Accor SA (AC) AI Stock Analysis

• Market Cap: €11.81B
• Dividend Yield: 2.61%
• Average Volume (3M): 657.27K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.27
• Revenue Growth: 10.88%
• EPS Growth: 2.54%
• Country: FR
• Employees: 19,423
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Travel Lodging
• EPS (TTM): 1.43
• Shares Outstanding: 244,966,890
• 10 Day Avg. Volume: 610,102
• 30 Day Avg. Volume: 657,273
• PEG Ratio: 0.02
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.92
• 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: €52.89
• Price Target Upside: 9.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: €49.00 ▲(1.62%Upside)

Accor SA's strong financial performance and stable valuation metrics are the primary drivers of its stock score. The company's robust revenue growth and profitability margins highlight its financial health, despite technical indicators suggesting mixed momentum. The absence of earnings call and corporate events data does not impact the score, maintaining focus on core financial and technical elements.

Positive Factors

Geographic Diversification

The Q1 conference call was confident and reassuring, highlighting the benefits of geographic and price point diversification.

Revenue Performance

Another quarter of RevPAR outperformance is expected, indicating strong revenue performance.

Shareholder Returns

Supernormal shareholder returns are anticipated from the sale of Essendi.

Negative Factors

Earnings Estimates

New 2025 net income estimates are approximately 8% below consensus due to associate income and foreign exchange impacts.

Earnings Volatility

Shares trade at a 23% discount compared to IHG, indicating a potential value opportunity.

Market Valuation

Outlook commentary has moderated compared to the FY24 results due to a more volatile geopolitical and economic environment.

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 its hotel operations, which include room bookings, food and beverage services, and other hospitality-related services. The company operates a mix of owned, leased, managed, and franchised properties, allowing it to leverage different revenue streams. Room bookings and ancillary services within its hotels constitute significant portions of its income. Additionally, Accor earns revenue from management and franchise fees collected from hotel owners who operate under its various brand names. Strategic partnerships and alliances, along with loyalty programs, also play a vital role in enhancing customer retention and driving sales. Accor's expansion into lifestyle hospitality and digital services further contributes to its revenue by offering diverse experiences and personalized services to its guests.

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. Overall, Accor SA is well-positioned for future growth and financial health in the competitive hospitality industry.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.61B	5.06B	4.22B	2.20B	1.62B
Gross Profit	2.74B	2.55B	1.82B	601.00M	183.00M
EBITDA	1.33B	1.05B	675.00M	22.00M	-1.37B
Net Income	610.00M	633.00M	402.00M	50.00M	-2.28B
Balance Sheet
Total Assets	12.06B	11.27B	11.71B	10.77B	10.55B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.28B	1.66B	1.67B	2.48B
Total Debt	3.74B	3.37B	4.34B	4.55B	4.86B
Total Liabilities	6.59B	5.96B	7.26B	7.17B	7.39B
Stockholders Equity	5.03B	3.93B	4.06B	3.28B	3.09B
Cash Flow
Free Cash Flow	440.00M	415.00M	385.00M	-343.00M	-563.00M
Operating Cash Flow	733.00M	669.00M	496.00M	-263.00M	-497.00M
Investing Cash Flow	-358.00M	16.00M	-196.00M	-111.00M	885.00M
Financing Cash Flow	-400.00M	-1.04B	-327.00M	-431.00M	-195.00M

Accor SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 48.22 is above the 20-day moving average (MA) of 46.07, above the 50-day MA of 45.50, and above the 200-day MA of 43.95, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.17 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	71 Outperform	€11.81B	20.61	14.72%	2.61%	10.88%	2.54%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.63%	1.71%	-25.14%
0OQ0	―	€748.15M	66.86		―	―	―
MLHMC	―	€312.21M	11.96		―	―	―
MLHOT	―	€51.92M	10.26		2.90%	―	―
HDP	―	€16.55M	―		―	―	―
ALLHB	58 Neutral	€175.56M	41.13		0.81%	-0.93%	-49.68%

Accor SA Corporate Events

Accor Files 2023 Universal Registration Document Highlighting 2024 Financial Strategies

Accor has filed its 2023 Universal Registration Document with the Autorité des Marchés Financiers, which includes the 2024 annual financial report, corporate governance details, and a share buyback program. This document is available to the public and provides comprehensive insights into Accor’s financial and operational strategies, potentially impacting stakeholders by highlighting the company’s commitment to transparency and strategic planning.