Accor SA (AC) AI Stock Analysis

• Market Cap: €11.56B
• Dividend Yield: 2.64%
• Average Volume (3M): 674.80K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.28
• 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: €56.70
• Price Target Upside: 15.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.28
• Revenue Forecast (FY): €5.96B

• Rating: 62 Neutral
• Price Target: €52.00 ▲(5.56% Upside)
• Action: Downgraded Date: 03/02/26
• Date: Action: Downgraded 03/02/26

The score is held back primarily by financial stability risks—most notably the sharp reported 2025 revenue decline and rising leverage—despite ongoing profitability and positive free cash flow. Technicals are supportive with the stock trading above major moving averages and a positive MACD, but a higher P/E (~30.6) limits the valuation score, with only moderate offset from the ~2.56% dividend yield.

Positive Factors

Brand portfolio & fee-based model

A multi-tier brand portfolio across luxury to economy plus a fee/franchise model reduces capital intensity and spreads demand risk. Durable brand breadth supports steady fee revenue, cross-selling via loyalty programs, and resilience to localized downturns over months to years.

Healthy margins and operating profitability

Sustained gross and EBIT margins near mid-teens indicate structural pricing power and operating leverage across its portfolio. Consistent profitability since 2022 shows the business can convert bookings to operating profit, supporting reinvestment and durability of cash generation.

Strong free cash flow generation

Robust and growing free cash flow, with FCF covering a meaningful share of net income (~0.76), provides a durable source to fund debt reduction, capex, and shareholder returns. Positive FCF underpins balance-sheet repair and strategic flexibility over coming quarters.

Negative Factors

Sharp reported 2025 revenue drop

A very large reported revenue decline introduces structural uncertainty in forecasting and cash-flow predictability. Even if partly non-recurring, such volatility complicates multi-quarter planning, pressures margin sustainability, and raises execution risk for strategic initiatives.

Rising leverage

An upward drift in debt-to-equity reduces financial flexibility and increases interest and refinancing exposure. Elevated leverage limits capacity for opportunistic investments or aggressive buybacks and makes the company more sensitive to cyclical revenue shocks over the medium term.

OCF low relative to debt

Operating cash flow covering only a small fraction of total debt constrains rapid deleveraging and heightens reliance on refinancing or asset sales. This ratio limits resilience to adverse travel cycles and may force prioritization between debt repayment and growth spending.

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

Profitable with solid 2025 gross (~53%) and EBIT (~15%) margins and positive free cash flow (~€613M), but earnings softened vs 2024 (net margin ~8% vs ~11%) and the reported 2025 revenue decline (-61.7%) is a major stability concern. Leverage has increased (debt-to-equity ~1.0), and cash flow coverage of debt is only moderate (OCF/total debt ~0.29).

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.67B	5.64B	5.61B	5.06B	4.22B	2.20B
Gross Profit	1.96B	2.98B	2.74B	2.55B	1.82B	601.00M
EBITDA	1.09B	1.20B	1.33B	1.08B	675.00M	22.00M
Net Income	586.00M	449.00M	610.00M	633.00M	402.00M	50.00M
Balance Sheet
Total Assets	11.83B	11.74B	12.06B	11.27B	11.71B	10.77B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.21B	1.38B	1.28B	1.66B	1.67B
Total Debt	4.28B	4.30B	3.74B	3.37B	4.34B	4.55B
Total Liabilities	7.06B	7.03B	6.59B	5.96B	7.26B	7.17B
Stockholders Equity	4.35B	4.29B	5.03B	3.93B	4.06B	3.28B
Cash Flow
Free Cash Flow	551.00M	613.00M	440.00M	415.00M	385.00M	-343.00M
Operating Cash Flow	809.00M	810.00M	733.00M	669.00M	496.00M	-263.00M
Investing Cash Flow	-348.00M	-331.00M	-358.00M	16.00M	-196.00M	-111.00M
Financing Cash Flow	-201.00M	-494.00M	-400.00M	-1.04B	-327.00M	-431.00M

Accor SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.26
• 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 49.26 is above the 20-day moving average (MA) of 48.67, above the 50-day MA of 47.68, and above the 200-day MA of 45.22, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 58.02 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	62 Neutral	€11.56B	30.60	15.99%	2.64%	6.43%	-5.77%
ALLHB	56 Neutral	€172.00M	40.46	―	0.41%	-7.92%	-15.45%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
VAC	54 Neutral	€854.40M	25.52	―	―	2.68%	63.49%