Covivio SA (COV) AI Stock Analysis

• Market Cap: €6.13B
• Dividend Yield: 6.29%
• Average Volume (3M): 116.62K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.66
• Revenue Growth: 8.36%
• EPS Growth: N/A
• Country: FR
• Employees: 989
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2.38
• Shares Outstanding: 111,623,470
• 10 Day Avg. Volume: 89,066
• 30 Day Avg. Volume: 116,620
• PEG Ratio: -0.73
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 1.36
• 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: €60.86
• Price Target Upside: 9.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €59.00 ▲(5.92% Upside)

Covivio SA's overall stock score is driven by solid financial performance and attractive valuation, offset by bearish technical indicators. The company's strong cash flow and revenue recovery are positive, but high leverage and low returns on equity pose risks. The technical analysis suggests caution due to bearish momentum.

Positive Factors

Revenue Growth

The significant revenue growth indicates a strong market position and effective business strategy, enhancing long-term financial stability.

Cash Flow Management

Efficient cash flow management supports ongoing operations and investments, providing a buffer against economic fluctuations.

Operational Efficiency

High operational efficiency reflects strong management and cost control, ensuring sustainable profitability and competitive advantage.

Negative Factors

High Leverage

Significant leverage increases financial risk, particularly in economic downturns, potentially impacting long-term financial health.

Low Return on Equity

Low returns on equity suggest inefficient use of shareholders' funds, potentially limiting investor appeal and growth prospects.

Net Profit Margin

A low net profit margin indicates challenges in cost management and profitability, which could constrain future earnings growth.

Covivio SA Business Overview & Revenue Model

Company Description

Covivio SA (COV) is a prominent European real estate company focused on the ownership, development, and management of high-quality properties across key markets in France, Germany, and Italy. The company operates primarily in the office, residential, and hotel sectors, with a strategic emphasis on creating sustainable and innovative spaces that enhance the quality of life for tenants and communities. Covivio's portfolio includes a mix of income-generating assets and development projects, catering to both corporate clients and residential tenants.

How the Company Makes Money

Covivio generates revenue primarily through rental income derived from its diversified portfolio of commercial and residential properties. The company leases spaces to a variety of tenants, including multinational corporations and local businesses, which provide stable and recurring cash flows. Additionally, Covivio engages in property development, where it undertakes construction and renovation projects to enhance the value of its assets, subsequently leasing or selling these properties for profit. Key revenue streams include long-term leases, short-term rental agreements, and gains from property sales. Strategic partnerships with local governments and private developers also play a significant role in enabling Covivio to acquire prime locations and maximize its earnings potential.

Covivio SA Financial Statement Overview

Summary

Covivio SA demonstrates solid operational performance with strong revenue recovery and efficient cash flow management. However, high leverage and low returns on equity amid fluctuating net income highlight the need for improved financial stability.

Income Statement

Covivio SA's income statement shows moderate revenue growth with a recent recovery in revenue to €1.28 billion in 2024 from €1.02 billion in 2023. The gross profit margin improved to 76.6%, but the net profit margin is low at 5.3% due to high operational costs and interest expenses. EBIT and EBITDA margins are healthy at 37.3% and 133.2%, respectively, indicating solid operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.31, reflecting significant leverage, which could pose risks in economic downturns. The equity ratio is 33.1%, which is stable but could be improved. Return on equity stands at a modest 0.8%, suggesting limited returns for shareholders.

Cash Flow

Covivio SA's cash flow analysis reveals a strong operating cash flow, significantly exceeding net income, indicating high cash generation efficiency. Free cash flow has grown significantly, reflecting effective capital management. However, the free cash flow to net income ratio is skewed by low net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.28B	1.02B	1.20B	1.06B	1.03B
Gross Profit	466.49M	977.00M	826.57M	896.82M	798.84M	780.72M
EBITDA	768.55M	1.70B	660.17M	828.91M	740.98M	729.39M
Net Income	417.96M	68.10M	-1.42B	620.69M	923.60M	359.77M
Balance Sheet
Total Assets	25.63B	24.89B	25.03B	27.73B	28.30B	27.46B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.04B	900.62M	461.54M	1.06B	1.25B
Total Debt	11.24B	10.75B	11.04B	11.27B	12.14B	12.59B
Total Liabilities	13.61B	12.87B	13.06B	13.64B	14.68B	14.89B
Stockholders Equity	8.22B	8.23B	7.96B	9.44B	9.19B	8.58B
Cash Flow
Free Cash Flow	261.73M	3.85B	540.66M	-7.08M	-157.86M	-285.14M
Operating Cash Flow	872.20M	9.80B	1.03B	560.75M	539.65M	346.18M
Investing Cash Flow	-187.08M	-1.37B	171.01M	323.80M	203.24M	-686.87M
Financing Cash Flow	-574.15M	-7.39B	-722.91M	-1.52B	-914.55M	292.59M

Covivio SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.70
• 50DMA: Negative
• 100DMA: Negative
• 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:COV, the sentiment is Positive. The current price of 55.7 is above the 20-day moving average (MA) of 55.32, below the 50-day MA of 56.18, and above the 200-day MA of 52.70, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:COV.

Covivio SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARM	80 Outperform	€2.25B	6.40	―	7.41%	16.69%	574.43%
LI	72 Outperform	€9.35B	8.04	14.13%	5.06%	6.74%	74.00%
GFC	69 Neutral	€5.90B	11.59	4.93%	6.41%	3.84%	―
COVH	68 Neutral	€3.70B	17.01	6.03%	6.30%	21.24%	241.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
COV	61 Neutral	€6.13B	14.59	5.11%	6.29%	8.36%	―
ALTA	58 Neutral	€2.30B	-192.82	-0.71%	7.69%	-4.87%	97.55%