LSE:0H59

Stock Analysis Report

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Executive Summary

Accor SA operates a chain of hotels. It operates through three segments: HotelServices, Hotel Assets & Others, and New Businesses.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0H59's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.7%

0H59

6.6%

GB Hospitality

1.8%

GB Market


1 Year Return

-24.2%

0H59

-27.7%

GB Hospitality

-12.2%

GB Market

Return vs Industry: 0H59 exceeded the UK Hospitality industry which returned -30.1% over the past year.

Return vs Market: 0H59 underperformed the UK Market which returned -14.4% over the past year.


Shareholder returns

0H59IndustryMarket
7 Day18.7%6.6%1.8%
30 Day1.6%-1.0%6.5%
90 Day-23.7%-28.1%-9.9%
1 Year-24.2%-24.2%-25.1%-27.7%-8.0%-12.2%
3 Year-36.6%-39.8%-22.7%-31.2%-5.6%-17.2%
5 Year-43.9%-49.3%-2.3%-19.7%11.2%-13.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0H59 (€25.44) is trading below our estimate of fair value (€35.95)

Significantly Below Fair Value: 0H59 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0H59 is good value based on its PE Ratio (17.1x) compared to the Hospitality industry average (17.5x).

PE vs Market: 0H59 is poor value based on its PE Ratio (17.1x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: 0H59 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 0H59 is overvalued based on its PB Ratio (1x) compared to the GB Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Accor forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0H59's forecast earnings growth (5.2% per year) is above the savings rate (1.2%).

Earnings vs Market: 0H59's earnings (5.2% per year) are forecast to grow slower than the UK market (20.1% per year).

High Growth Earnings: 0H59's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0H59's revenue (1.3% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: 0H59's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0H59's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Accor performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0H59 has a large one-off gain of €177.0M impacting its December 31 2019 financial results.

Growing Profit Margin: 0H59 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 0H59's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: 0H59 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 0H59 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-10.9%).


Return on Equity

High ROE: 0H59's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Accor's financial position?


Financial Position Analysis

Short Term Liabilities: 0H59's short term assets (€5.0B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: 0H59's short term assets (€5.0B) exceed its long term liabilities (€4.0B).


Debt to Equity History and Analysis

Debt Level: 0H59's debt to equity ratio (44.8%) is considered high.

Reducing Debt: 0H59's debt to equity ratio has reduced from 72.2% to 44.8% over the past 5 years.

Debt Coverage: 0H59's debt is well covered by operating cash flow (20.5%).

Interest Coverage: 0H59's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 0H59's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 0H59's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0H59's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0H59's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 0H59 is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0H59's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Sébastien Bazin (58yo)

6.75yrs

Tenure

€4,411,720

Compensation

Mr. Sébastien M. Bazin serves as the Vice-Chairman of the Supervisory Board of Buffalo Grill S.A. Mr. Bazin has been Acting Chairman and Chief Executive Officer of Accor S.A. since 2013 and has been its Di ...


CEO Compensation Analysis

Compensation vs Market: Sébastien's total compensation ($USD4.85M) is above average for companies of similar size in the UK market ($USD3.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sébastien Bazin
Chairman & CEO6.75yrs€4.41m0.068% 4.6m
Jean-Jacques Morin
Deputy CEO & CFO1.33yrsno datano data
Sébastien Valentin
Senior Vice Presidentno datano datano data
Carina Martin
Vice President of Media Relations Worldwideno datano datano data
Steven Taylor
Chief Marketing Officer1yrno datano data
Steven Daines
Chief Talent & Culture Officer0.50yrno datano data
Dominique Esnault
Global Chief Partners & Hotel Services Officerno datano datano data
Michael Issenberg
Chief Executive Officer of Asia-Pacific12.25yrsno datano data
Isabelle Birem
Senior Vice President of Customer Relations & Loyaltyno datano datano data
Cedric Gobilliard
Senior Vice President of Global Sales and Head of Lifestyle Division8.33yrsno datano data

4.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 0H59's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sébastien Bazin
Chairman & CEO6.75yrs€4.41m0.068% 4.6m
Henri M. E. V. d'Estaing
Chairmanno datano datano data
Iris Knobloch
Vice Chairman & Senior Independent Director3.83yrs€211.93k0.00038% 25.8k
Sarmad El Zok
Non-Independent Director3.83yrs€146.55k0.011% 730.1k
Isabelle Simon
Independent Director3.83yrs€133.32k0.00037% 25.2k
Sophie Gasperment
Independent Director9.92yrs€143.46k0.00059% 40.1k
Iliane Dumas
Employee Representative Director6yrs€96.97kno data
Aziz Fakhroo
Non-Independent Director3.83yrs€169.68k0.00037% 25.2k
Jiang Qionger
Independent Director3.83yrs€113.83k0.00075% 51.0k
Nicolas Sarkozy
Independent Director3.25yrs€85.60k0.00038% 25.8k

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 0H59's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Accor SA
  • Ticker: 0H59
  • Exchange: LSE
  • Founded: 1967
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: €6.798b
  • Shares outstanding: 267.11m
  • Website: https://group.accor.com/en

Number of Employees


Location

  • Accor SA
  • 82, rue Henri Farman
  • CS 20077
  • Issy-les-Moulineaux
  • Ile-de-France
  • 92445
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACRF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ACENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
ACRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0H59LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
ACPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
ACC-UETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
ACSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
ACWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
ACC NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
ACCY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008
ACR1DB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 2008

Biography

Accor SA operates a chain of hotels. It operates through three segments: HotelServices, Hotel Assets & Others, and New Businesses. The company owns, operates, manages, and franchises hotels. It also provides digital solutions to independent hotel operators and restaurant owners through D-edge, ResDiary, and Adoria platforms; and hotel booking services for travels agencies and corporates through Gekko solutions. In addition, the company offers concierge services; and digital sales through VeryChic, which offers private sales with luxury and high-end partners, as well as rents private luxury homes, such as onefinestay. As of December 31, 2019, it operated 5,089 hotels with 746,504 rooms in 111 countries worldwide. The company was founded in 1967 and is headquartered in Issy-les-Moulineaux, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 23:31
End of Day Share Price2020/05/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.