OTCPK:ELRO.F

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 14.6% below its fair value

Earnings are forecast to grow 12.1% 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

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: ELRO.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ELRO.F

-1.2%

US Hospitality

0.06%

US Market


1 Year Return

n/a

ELRO.F

6.0%

US Hospitality

19.4%

US Market

Return vs Industry: Insufficient data to determine how ELRO.F performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how ELRO.F performed against the US Market.


Shareholder returns

ELRO.FIndustryMarket
7 Day0%-1.2%0.06%
30 Day0%-5.0%1.1%
90 Dayn/a7.0%8.9%
1 Yearn/a8.7%6.0%21.9%19.4%
3 Yearn/a35.7%26.8%48.9%39.3%
5 Yearn/a47.7%32.2%71.9%53.1%

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

No news available

Valuation

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

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELRO.F ($14.85) is trading below our estimate of fair value ($17.39)

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


Price To Earnings Ratio

PE vs Industry: ELRO.F is poor value based on its PE Ratio (33.6x) compared to the Hospitality industry average (24x).

PE vs Market: ELRO.F is poor value based on its PE Ratio (33.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ELRO.F is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: ELRO.F is good value based on its PB Ratio (1.4x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Elior Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELRO.F's forecast earnings growth (12.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ELRO.F's earnings (12.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: ELRO.F's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ELRO.F'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: ELRO.F's Return on Equity is forecast to be low in 3 years time (7.1%).


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

Growing Profit Margin: ELRO.F became profitable in the past.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: ELRO.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-9.8%).


Return on Equity

High ROE: ELRO.F'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: ELRO.F's short term assets (€941.0M) do not cover its short term liabilities (€1.2B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: ELRO.F'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?

2.21%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: ELRO.F's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ELRO.F's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

Growing Dividend: ELRO.F'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%), ELRO.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELRO.F's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Philippe Guillemot (60yo)

2.2yrs

Tenure

€2,986,436

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD3.24M) is below average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philippe Guillemot
CEO & Director2.2yrs€2.99m0.011% 266.6k
Esther Gaide
Group Chief Financial Officer1.9yrsno datano data
Bernard Duverneuil
Group Chief Information & Digital Officer2.1yrsno datano data
Kimberly Stewart
Head of Investor Relations0.3yrsno datano data
Thierry Thonnier
Group Chief Legal Officer0yrsno datano data
Damien Rebourg
Group Chief Communications Officer1.1yrsno datano data
Ludovic Oster
Group Chief Human Resources Officer2.1yrsno datano data
Dominique Pélabon
Executive Vice President of Interna- Tional Contract Catering0yrsno datano data
Bertrand Lozé
Executive Vice President of Concession Catering - France0yrsno datano data
Gilles Raffin
Executive Vice President of Support Services of France0yrsno datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: ELRO.F's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philippe Guillemot
CEO & Director2.2yrs€2.99m0.011% 266.6k
Antonio Llorens Tubau
Chairman & CEO of Serunion0yrsno datano data
Anne Busquet
Independent Director3.9yrs€58.50k0.0014% 33.6k
Robert Zolade
Honorary Chairman5.7yrs€69.00k20.22% 500.1m
Gilles Cojan
Chairman of the Board2.3yrs€532.00k0.010% 256.9k
Gilles Auffret
Senior Independent Director2.5yrs€72.00k0.035% 863.8k
Sophie Javary
Representative Director3.9yrs€48.00kno data
Elisabeth Van Damme
Independent Director3.9yrs€58.50kno data
Celia Cornu
Non-Voting Member1.9yrs€18.00kno data
Virginie Dupérat-Vergne
Independent Director1.9yrs€54.00kno data

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: ELRO.F's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Elior Group S.A.
  • Ticker: ELRO.F
  • Exchange: OTCPK
  • Founded: 1991
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: €2.282b
  • Listing Market Cap: €2.473b
  • Shares outstanding: 173.70m
  • 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 Analysis2020/02/19 01:40
End of Day Share Price2019/12/19 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.