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Accor SA (ACCYY)
OTHER OTC:ACCYY
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Accor SA
(OTC:ACCYY)
Select Model
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Rating:70Outperform
Price Target:
$12.00
▲(10.80% Upside)
Accor SA's strong financial performance is the most significant factor, with robust revenue and profit growth, effective leverage management, and solid cash flow generation. However, technical indicators suggest the stock is overbought, and the valuation appears high, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and successful expansion strategies, enhancing long-term business stability.
Cash Generation
Strong cash generation capabilities provide financial flexibility for reinvestment and debt management, supporting sustainable growth.
Margin Improvement
Improved profit margins reflect operational efficiency and effective cost management, contributing to long-term profitability.
Negative Factors
EPS Decline
Declining EPS growth may indicate challenges in maintaining profitability, potentially affecting investor confidence and future earnings.
High Leverage
While managed, high leverage can limit financial flexibility and increase risk during economic downturns, impacting long-term stability.
Employee Count
A large workforce can lead to higher fixed costs and operational complexity, potentially affecting margin sustainability and efficiency.
Accor SA (ACCYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.61B
Dividend Yield2.67%
Average Volume (3M)2.46K
Price to Earnings (P/E)21.1
Beta (1Y)1.14
Revenue Growth7.02%
EPS Growth-5.37%
CountryUS
Employees19,423
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.18
Shares Outstanding1,225,000,700
10 Day Avg. Volume2,336
30 Day Avg. Volume2,463
Financial Highlights & Ratios
PEG Ratio2.56
Price to Book (P/B)2.42
Price to Sales (P/S)2.18
P/FCF Ratio27.72
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit6.42
Enterprise Value/Ebitda14.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Accor SA Business Overview & Revenue Model
Company DescriptionAccor SA operates a chain of hotels. It operates through two segments, HotelServices, and Hotel Assets & Other. The company owns, operates, manages, and franchises hotels. It also provides digital services to independent hotel operators through D-edge platform; ResDiary, a flat-rate online table reservation system that is designed for restaurant owners; Gekko solutions, including digital hotel distribution and loyalty platforms for the travel industry and large companies; and concierge and customized services through John Paul, as well as hotel booking services; and other services in events, fine dining, and entertainment through Paris Society and Potel & Chabot platforms. In addition, the company offers distribution activities, such as private sales of hotel accommodation and luxury vacations through VeryChic platform; rental of private residences operated by onefinestay; and coworking spaces through Wojo and Mama Works. Further, it provides hotel management, procurement, cash management, IT, and advertising services, as well as various advisory services. As of December 31, 2021, the company operated 5,298 hotels with 777,714 rooms in 110 countries worldwide. The company was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.
How the Company Makes MoneyAccor SA generates revenue primarily through hotel management and franchising fees, which are derived from the operation of hotels and the management of hotel brands under its portfolio. The company earns fees based on a percentage of hotel revenues and profits from properties it manages or franchises. Additionally, Accor benefits from ancillary services such as food and beverage sales, event hosting, and loyalty programs that attract repeat customers. Strategic partnerships with travel agencies, online booking platforms, and other travel service providers also contribute to its revenue streams. The company has been expanding its footprint through acquisitions and partnerships, enhancing its market presence and driving earnings growth.
Accor SA Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant revenue and EBITDA growth, a robust pipeline, and impressive shareholder returns. However, challenges remain in certain geographic markets like China, and FX impacts coupled with cost pressures affected operating leverage.Q4-2024 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue reached €5.606 billion, up 11% year-over-year, with recurring EBITDA reaching €1.120 billion, up 12%.
Record High Signings and Pipeline Growth
The value of signings increased by 11% above 2024, with a pipeline growth of 3.8%, supporting a midterm goal of delivering net unit growth of 3% to 5%.
Impressive Luxury and Lifestyle Segment Performance
Luxury and Lifestyle RevPAR grew by 10%, with notable openings like Fairmount Long Beach, SLS Cancún, and Mama Shelter in Dubai.
Strong Shareholder Returns
Returned €686 million to shareholders in 2024, equating to a 7.5% yield, with plans for a dividend increase of 7% over the previous year.
Positive RevPAR Growth
RevPAR growth of 5.8% in the fourth quarter and 5.7% for the full year, exceeding the high end of guidance.
Diversity and Inclusion Progress
Achieved 39% gender parity in leadership positions, with a goal to reach 50%.
AccorInvest Performance
Share of profit from AccorInvest increased significantly, with Accorinvest engaged in a large asset disposal plan.
Negative Updates
Challenges in Certain Geographic Markets
Performance in China was below expectations, with RevPAR still negative in the mid-single digits.
Operating Leverage Concerns
Despite strong revenue growth, operating leverage did not translate to an EBITDA number above the top end of the range due to FX impacts and cost pressures.
FX Impact on Financials
FX had a negative impact of about €22 million to €25 million on EBITDA.
Luxury Segment Incentive Fee Waivers
Termination of incentive fee waivers primarily for Sofitel and Fairmont in France impacted fee revenue.
Company Guidance
In the call, Accor's management provided guidance for the fiscal year 2024, highlighting several key metrics. The company achieved a recurring EBITDA of €1.120 billion, marking a 12% increase year-over-year, and reported a revenue of €5.606 billion, up 11% from the previous year. The net unit growth was 3.5%, aligning with their 3% to 4% guidance, while RevPAR rose by 5.7% for the full year, surpassing the upper end of their guidance range. Additionally, Accor's pipeline expanded by 3.8%, and they returned €686 million to shareholders, equating to a 7.5% yield. For 2025, they anticipate international travel to grow by 3% to 5%, with strong performance expected in the Middle East and improving conditions in Asia-Pacific and China. The company's management reiterated their commitment to delivering a 9% to 12% CAGR in EBITDA from 2023 to 2027, with consistent margin improvements of 100 basis points annually. They also announced the launch of the sale of their 30% stake in AccorInvest, expected to span 12 to 18 months.Accor SA Financial Statement Overview
Summary
Accor SA exhibits a strong financial position with impressive revenue and profit growth, effective leverage management, and solid cash flow generation. The company has successfully navigated past economic challenges, positioning itself for continued stability and growth in the hospitality sector.Income Statement
Accor SA has demonstrated a strong recovery post-pandemic with consistent revenue growth, showing a revenue increase from €2.2 billion in 2021 to €5.6 billion in 2024. The gross profit margin has remained healthy, with a notable improvement in net profit margin from a loss in 2020 to 10.9% in 2024. The EBIT and EBITDA margins have also seen a significant rebound, indicating operational efficiency and profitability.87
Very Positive
Balance Sheet
The balance sheet of Accor SA is stable, with a reasonable debt-to-equity ratio of 0.74 in 2024, down from previous years, indicating managed leverage. The company maintains a strong equity position with an equity ratio of 41.7%. Return on equity has improved significantly, reflecting enhanced profitability and efficient use of equity.78
Positive
Cash Flow
Accor SA's cash flow position is robust, marked by a substantial increase in operating cash flow and free cash flow over the years. Free cash flow grew from €-638 million in 2020 to €440 million in 2024, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating effective cash earnings conversion.81
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.67B | 5.61B | 5.06B | 4.22B | 2.20B | 1.62B |
| Gross Profit | 2.79B | 2.74B | 1.06B | 1.82B | 601.00M | 183.00M |
| EBITDA | 1.28B | 1.33B | 904.00M | 675.00M | 22.00M | -485.00M |
| Net Income | 590.00M | 610.00M | 633.00M | 402.00M | 50.00M | -1.99B |
Balance Sheet | ||||||
| Total Assets | 11.83B | 12.06B | 11.27B | 11.71B | 10.77B | 10.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 1.38B | 1.28B | 1.66B | 1.67B | 2.48B |
| Total Debt | 4.27B | 3.74B | 3.37B | 4.34B | 4.55B | 3.86B |
| Total Liabilities | 7.06B | 6.59B | 5.96B | 7.26B | 7.17B | 7.39B |
| Stockholders Equity | 4.35B | 5.03B | 4.93B | 5.06B | 4.28B | 4.09B |
Cash Flow | ||||||
| Free Cash Flow | 606.00M | 440.00M | 415.00M | 385.00M | -343.00M | -563.00M |
| Operating Cash Flow | 797.00M | 733.00M | 669.00M | 496.00M | -263.00M | -497.00M |
| Investing Cash Flow | -330.00M | -358.00M | 16.00M | -157.00M | -99.00M | 885.00M |
| Financing Cash Flow | -205.00M | -400.00M | -1.04B | -381.00M | -431.00M | -229.00M |
Accor SA Technical Analysis
Positive
10.83
Price Trends
10.08
Positive
10.23
Positive
10.01
Positive
Market Momentum
0.17
Positive
61.09
Neutral
94.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACCYY, the sentiment is Positive. The current price of 10.83 is above the 20-day moving average (MA) of 10.60, above the 50-day MA of 10.08, and above the 200-day MA of 10.01, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 94.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACCYY.
Accor SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.96B | 26.75 | 32.62% | 3.81% | 6.06% | 8.01% | |
70 Outperform | $12.61B | 21.08 | 15.48% | 2.67% | 7.02% | -5.37% | |
66 Neutral | $19.88B | 27.68 | ― | 1.30% | 8.89% | 23.20% | |
63 Neutral | $65.36B | 40.75 | ― | 0.21% | 6.68% | 48.03% | |
62 Neutral | $81.75B | 32.18 | ― | 0.87% | 4.68% | -1.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $15.30B | ― | -2.45% | 0.37% | 2.61% | -106.74% |
* Consumer Cyclical Sector Average
ACCYY
Accor SA
10.83
1.73
19.01%
HTHT
H World Group
47.21
15.90
50.77%
H
Hyatt Hotels
161.44
0.31
0.19%
IHG
Intercontinental Hotels Group
135.18
8.44
6.66%
MAR
Marriott International
304.65
17.82
6.21%
HLT
Hilton Worldwide Holdings
281.18
27.75
10.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.