Covivio Hotels SCA (COVH) AI Stock Analysis

• Market Cap: €3.70B
• Dividend Yield: 6.3%
• Average Volume (3M): 1.20K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.16
• Revenue Growth: 21.24%
• EPS Growth: 241.67%
• Country: FR
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.76
• Shares Outstanding: 157,990,310
• 10 Day Avg. Volume: 1,643
• 30 Day Avg. Volume: 1,203
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 5.26
• P/FCF Ratio: 1.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €26.00 ▲(9.70% Upside)

Covivio Hotels SCA's strong financial performance and attractive valuation are the most significant factors contributing to the score. The technical analysis indicates potential for a rebound, but past volatility and current technical signals suggest cautious optimism. The absence of earnings call and corporate events data limits the analysis to these core components.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Covivio Hotels' ability to expand its market presence and enhance its portfolio, contributing to long-term stability.

Cash Flow Generation

Strong cash flow generation enhances Covivio Hotels' capacity to invest in growth opportunities and maintain financial flexibility.

Profitability Improvements

Improved profitability indicates effective cost management and operational efficiency, supporting sustainable business growth.

Negative Factors

Past Financial Volatility

Historical financial volatility may pose risks to Covivio Hotels' stability, necessitating vigilant management to mitigate potential impacts.

Equity and Debt Fluctuations

Inconsistent equity and debt levels could affect Covivio Hotels' financial health, impacting its ability to leverage growth opportunities.

Net Income Volatility

Volatility in net income can lead to unpredictable financial performance, challenging Covivio Hotels' long-term strategic planning.

Covivio Hotels SCA Business Overview & Revenue Model

Company Description

Covivio Hotels specialises in holding lease properties in the hotel industry. Société d'Investissements Immobiliers Cotée (SIIC), real estate partner of leading hotel industry operators, Covivio Hotels holds a portfolio worth €6.6 billion. Covivio Hotels is rated BBB+/Stable outlook by Standard and Poor's.

How the Company Makes Money

Covivio Hotels generates revenue primarily through the leasing and management of its hotel properties. The company earns income from long-term lease agreements with hotel operators, who manage the day-to-day operations of the properties. This model allows Covivio to benefit from a stable rental income while minimizing operational risks associated with direct hotel management. Additionally, Covivio may realize capital gains through the acquisition and subsequent sale of hotel assets, as well as through development projects. Key partnerships with major hotel brands enhance its portfolio's attractiveness and profitability, ensuring high occupancy rates and competitive pricing. Factors such as market demand, location quality, and economic conditions also play a significant role in influencing its earnings.

Covivio Hotels SCA Financial Statement Overview

Summary

Covivio Hotels SCA exhibits strong financial performance with significant improvements in profitability and revenue growth. The balance sheet shows a stable financial structure with manageable leverage, and cash flow analysis highlights robust cash generation capabilities. However, past fluctuations and volatility in key metrics suggest careful monitoring is advised.

Income Statement

Covivio Hotels SCA showed strong revenue growth and profitability improvements over the past year. The Gross Profit Margin for 2024 was approximately 59.15%, and the Net Profit Margin significantly improved to 38.36% from a negative figure in 2023. Revenue grew by 6.26% from 2023 to 2024, indicating a positive growth trajectory. The EBIT and EBITDA Margins were robust at 49.21% and 163.31%, respectively, reflecting strong operational efficiency. However, past volatility in net income suggests potential risks.

Balance Sheet

The balance sheet analysis reveals a moderate financial position. The Debt-to-Equity Ratio for 2024 was 0.90, indicating manageable leverage. Return on Equity (ROE) was strong at 6.54%, though lower compared to previous highs. Equity Ratio stood at 48.00%, reflecting a balanced asset financing structure. Despite improvements, historical fluctuations in equity and debt levels highlight potential stability concerns.

Cash Flow

Cash flow metrics demonstrate robust financial health. The Free Cash Flow in 2024 was significantly positive, with a Free Cash Flow Growth Rate of 643.68% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio was exceptionally high at 15.50, and the Free Cash Flow to Net Income Ratio was 9.48, indicating strong cash generation relative to profits. These figures suggest a solid cash flow position, despite historical variability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	509.69M	585.50M	551.00M	471.27M	290.28M	242.88M
Gross Profit	332.38M	346.30M	332.53M	260.52M	155.54M	113.43M
EBITDA	326.91M	956.00M	88.90M	321.19M	231.39M	119.19M
Net Income	205.77M	224.60M	-11.57M	478.79M	50.29M	-337.40M
Balance Sheet
Total Assets	7.13B	7.16B	6.72B	7.03B	6.86B	6.81B
Cash, Cash Equivalents and Short-Term Investments	607.10M	577.00M	108.78M	127.41M	145.18M	101.76M
Total Debt	2.94B	3.08B	2.74B	2.78B	2.96B	3.15B
Total Liabilities	3.46B	3.55B	3.17B	3.27B	3.46B	3.69B
Stockholders Equity	3.50B	3.43B	3.39B	3.58B	3.20B	2.94B
Cash Flow
Free Cash Flow	202.27M	2.13B	286.31M	124.64M	13.46M	-28.23M
Operating Cash Flow	336.53M	3.48B	324.12M	195.70M	87.21M	24.24M
Investing Cash Flow	120.67M	808.00M	-5.75M	99.99M	-2.99M	47.74M
Financing Cash Flow	-287.34M	388.00M	-327.60M	-383.23M	-100.48M	-184.34M

Covivio Hotels SCA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.70
• 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:COVH, the sentiment is Positive. The current price of 23.7 is above the 20-day moving average (MA) of 23.28, below the 50-day MA of 24.36, and above the 200-day MA of 22.79, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:COVH.

Covivio Hotels SCA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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%
ICAD	52 Neutral	€1.57B	-8.38	-4.49%	20.31%	-6.91%	80.39%