Covivio Hotels SCA (COVH) AI Stock Analysis

• Market Cap: €3.74B
• Dividend Yield: 6.33%
• Average Volume (3M): 1.20K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.15
• 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

• 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.

Covivio Hotels SCA Business Overview & Revenue Model

Company Description

Covivio Hotels SCA (COVH) is a prominent player in the hospitality sector, focusing on the acquisition, development, and management of hotel properties across Europe. The company operates within the broader real estate investment trust (REIT) framework, specializing in a diverse portfolio that includes hotels, serviced apartments, and other lodging facilities. Covivio is dedicated to enhancing guest experiences while ensuring sustainable and innovative practices in its operations.

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 is stable with manageable leverage, and cash flow analysis shows robust cash generation capabilities. However, past volatility in key metrics suggests 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: Negative
• Last Price: 23.70
• 50DMA: Negative
• 100DMA: Negative
• 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:COVH, the sentiment is Negative. The current price of 23.7 is below the 20-day moving average (MA) of 25.37, below the 50-day MA of 24.64, and above the 200-day MA of 22.18, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	€9.46B	8.13	14.13%	5.04%	6.74%	74.00%
COV	―	€6.37B	15.15	5.11%	6.15%	8.36%	―
GFC	―	€6.11B	12.00	4.93%	6.16%	3.84%	―
COVH	―	€3.74B	17.23	6.03%	6.33%	21.24%	241.67%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ALTA	―	€2.39B	352.90	-0.71%	7.92%	-4.87%	97.55%
ICAD	―	€1.63B	-8.70	-4.49%	20.18%	-6.91%	80.39%