ENXTPA:COV

Stock Analysis Report

Executive Summary

A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.1%

COV

-0.2%

FR REITs

1.0%

FR Market


1 Year Return

13.8%

COV

12.0%

FR REITs

14.7%

FR Market

Return vs Industry: COV exceeded the French REITs industry which returned 12% over the past year.

Return vs Market: COV matched the French Market which returned 14.7% over the past year.


Shareholder returns

COVIndustryMarket
7 Day-0.1%-0.2%1.0%
30 Day3.0%2.7%3.9%
90 Day9.5%11.4%8.4%
1 Year19.4%13.8%19.4%12.0%18.5%14.7%
3 Year58.1%36.4%41.0%18.3%50.9%36.4%
5 Year82.1%39.4%74.6%31.5%72.3%47.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COV (€101.6) is trading below our estimate of fair value (€115.68)

Significantly Below Fair Value: COV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COV is poor value based on its PE Ratio (12.6x) compared to the REITs industry average (10.6x).

PE vs Market: COV is good value based on its PE Ratio (12.6x) compared to the French market (18x).


Price to Earnings Growth Ratio

PEG Ratio: COV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: COV is overvalued based on its PB Ratio (1.1x) compared to the FR REITs industry average (1.1x).


Next Steps

Future Growth

How is Covivio forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COV's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: COV's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: COV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COV's revenue (1.1% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: COV's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COV's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Covivio performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COV has large one-off items impacting its financial results.

Growing Profit Margin: COV's current net profit margins (59.3%) are lower than last year (79.6%).


Past Earnings Growth Analysis

Earnings Trend: COV's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: COV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COV had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the REITs industry average (14.6%).


Return on Equity

High ROE: COV's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Covivio's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: COV has a high level of physical assets or inventory.

Debt Coverage by Assets: COV's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: COV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if COV has a sufficient allowance for bad loans.

Low Risk Liabilities: COV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if COV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: COV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if COV has an appropriate level of bad loans.


Next Steps

Dividend

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

4.53%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.5%markettop25%4.5%industryaverage5.0%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: COV's dividend (4.53%) is higher than the bottom 25% of dividend payers in the French market (1.5%).

High Dividend: COV's dividend (4.53%) is low compared to the top 25% of dividend payers in the French market (4.48%).


Stability and Growth of Payments

Stable Dividend: COV's dividend payments have been volatile in the past 10 years.

Growing Dividend: COV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.6%), COV's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COV's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Joseph Kullmann (54yo)

8.8yrs

Tenure

€2,101,056

Compensation

Mr. Christophe Kullmann, also known as Joseph, has been Chief Executive Officer of Foncière Développement Logements since February 2018. Mr. Kullmann has been the Chief Executive Officer since October 2015 ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD2.32M) is below average for companies of similar size in the French market ($USD3.51M).

Compensation vs Earnings: Joseph's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

46yo

Average Age

Experienced Management: COV's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: COV's board of directors are considered experienced (8.2 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 6.7%.


Management Team

  • Joseph Kullmann (54yo)

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: €2.10m
  • Olivier Joseph Estève (55yo)

    Deputy GM & Deputy CEO

    • Tenure: 8.8yrs
    • Compensation: €1.14m
  • Yves Marque

    COO, Chief Corporate Officer & Secretary of the Board

    • Tenure: 0yrs
  • Marjolaine Cecile Alquier De L’Epine (46yo)

    Director of Internal Audit & Control

    • Tenure: 0yrs
  • Tugdual Millet (41yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
  • Dominique Ozanne (41yo)

    Deputy GM & Deputy CEO

    • Tenure: 1.8yrs
    • Compensation: €1.17m
  • Paul Arkwright

    Head of Corporate Finance and Investors Relations

    • Tenure: 0yrs
  • Géraldine Lemoine

    Communication Director

    • Tenure: 0yrs
  • Didier Guion

    Technical Director

    • Tenure: 0yrs
  • Elsa Canetti

    Human Resources Director

    • Tenure: 0yrs

Board Members

  • Leonardo Del Vecchio (84yo)

    Vice Chairman

    • Tenure: 8.8yrs
    • Compensation: €18.00k
  • Jean Gaston Pierre Marie Laurent (75yo)

    Independent Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: €440.59k
  • Jérôme Grivet (57yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: €52.00k
  • Olivier Piani (65yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: €9.60k
  • Joseph Kullmann (54yo)

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: €2.10m
  • Christian Delaire (52yo)

    Independent Director

    • Tenure: 0.6yrs
  • Catherine Soubie (54yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: €41.00k
  • Jean-Luc Biamonti (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: €57.00k
  • Romolo Bardin (41yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: €48.00k
  • Catherine Allonas-Barthe (64yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: €37.00k

Company Information

Covivio's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Covivio
  • Ticker: COV
  • Exchange: ENXTPA
  • Founded: 1963
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: €8.836b
  • Shares outstanding: 86.97m
  • Website: https://www.covivio.eu

Number of Employees


Location

  • Covivio
  • 30, Avenue Kléber
  • Paris
  • Ile-de-France
  • 75016
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COVENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
0J6VLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
GSEF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
F5DDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
CVOBIT (Borsa Italiana)YesCommon SharesITEURJan 1992

Biography

A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces. A benchmark in the Eur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:39
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.