Altus Group’s stock rose 3.3% recently, but concerns linger due to weak financial indicators, particularly its low return on equity (ROE) of 1.9%, significantly below the industry average of 9.8%. This low ROE, coupled with a high payout ratio of 218%, has led to a 30% decline in net income over the past five years. Analysts predict a potential rise in future earnings as the payout ratio is expected to decrease to 29%, potentially boosting ROE to 15%. Investors should exercise caution, considering the company’s historical earnings shrinkage against industry growth rates of 15%.