Elis SA (ELIS) AI Stock Analysis

• Market Cap: €5.56B
• Dividend Yield: 2.02%
• Average Volume (3M): 340.64K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.98
• Revenue Growth: 6.13%
• EPS Growth: 27.24%
• Country: FR
• Employees: 56,757
• Sector: Industrials
• Sector Strength: 92
• Industry: Specialty Business Services
• EPS (TTM): 0.93
• Shares Outstanding: 236,664,440
• 10 Day Avg. Volume: 408,604
• 30 Day Avg. Volume: 340,641
• PEG Ratio: 0.41
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.16
• 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: €27.60
• Price Target Upside: 17.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: €27.00 ▲(14.80%Upside)

Elis SA exhibits strong financial performance with robust revenue growth and profitability. Technical analysis indicates positive momentum, supporting the stock's upward trend. Valuation is fair, offering some income potential. The financial strength and technical momentum are the most significant factors influencing the score.

Elis SA Business Overview & Revenue Model

Company Description

Elis SA is a leading international provider of textile, hygiene, and facility services solutions. Operating primarily in Europe and Latin America, the company offers a wide range of products including workwear, linens, and hygiene equipment. Elis serves various sectors such as hospitality, healthcare, industry, and commerce, providing tailored solutions to meet the specific needs of its clients.

How the Company Makes Money

Elis SA generates revenue through a rental and maintenance model. The company primarily earns money by renting textiles and hygiene products to businesses and then providing maintenance services such as laundry, repair, and delivery. This recurring revenue model ensures a steady cash flow, as clients typically enter into long-term contracts for the rental and maintenance services. Additionally, Elis benefits from economies of scale and operational efficiencies gained through its extensive network of service centers and its ability to leverage technology for optimized logistics and service delivery. The company also forms strategic partnerships and acquisitions to expand its market reach and enhance its service offerings, further contributing to its revenue growth.

Elis SA Financial Statement Overview

Summary

Elis SA presents a robust financial profile with strong revenue growth and profitability margins. The balance sheet is solid, although the level of leverage requires careful monitoring. Cash flow generation is healthy, supporting ongoing operations and investments. Overall, the company is well-positioned in its industry, with stable growth and financial resilience.

Income Statement

Elis SA has demonstrated strong revenue growth, with a notable increase of approximately 6.1% from 2023 to 2024. The company has maintained healthy gross and net profit margins, with the gross profit margin at 32.9% and the net profit margin at 7.4% for 2024. The EBIT and EBITDA margins also reflect strong operational performance at 13.0% and 34.7% respectively. These metrics suggest a stable and profitable company, although the gross profit margin has slightly decreased over time.

Balance Sheet

Elis SA's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.19, indicating a moderate level of leverage. The company has shown a solid return on equity of 9.4%, suggesting effective use of shareholders' funds. The equity ratio is at 38.3%, providing a reasonable buffer against liabilities. Overall, the balance sheet is solid, but the leverage level could pose a risk if not managed carefully.

Cash Flow

Elis SA exhibits strong cash flow metrics, with a significant operating cash flow to net income ratio of 4.3, indicating robust cash generation relative to reported earnings. The free cash flow to net income ratio is 1.7, demonstrating effective conversion of earnings into free cash flow. The free cash flow growth rate has also been positive, reinforcing the company's ability to fund its operations and investments efficiently.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.57B	4.31B	3.82B	3.05B	2.81B
	Gross Profit
1.50B	1.42B	1.67B	1.32B	1.17B
	EBIT
596.40M	497.50M	440.20M	278.60M	181.20M
	EBITDA
1.59B	1.26B	1.08B	1.01B	866.10M
	Net Income Common Stockholders
337.80M	262.50M	202.60M	114.30M	2.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
622.10M	665.10M	286.20M	160.00M	137.60M
	Total Assets
9.39B	9.30B	8.62B	8.04B	7.86B
	Total Debt
4.26B	4.23B	3.94B	3.76B	3.87B
	Net Debt
3.64B	3.56B	3.65B	3.60B	3.73B
	Total Liabilities
5.79B	5.83B	5.40B	5.03B	5.05B
	Stockholders Equity
3.60B	3.48B	3.21B	3.01B	2.81B
Cash Flow		Free Cash Flow
564.70M	501.70M	318.50M	313.10M	284.30M
	Operating Cash Flow
1.45B	1.33B	1.02B	887.00M	783.50M
	Investing Cash Flow
-1.06B	-902.40M	-912.50M	-655.40M	-582.10M
	Financing Cash Flow
-423.30M	-46.40M	19.20M	-206.60M	-226.10M

Elis SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.52
• 50DMA: Positive
• 100DMA: Positive
• 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:ELIS, the sentiment is Positive. The current price of 23.52 is above the 20-day moving average (MA) of 23.17, above the 50-day MA of 21.88, and above the 200-day MA of 20.20, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 60.49 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ELIS.

Elis SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEP	80 Outperform	€5.46B	10.41	11.90%	4.61%	23.19%	-14.73%
GLO	79 Outperform	€755.53M	10.34	16.32%	2.71%	15.12%	22.30%
ELIS	79 Outperform	€5.56B	16.42	9.66%	2.02%	6.13%	27.24%
ALCIS	70 Outperform	€73.44M	15.00	7.59%	1.73%	29.64%	52.69%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
SW	65 Neutral	€8.33B	12.31	16.07%	4.65%	6.71%	141.19%