ACCOR SA (AC.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AC - FR0000120404 - Common Stock
45.93 EUR
-0.58 (-1.25%)
AC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of AC get a neutral evaluation. Nothing too spectacular is happening here. AC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- AC had positive earnings in the past year.
- AC had a positive operating cash flow in the past year.
- Of the past 5 years AC 4 years were profitable.
- In multiple years AC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a Return On Assets value of 4.62%, AC perfoms like the industry average, outperforming 53.23% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.57%, AC is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- With a Return On Invested Capital value of 7.63%, AC perfoms like the industry average, outperforming 53.23% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AC is significantly below the industry average of 12.01%.
- The 3 year average ROIC (6.13%) for AC is below the current ROIC(7.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 12.57% | ||
| ROIC | 7.63% |
ROA(3y)4.37%
ROA(5y)-1.11%
ROE(3y)10.2%
ROE(5y)-3.52%
ROIC(3y)6.13%
ROIC(5y)N/A
1.3 Margins
- AC's Profit Margin of 9.64% is fine compared to the rest of the industry. AC outperforms 67.74% of its industry peers.
- AC's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 14.68%, AC is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
- AC's Operating Margin has improved in the last couple of years.
- AC has a Gross Margin of 97.62%. This is amongst the best in the industry. AC outperforms 100.00% of its industry peers.
- AC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.68% | ||
| PM (TTM) | 9.64% | ||
| GM | 97.62% |
OM growth 3YN/A
OM growth 5Y2.51%
PM growth 3Y66.47%
PM growth 5Y-0.32%
GM growth 3Y0.02%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AC is creating some value.
- AC has less shares outstanding than it did 1 year ago.
- AC has less shares outstanding than it did 5 years ago.
- AC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.69, we must say that AC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.69, AC is in line with its industry, outperforming 48.39% of the companies in the same industry.
- The Debt to FCF ratio of AC is 7.09, which is on the high side as it means it would take AC, 7.09 years of fcf income to pay off all of its debts.
- AC has a Debt to FCF ratio (7.09) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.92 indicates that AC is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.92, AC is doing good in the industry, outperforming 66.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.12
WACC6.81%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that AC should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.12, AC is doing good in the industry, outperforming 69.35% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that AC should not have too much problems paying its short term obligations.
- The Quick ratio of AC (1.11) is better than 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- AC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.27%, which is quite impressive.
- Measured over the past years, AC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.16% on average per year.
- AC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
- The Revenue has been growing slightly by 6.72% on average over the past years.
EPS 1Y (TTM)25.27%
EPS 3Y134.94%
EPS 5Y19.16%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y36.5%
Revenue growth 5Y6.72%
Sales Q2Q%2.54%
3.2 Future
- AC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.62% yearly.
- Based on estimates for the next years, AC will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y-8.19%
EPS Next 2Y2.85%
EPS Next 3Y7.12%
EPS Next 5Y12.62%
Revenue Next Year3.62%
Revenue Next 2Y4.67%
Revenue Next 3Y5.18%
Revenue Next 5Y5.95%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.71, the valuation of AC can be described as rather expensive.
- AC's Price/Earnings ratio is a bit cheaper when compared to the industry. AC is cheaper than 75.81% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AC is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.63 indicates a rather expensive valuation of AC.
- 67.74% of the companies in the same industry are more expensive than AC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AC is valued a bit cheaper than 66.13% of the companies in the same industry.
- AC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
- AC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y2.85%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
- AC has a Yearly Dividend Yield of 2.67%.
- Compared to an average industry Dividend Yield of 1.36, AC pays a better dividend. On top of this AC pays more dividend than 82.26% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, AC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
- The dividend of AC has a limited annual growth rate of 2.40%.
Dividend Growth(5Y)2.4%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 55.39% of the earnings are spent on dividend by AC. This is a bit on the high side, but may be sustainable.
- The dividend of AC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.39%
EPS Next 2Y2.85%
EPS Next 3Y7.12%
ACCOR SA / AC.PA FAQ
What is the fundamental rating for AC stock?
ChartMill assigns a fundamental rating of 5 / 10 to AC.PA.
Can you provide the valuation status for ACCOR SA?
ChartMill assigns a valuation rating of 4 / 10 to ACCOR SA (AC.PA). This can be considered as Fairly Valued.
How profitable is ACCOR SA (AC.PA) stock?
ACCOR SA (AC.PA) has a profitability rating of 6 / 10.
What is the financial health of ACCOR SA (AC.PA) stock?
The financial health rating of ACCOR SA (AC.PA) is 4 / 10.
Is the dividend of ACCOR SA sustainable?
The dividend rating of ACCOR SA (AC.PA) is 6 / 10 and the dividend payout ratio is 55.39%.