ACCOR SA (AC.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AC - FR0000120404 - Common Stock
46.51 EUR
-0.65 (-1.38%)
We assign a fundamental rating of 5 out of 10 to AC. AC was compared to 60 industry peers in the Hotels, Restaurants & Leisure industry. AC has only an average score on both its financial health and profitability. AC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AC was profitable.
- 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 55.00% 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 71.67% of the companies in the same industry.
- With a Return On Invested Capital value of 7.63%, AC perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- AC had an Average Return On Invested Capital over the past 3 years of 6.13%. This is significantly below the industry average of 11.82%.
- 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
- Looking at the Profit Margin, with a value of 9.64%, AC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of AC has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 14.68%, AC is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
- AC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 97.62%, AC belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
- In the last couple of years the Gross Margin of AC has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AC is still creating some value.
- Compared to 1 year ago, AC has less shares outstanding
- AC has less shares outstanding than it did 5 years ago.
- AC has a worse debt/assets ratio than last year.
2.2 Solvency
- AC has an Altman-Z score of 1.70. This is a bad value and indicates that AC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AC (1.70) is comparable to the rest of the 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's Debt to FCF ratio of 7.09 is in line compared to the rest of the industry. AC outperforms 51.67% of its industry peers.
- AC has a Debt/Equity ratio of 0.92. This is a neutral value indicating AC is somewhat dependend on debt financing.
- AC has a Debt to Equity ratio of 0.92. This is in the better half of the industry: AC outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 1.7 |
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.
- AC has a Current ratio of 1.12. This is in the better half of the industry: AC outperforms 71.67% of its industry peers.
- AC has a Quick Ratio of 1.11. This is a normal value and indicates that AC is financially healthy and should not expect problems in meeting its short term obligations.
- AC's Quick ratio of 1.11 is fine compared to the rest of the industry. AC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 25.27% over the past year.
- AC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.16% yearly.
- The Revenue has been growing slightly by 6.43% in the past year.
- 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
- The Earnings Per Share is expected to grow by 12.62% on average over the next years. This is quite good.
- AC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y-4.83%
EPS Next 2Y4.32%
EPS Next 3Y8.09%
EPS Next 5Y12.62%
Revenue Next Year3.62%
Revenue Next 2Y4.67%
Revenue Next 3Y5.18%
Revenue Next 5Y5.95%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- With a Price/Earnings ratio of 19.96, AC is valued on the expensive side.
- AC's Price/Earnings ratio is a bit cheaper when compared to the industry. AC is cheaper than 76.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. AC is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 18.34, the valuation of AC can be described as rather expensive.
- 68.33% of the companies in the same industry are more expensive than AC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. AC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
- AC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AC is cheaper than 68.33% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | 11.93 |
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)1.04
EPS Next 2Y4.32%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
- AC has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.29, AC pays a better dividend. On top of this AC pays more dividend than 86.67% of the companies listed in the same industry.
- AC's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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 2Y4.32%
EPS Next 3Y8.09%
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%.