Covivio Hotels SCA (COVH) AI Stock Analysis

• Market Cap: €3.76B
• Dividend Yield: 6.33%
• Average Volume (3M): 915.00
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.15
• Revenue Growth: 21.46%
• EPS Growth: 233.75%
• Country: FR
• Employees: 19
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.62
• Shares Outstanding: 157,990,310
• 10 Day Avg. Volume: 1,504
• 30 Day Avg. Volume: 915
• PEG Ratio: <0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.59
• 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: €26.00
• Price Target Upside: 9.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: €26.00 ▲(9.24%Upside)

The overall stock score of 76.1 reflects Covivio Hotels SCA's strong financial performance and positive technical analysis. The company's robust cash flow and operational efficiency are its strengths, though historical volatility warrants attention. Fair valuation with a high dividend yield also supports the score, making it an attractive option for income-focused investors.

Covivio Hotels SCA Business Overview & Revenue Model

Company Description

Covivio Hotels SCA (COVH) is a leading European real estate investment trust (REIT) specializing in the ownership and management of hotel properties. The company primarily operates in the hospitality and real estate sectors, offering a diverse portfolio of high-quality hotel assets across major European cities. Covivio Hotels partners with prominent hotel operators to manage its properties, ensuring a blend of premium services and strategic locations that cater to both business and leisure travelers.

How the Company Makes Money

Covivio Hotels SCA generates revenue primarily through the leasing of its hotel properties to various hotel operators. The company's revenue model is based on long-term lease agreements with fixed and variable components, allowing it to benefit from stable income streams while also participating in the upside potential linked to hotel performance. Additionally, Covivio Hotels may engage in strategic asset management activities, such as property renovations and portfolio optimization, to enhance the value and profitability of its holdings. Key partnerships with leading hotel brands and operators are crucial to its earnings, as they ensure high occupancy rates and consistent demand for its properties.

Covivio Hotels SCA Financial Statement Overview

Summary

Covivio Hotels SCA exhibits a strong financial performance with improvements in profitability and revenue growth. The balance sheet shows a stable financial structure with manageable leverage. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	585.50M	551.00M	471.27M	290.28M	242.88M
Gross Profit	346.30M	332.53M	260.52M	155.54M	113.43M
EBITDA	956.00M	316.00M	321.19M	231.39M	63.55M
Net Income	224.60M	-11.57M	478.79M	50.29M	-337.40M
Balance Sheet
Total Assets	7.16B	6.72B	7.03B	6.86B	6.81B
Cash, Cash Equivalents and Short-Term Investments	577.00M	108.78M	127.41M	142.97M	100.85M
Total Debt	3.08B	2.74B	2.78B	2.96B	3.15B
Total Liabilities	3.55B	3.17B	3.27B	3.46B	3.69B
Stockholders Equity	3.43B	3.39B	3.58B	3.20B	2.94B
Cash Flow
Free Cash Flow	2.13B	286.31M	124.64M	13.46M	-28.23M
Operating Cash Flow	3.48B	324.12M	195.70M	87.21M	24.24M
Investing Cash Flow	808.00M	-5.75M	89.20M	-3.83M	42.07M
Financing Cash Flow	388.00M	-327.60M	-311.25M	-27.02M	-122.29M

Covivio Hotels SCA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 23.8 is above the 20-day moving average (MA) of 22.97, above the 50-day MA of 22.78, and above the 200-day MA of 19.94, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 is Negative, 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
COVH	76 Outperform	€3.76B	17.63	6.05%	6.33%	21.46%	233.75%
LI	76 Outperform	€9.40B	8.68	13.21%	5.47%	5.89%	469.38%
Sector *	64 Neutral	€2.54B	19.30	3.70%	5.55%	3.72%	-0.02%
GFC	63 Neutral	€6.55B	12.88	4.93%	5.80%	3.84%	―
COV	62 Neutral	€6.15B	14.63	5.11%	6.26%	-7.25%	―
ALTA	59 Neutral	€2.37B	355.70	0.35%	7.83%	2.24%	―
ICAD	54 Neutral	€1.57B	―	-4.49%	19.13%	-6.91%	80.39%

Covivio Hotels SCA Corporate Events

Covivio Hotels Prepares for April 2025 Mixed General Meeting

Covivio Hotels has announced the availability of preparatory documents for its upcoming Mixed General Meeting scheduled for April 15, 2025. The meeting will be held at the company’s headquarters in Paris, and the necessary documents can be accessed on the company’s website or requested by shareholders. This announcement facilitates shareholder engagement and ensures transparency in the company’s governance processes.