Accor SA (AC) AI Stock Analysis

• Market Cap: €9.32B
• Dividend Yield: 2.64%
• Average Volume (3M): 674.80K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.32
• Revenue Growth: 6.43%
• EPS Growth: -5.77%
• Country: FR
• Employees: 19,423
• Sector: General
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.85
• Shares Outstanding: 234,707,320
• 10 Day Avg. Volume: 612,113
• 30 Day Avg. Volume: 674,804
• PEG Ratio: -0.96
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 21.94
• 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: €57.16
• Price Target Upside: 43.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.29
• Revenue Forecast (FY): €5.95B

• Rating: 56 Neutral
• Price Target: €46.00 ▲(15.78% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by decent but uneven financial performance (profitability and free cash flow positive, but a sharp reported revenue drop and higher leverage are key risks). Technicals are a meaningful drag with the stock trading below major moving averages, and valuation is mixed with a high P/E only partly offset by a moderate dividend yield.

Positive Factors

Profitability & margins

Sustained gross (~53%) and EBIT (~15%) margins in 2025 indicate underlying pricing power and operating leverage across Accor’s portfolio. Durable margins support cash generation, fund reinvestment and brand positioning, and signal structural recovery versus earlier loss-making periods.

Free cash flow generation

Consistent positive operating cash flow (~€810M) and substantial free cash flow (~€613M) reflect durable cash conversion from operations. Reliable FCF supports dividends, reinvestment and balance-sheet repair, enhancing financial flexibility over the coming months.

Asset-light fee-based model & loyalty

A mixed asset-light fee/franchise model plus loyalty programs creates recurring, higher-margin fee income and customer retention. That structural mix diversifies revenue sources and reduces sensitivity to pure room occupancy volatility over the medium term.

Negative Factors

Elevated leverage

Debt-to-equity rising to ~1.0 reduces balance-sheet flexibility and increases interest-rate and refinancing exposure. Higher leverage can constrain capital allocation, limit M&A or buybacks, and heighten vulnerability to shocks over the next several quarters.

Sharp reported 2025 revenue decline

An abrupt reported revenue drop of ~61.7% in 2025 creates uncertainty about top-line sustainability and comparability. Even if partly structural or one-off, such a large swing complicates forecasting, planning and the predictability of margins in the medium term.

OCF low versus debt

Operating cash flow to total debt of ~0.29 implies limited immediate capacity to rapidly deleverage. While FCF is positive, the pace of debt reduction will be constrained, leaving the firm more sensitive to interest costs and refinancing conditions over 2–6 months.

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 generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and ancillary services such as meeting and event hosting. The company operates on a fee-based model, earning management fees from hotel owners and franchise fees from franchises. Additionally, Accor benefits from loyalty programs, which help in customer retention and drive repeat business. Significant partnerships with online travel agencies (OTAs) and corporate clients enhance its visibility and sales channels, contributing to its overall earnings. The company also engages in real estate investments, allowing it to profit from property ownership and management.

Accor SA Financial Statement Overview

Summary

Sustained profitability and positive free cash flow support the score, but 2025 shows weaker earnings versus 2024, a very large reported revenue decline (-61.7%), and rising leverage (debt-to-equity ~1.0) with only moderate cash-flow coverage of debt.

Income Statement

Profitability is solid in the most recent annual period (2025) with healthy gross profit (about 53%) and operating profitability (EBIT margin ~15%), but earnings softened versus 2024 as net profit margin fell to ~8% (from ~11%). Revenue has been resilient over 2023–2025 in absolute terms, yet 2025 shows a sharp reported revenue decline (RevenueGrowthRate -61.7%), which raises questions on sustainability/volatility. Longer-term trend is a clear recovery from 2020–2021 losses to consistent profitability since 2022.

Balance Sheet

Leverage is moderate-to-elevated: debt is roughly equal to equity in 2025 (debt-to-equity ~1.0) and has risen from 2024 (~0.74), reducing balance-sheet flexibility. Equity remains sizable (~€4.3B) supporting a large asset base (~€11.7B), and returns on equity are positive (~10% in 2025), but down from 2023–2024 levels. Overall, the balance sheet is workable, yet the upward drift in leverage is the key risk to monitor.

Cash Flow

Cash generation is positive and improving: operating cash flow (~€810M) and free cash flow (~€613M) were solid in 2025, with strong free-cash-flow growth versus 2024. Free cash flow covered a meaningful portion of earnings (free cash flow to net income ~0.76), indicating decent earnings quality. Offsetting this, operating cash flow remains relatively low versus the company’s debt load (operating cash flow to total debt ~0.29), implying deleveraging capacity is present but not especially strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.64B	5.61B	5.06B	4.22B	2.20B
Gross Profit	2.98B	2.74B	2.55B	1.82B	601.00M
EBITDA	1.20B	1.33B	1.08B	675.00M	22.00M
Net Income	449.00M	610.00M	633.00M	402.00M	50.00M
Balance Sheet
Total Assets	11.74B	12.06B	11.27B	11.71B	10.77B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.38B	1.28B	1.66B	1.67B
Total Debt	4.30B	3.74B	3.37B	4.34B	4.55B
Total Liabilities	7.03B	6.59B	5.96B	7.26B	7.17B
Stockholders Equity	4.29B	5.03B	3.93B	4.06B	3.28B
Cash Flow
Free Cash Flow	613.00M	440.00M	415.00M	385.00M	-343.00M
Operating Cash Flow	810.00M	733.00M	669.00M	496.00M	-263.00M
Investing Cash Flow	-331.00M	-358.00M	16.00M	-196.00M	-111.00M
Financing Cash Flow	-494.00M	-400.00M	-1.04B	-327.00M	-431.00M

Accor SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 39.73 is below the 20-day moving average (MA) of 43.96, below the 50-day MA of 46.05, and below the 200-day MA of 44.97, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 32.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:AC.

Accor SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AC	56 Neutral	€9.32B	29.95	15.99%	2.64%	6.43%	-5.77%
ALLHB	56 Neutral	€172.00M	69.66	―	0.41%	-7.92%	-15.45%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
VAC	54 Neutral	€773.12M	23.27	―	―	2.68%	63.49%