ENXTPA:ELIOR

Stock Analysis Report

Executive Summary

Elior Group S.A. provides contract catering and support services in France, the United States, the United Kingdom, Spain, Italy, India, Portugal, and internationally.

Rewards

Trading at 15.9% below its fair value

Earnings are forecast to grow 10.95% per year

Became profitable this year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

Starbucks

NasdaqGS:SBUX

Share Price & News

How has Elior Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELIOR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

ELIOR

-2.3%

FR Hospitality

-1.4%

FR Market


1 Year Return

5.9%

ELIOR

4.3%

FR Hospitality

21.1%

FR Market

Return vs Industry: ELIOR exceeded the French Hospitality industry which returned 3.9% over the past year.

Return vs Market: ELIOR underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

ELIORIndustryMarket
7 Day-0.7%-2.3%-1.4%
30 Day1.8%-5.6%0.5%
90 Day15.2%2.5%5.9%
1 Year8.9%5.9%7.3%4.3%25.3%21.1%
3 Year-32.4%-37.0%3.0%-5.6%43.2%29.5%
5 Year5.1%-5.0%13.9%-2.0%63.1%39.5%

Price Volatility Vs. Market

How volatile is Elior Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elior Group undervalued compared to its fair value and its price relative to the market?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELIOR (€13.5) is trading below our estimate of fair value (€16.05)

Significantly Below Fair Value: ELIOR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELIOR is poor value based on its PE Ratio (34.5x) compared to the Hospitality industry average (24.9x).

PE vs Market: ELIOR is poor value based on its PE Ratio (34.5x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ELIOR is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ELIOR is overvalued based on its PB Ratio (1.4x) compared to the FR Hospitality industry average (1.3x).


Next Steps

Future Growth

How is Elior Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELIOR's forecast earnings growth (10.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: ELIOR's earnings (10.9% per year) are forecast to grow slower than the French market (11.7% per year).

High Growth Earnings: ELIOR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ELIOR's revenue (2.9% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: ELIOR's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELIOR's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Elior Group performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELIOR has a large one-off loss of €37.0M impacting its September 30 2019 financial results.

Growing Profit Margin: ELIOR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ELIOR's earnings have declined by -14.9% per year over the past 5 years.

Accelerating Growth: ELIOR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ELIOR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-0.2%).


Return on Equity

High ROE: ELIOR's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elior Group's financial position?


Financial Position Analysis

Short Term Liabilities: ELIOR's short term assets (€941.0M) do not cover its short term liabilities (€1.2B).

Long Term Liabilities: ELIOR's short term assets (€941.0M) exceed its long term liabilities (€860.0M).


Debt to Equity History and Analysis

Debt Level: ELIOR's debt to equity ratio (35.7%) is considered satisfactory.

Reducing Debt: ELIOR's debt to equity ratio has reduced from 120.6% to 35.7% over the past 5 years.

Debt Coverage: ELIOR's debt is well covered by operating cash flow (253.5%).

Interest Coverage: ELIOR's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: ELIOR has a low level of unsold assets or inventory.

Debt Coverage by Assets: ELIOR's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Elior Group's current dividend yield, its reliability and sustainability?

2.18%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%4.5%industryaverage2.9%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: ELIOR's dividend (2.15%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: ELIOR's dividend (2.15%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

Stable Dividend: ELIOR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ELIOR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), ELIOR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELIOR's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

What is the CEO of Elior Group's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Philippe Guillemot (60yo)

2.1yrs

Tenure

€1,174,281

Compensation

Mr. Philippe Guillemot has been the Chief Executive Officer of Elior Group S.A. since December 5, 2017 and its Director since March 2018. He serves as a Chairman of the Board at Elior North America. Mr. Gu ...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD1.31M) is about average for companies of similar size in the French market ($USD1.66M).

Compensation vs Earnings: Insufficient data to compare Philippe's compensation with company performance.


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: ELIOR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: ELIOR's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dominique Pélabon

    Executive Vice President of Interna- Tional Contract Catering

    • Bertrand Lozé

      Executive Vice President of Concession Catering - France

      • Philippe Guillemot (60yo)

        CEO & Director

        • Tenure: 2.1yrs
        • Compensation: €1.17m
      • Gilles Raffin

        Executive Vice President of Support Services of France

        • Esther Gaide (57yo)

          Group Chief Financial Officer

          • Tenure: 1.8yrs
        • Kimberly Stewart

          Head of Investor Relations

          • Tenure: 0.2yrs
        • Bernard Duverneuil

          Group Chief Information & Digital Officer

          • Tenure: 2yrs
        • Ludovic Oster (49yo)

          Group Chief Human Resources Officer

          • Tenure: 2yrs
        • Damien Rebourg (47yo)

          Group Chief Communications Officer

          • Tenure: 1yrs
        • Thierry Thonnier

          Group Chief Legal Officer


          Board Members

          • Bernard Gault (60yo)

            Independent Director

            • Tenure: 1.8yrs
            • Compensation: €46.83k
          • Anne Busquet (69yo)

            Independent Director

            • Tenure: 3.8yrs
            • Compensation: €82.00k
          • Robert Zolade (79yo)

            Honorary Chairman

            • Tenure: 5.6yrs
            • Compensation: €79.00k
          • Gilles Cojan (65yo)

            Chairman of the Board

            • Tenure: 2.2yrs
            • Compensation: €565.33k
          • Gilles Auffret (72yo)

            Senior Independent Director

            • Tenure: 2.4yrs
            • Compensation: €88.00k
          • Sophie Javary (60yo)

            Representative Director

            • Tenure: 3.8yrs
            • Compensation: €45.00k
          • Philippe Guillemot (60yo)

            CEO & Director

            • Tenure: 2.1yrs
            • Compensation: €1.17m
          • Elisabeth Van Damme (53yo)

            Independent Director

            • Tenure: 3.8yrs
            • Compensation: €61.00k
          • Celia Cornu (39yo)

            Non-Voting Member

            • Tenure: 1.8yrs
            • Compensation: €18.00k
          • Virginie Dupérat-Vergne (44yo)

            Independent Director

            • Tenure: 1.8yrs
            • Compensation: €34.00k

          Company Information

          Elior Group S.A.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Elior Group S.A.
          • Ticker: ELIOR
          • Exchange: ENXTPA
          • Founded: 1991
          • Industry: Restaurants
          • Sector: Consumer Services
          • Market Cap: €2.256b
          • Shares outstanding: 169.78m
          • Website: https://www.eliorgroup.com

          Number of Employees


          Location

          • Elior Group S.A.
          • Tour Égée - 11, allée de l’Arche
          • Cedex
          • Paris
          • Ile-de-France
          • 92032
          • France

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          ELIORENXTPA (Euronext Paris)YesCommon SharesFREURJun 2014
          21EDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2014
          ELIORPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJun 2014
          0QVPLSE (London Stock Exchange)YesCommon SharesGBEURJun 2014
          ELRO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2014

          Biography

          Elior Group S.A. provides contract catering and support services in France, the United States, the United Kingdom, Spain, Italy, India, Portugal, and internationally. The company offers contract catering services to business and industry, education, and healthcare sectors under the Elior brand; and concession catering services at the airport, on the road, at the station, or in the city under the Areas brand. It also offers a range of value-added services under the Elior Services brand, such as cleaning and hygiene services for hotels, industrial sites, shops and retail outlets, and food industry; biological cleaning and hospitality services in the healthcare sector; and facility management and support services, including reception, internal mail handling, minor repairs and maintenance, gardening, etc. for corporate clients. As of January 24, 2019, it operated approximately 25,600 restaurants and points of sale. Elior Group S.A. was founded in 1991 and is headquartered in Paris, France. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/24 22:16
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          Annual Earnings2019/09/30


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.