analytics services positions it for growth, further fueled by expansion into new markets and strategic acquisitions.

7. Detailed Products

ARGUS Enterprise

A comprehensive, integrated platform for managing and analyzing commercial real estate investments

ARGUS Taliance

A cloud-based, integrated platform for managing and analyzing commercial real estate investments

Altus Model

A cloud-based, integrated platform for managing and analyzing commercial real estate investments

Altus Analytics

A data analytics platform providing insights and trends on commercial real estate markets

Altus Valuation

A valuation and appraisal management platform for commercial real estate

Altus Research

A research and advisory service providing insights and trends on commercial real estate markets

8. Altus Group Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Altus Group Limited operates in a niche market, providing software and data analytics solutions to the commercial real estate industry. While there are some substitutes available, they are not as comprehensive or specialized as Altus Group's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Altus Group Limited's customers are primarily large commercial real estate companies and institutions, which have limited bargaining power due to their reliance on Altus Group's specialized software and data analytics solutions.

Bargaining Power Of Suppliers

Altus Group Limited has a diversified supplier base, and its suppliers have limited bargaining power due to the company's strong market position and ability to negotiate favorable terms.

Threat Of New Entrants

The commercial real estate software and data analytics market has high barriers to entry, including significant capital requirements and the need for specialized expertise, reducing the threat of new entrants.

Intensity Of Rivalry

The commercial real estate software and data analytics market is moderately competitive, with a few established players, including Altus Group Limited. While there is some rivalry, the market is growing, and there is room for multiple players to coexist.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.11%
Debt Cost	7.88%
Equity Weight	62.89%
Equity Cost	7.88%
WACC	7.88%
Leverage	59.01%

11. Quality Control: Altus Group Limited passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Altus Group

A-Score: 5.0/10

Value: 3.2

Growth: 2.9

Quality: 8.2

Yield: 1.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Newmark

A-Score: 4.9/10

Value: 5.0

Growth: 4.0

Quality: 5.4

Yield: 2.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

StorageVault Canada

A-Score: 4.5/10

Value: 3.2

Growth: 7.1

Quality: 3.0

Yield: 0.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Madison Pacific Properties

A-Score: 4.4/10

Value: 3.4

Growth: 3.7

Quality: 5.6

Yield: 8.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

RE/MAX

A-Score: 4.3/10

Value: 8.5

Growth: 3.2

Quality: 6.8

Yield: 2.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

Doma

A-Score: 4.0/10

Value: 9.6

Growth: 3.3

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

10.46%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.88%

Altus Group Limited - CA02215R1073

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AIF

1.c. Company Highlights

Expensive

Lower Yield

Stable Momentum

Earnings Miss

Strong Momentum

Revenues Miss

Average Quality

Earnings Beats

Medium Volatility

Average Growth

Revenues Beats

Better Quality

Fairly Valued

2. Altus Group's Q3 2025 Earnings: A Mixed Bag

Segment Performance

Guidance Revision and Outlook

Valuation and Growth Prospects

Strategic Review and Future Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.01%)

6. Segments

Analytics

Expected Growth: 8%

Commercial Real Estate Consulting

Expected Growth: 6%

7. Detailed Products

ARGUS Enterprise

ARGUS Taliance

Altus Model

Altus Analytics

Altus Valuation

Altus Research

8. Altus Group Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Altus Group Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.53$

Current Price

55.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA