Accor SA (AC) AI Stock Analysis

• Market Cap: €10.97B
• Dividend Yield: 2.68%
• Average Volume (3M): 674.80K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.33
• Revenue Growth: 6.43%
• EPS Growth: -5.77%
• Country: FR
• Employees: 19,423
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.80
• Shares Outstanding: 245,000,140
• 10 Day Avg. Volume: 612,113
• 30 Day Avg. Volume: 674,804
• PEG Ratio: -8.04
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 27.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €51.05
• Price Target Upside: 8.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €50.00 ▲(6.52% Upside)

Accor SA's strong financial performance and stable valuation are the primary drivers of its stock score. The technical analysis suggests bullish momentum, but caution is advised due to overbought signals. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

Sustained revenue growth indicates successful market expansion and increased demand for Accor's services, strengthening its competitive position.

Profitability Margins

Improved profitability margins reflect efficient cost management and operational effectiveness, enhancing long-term financial health.

Cash Flow Management

Effective cash flow management supports operational stability and provides resources for future growth and investment opportunities.

Negative Factors

Debt Management

While leverage is controlled, increasing liabilities require careful management to avoid potential financial strain and maintain stability.

EPS Growth Decline

A decline in EPS growth may indicate challenges in profitability or cost pressures, potentially impacting investor confidence and valuation.

Equity Ratio Concerns

While the equity ratio is stable, rising liabilities could pressure financial resources, necessitating prudent financial management.

Accor SA Business Overview & Revenue Model

Company Description

Accor 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 Money

Accor SA generates revenue primarily through hotel management and franchising fees, which include a percentage of room revenues and fixed fees from hotel owners who operate under its brand. The company also earns income from its owned and leased hotels, where it retains a portion of the hotel’s operating profits. Other significant revenue streams include ancillary services such as food and beverage sales, loyalty programs, and partnerships with travel agencies and online booking platforms. Accor has established strategic partnerships with various airlines and travel companies, enhancing its distribution channels and customer reach, thus contributing to its overall earnings.

Accor SA Financial Statement Overview

Summary

Accor SA exhibits a robust financial position with steady revenue growth, strong profitability margins, and effective cash flow management. The company's balance sheet reflects stability with a healthy equity base, although there is a need for cautious debt management.

Income Statement

Accor SA demonstrates strong financial performance with a notable revenue growth rate of 10.9% from 2023 to 2024 and consistent improvement in gross and net profit margins. The gross profit margin increased to 48.9%, and the net profit margin improved to 10.9% in 2024, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, showcasing solid operational performance.

Balance Sheet

The balance sheet is stable with a favorable equity ratio of 41.7%, reflecting a solid equity base. The debt-to-equity ratio is manageable at 0.74, indicating controlled leverage. Return on equity has improved to 12.1%, suggesting enhanced shareholder value. However, attention to increasing liabilities is necessary to maintain long-term stability.

Cash Flow

Accor SA's cash flow is strong, with a positive free cash flow growth rate of 6% from 2023 to 2024. The operating cash flow to net income ratio is 1.2, indicating effective cash generation relative to profits. The free cash flow to net income ratio of 0.72 suggests substantial cash support for operations and growth initiatives.

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	1.96B	2.74B	2.55B	1.82B	601.00M	183.00M
EBITDA	1.09B	1.33B	1.08B	675.00M	22.00M	-1.37B
Net Income	586.00M	610.00M	633.00M	402.00M	50.00M	-2.28B
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	4.28B	3.74B	3.37B	4.34B	4.55B	4.86B
Total Liabilities	7.06B	6.59B	5.96B	7.26B	7.17B	7.39B
Stockholders Equity	4.35B	5.03B	3.93B	4.06B	3.28B	3.09B
Cash Flow
Free Cash Flow	551.00M	440.00M	415.00M	385.00M	-343.00M	-563.00M
Operating Cash Flow	809.00M	733.00M	669.00M	496.00M	-263.00M	-497.00M
Investing Cash Flow	-348.00M	-358.00M	16.00M	-196.00M	-111.00M	885.00M
Financing Cash Flow	-201.00M	-400.00M	-1.04B	-327.00M	-431.00M	-195.00M

Accor SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AC, the sentiment is Positive. The current price of 46.94 is above the 20-day moving average (MA) of 45.74, above the 50-day MA of 43.26, and above the 200-day MA of 43.79, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AC.

Accor SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AC	72 Outperform	€10.97B	19.92	15.99%	2.68%	6.43%	-5.77%
ALLHB	56 Neutral	€175.56M	41.30	―	0.41%	-7.92%	-15.45%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VAC	53 Neutral	€722.31M	63.84	―	―	-1.03%	―