Elior Group SA (ELIOR) AI Stock Analysis

• Market Cap: €701.26M
• Dividend Yield: N/A
• Average Volume (3M): 604.90K
• Price to Earnings (P/E): 643.3
• Beta (1Y): 1.32
• Revenue Growth: 1.60%
• EPS Growth: N/A
• Country: FR
• Employees: 133,156
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 253,611,820
• 10 Day Avg. Volume: 761,778
• 30 Day Avg. Volume: 604,897
• PEG Ratio: 0.35
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 4.71
• 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: €3.25
• Price Target Upside: 26.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €3.00 ▲(17.19% Upside)

Elior Group SA's stock score is primarily influenced by its financial performance and technical analysis. The company is on a recovery path with improved cash flow but faces profitability and leverage challenges. The stock's bullish momentum is tempered by overbought technical indicators. The high P/E ratio suggests overvaluation, impacting the overall score negatively.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and increased demand for Elior's services, enhancing long-term business prospects.

Cash Flow Management

Improved cash flow management enhances Elior's financial stability, providing flexibility for investments and debt servicing, supporting sustainable growth.

Market Position

Elior's strong market position as a global leader in catering services provides a competitive edge, ensuring client retention and long-term revenue streams.

Negative Factors

Profitability Challenges

Negative profit margins highlight ongoing profitability issues, which could hinder reinvestment and growth opportunities if not addressed.

High Leverage

High leverage increases financial risk, potentially impacting Elior's ability to invest in growth initiatives and manage economic downturns.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating shareholder value, which could deter investment and impact long-term financial health.

Elior Group SA Business Overview & Revenue Model

Company Description

Elior Group SA is a leading global player in the contract catering and food services sector, providing tailored solutions across various industries, including healthcare, education, and corporate environments. Founded in France, the company offers a diverse range of services, including catering, facility management, and support services, focusing on quality, sustainability, and customer satisfaction. With a commitment to innovation and healthy eating, Elior aims to enhance the dining experience for its clients and consumers.

How the Company Makes Money

Elior Group generates revenue primarily through long-term contracts with clients in its key sectors, including healthcare facilities, schools, and corporate offices. The company charges fees for its catering and support services, often structured as per-meal or per-service pricing. Additional revenue streams may include product sales, such as ready-to-eat meals and snacks, as well as consultancy services for food management. Significant partnerships with local suppliers and adherence to sustainability practices enhance its market position and contribute to its earnings by ensuring high-quality service delivery and client retention.

Elior Group SA Financial Statement Overview

Summary

Elior Group SA is on a recovery trajectory with revenue and cash flow improvements. However, it still faces profitability challenges with a negative net profit margin and high leverage. The company has managed its cash flow effectively, which is a positive sign.

Income Statement

Elior Group SA has shown a notable recovery in revenue over the years, with a revenue growth rate of 15.90% for the latest period. The gross profit margin is 17.03%, and the net profit margin remains negative at -0.68%, indicating ongoing profitability challenges despite the improvement in EBIT and EBITDA margins to 2.16% and 5.07%, respectively.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.81, highlighting significant leverage. Although stockholders' equity has slightly decreased, the company maintains a reasonable equity ratio of 20.35%. Return on Equity remains negative due to the net loss, suggesting profitability issues.

Cash Flow

Cash flow analysis indicates a strong recovery in free cash flow to €195 million from a negative position previously. The operating cash flow to net income ratio is favorable at -7.29, and the free cash flow to net income ratio is -4.76. Free cash flow growth is positive, indicating improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.14B	6.05B	5.22B	4.45B	3.69B	3.97B
Gross Profit	947.00M	1.03B	794.00M	658.00M	564.00M	603.00M
EBITDA	296.00M	306.00M	126.00M	-147.00M	109.00M	-134.00M
Net Income	1.00M	-41.00M	-93.00M	-427.00M	-100.00M	-450.00M
Balance Sheet
Total Assets	3.77B	3.81B	3.83B	3.30B	3.54B	3.54B
Cash, Cash Equivalents and Short-Term Investments	180.00M	142.00M	45.00M	64.00M	80.00M	41.00M
Total Debt	1.29B	1.41B	1.43B	1.27B	1.17B	1.04B
Total Liabilities	2.95B	3.03B	2.99B	2.57B	2.48B	2.41B
Stockholders Equity	825.00M	775.00M	847.00M	736.00M	1.08B	1.14B
Cash Flow
Free Cash Flow	134.00M	195.00M	-60.00M	-101.00M	-27.00M	-48.00M
Operating Cash Flow	222.00M	299.00M	23.00M	-33.00M	42.00M	50.00M
Investing Cash Flow	-136.00M	-125.00M	-60.00M	-63.00M	-67.00M	-99.00M
Financing Cash Flow	-92.00M	-44.00M	-15.00M	83.00M	57.00M	70.00M

Elior Group SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ELIOR, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.75, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ELIOR.

Elior Group SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	76 Outperform	$5.75B	15.42	10.25%	1.89%	4.83%	52.47%
CEN	75 Outperform	€670.49M	9.75	9.42%	10.00%	25.10%	-1.46%
SDG	74 Outperform	€750.69M	11.83	8.63%	1.59%	1.91%	-4.82%
ALCIS	69 Neutral	€99.04M	13.55	11.36%	1.36%	23.95%	173.40%
DBG	67 Neutral	€1.01B	9.39	10.31%	2.05%	1.10%	10.21%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ELIOR	55 Neutral	€701.26M	643.26	0.12%	―	1.60%	―