Orpea SA (EMEIS) AI Stock Analysis

• Market Cap: €2.20B
• Dividend Yield: N/A
• Average Volume (3M): 485.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 4.21
• Revenue Growth: 6.30%
• EPS Growth: -100.37%
• Country: FR
• Employees: 51,071
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.85
• Shares Outstanding: 161,440,050
• 10 Day Avg. Volume: 432,757
• 30 Day Avg. Volume: 485,783
• PEG Ratio: 0.02
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.90
• 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: €9.00
• Price Target Upside: -32.23% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: €14.00 ▲(5.42% Upside)

Orpea SA's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and high leverage. While technical indicators show some positive trends, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some optimism with improvements in revenue and debt reduction, but significant financial challenges persist.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective pricing strategies, enhancing long-term business sustainability.

EBITDA Growth

Improved EBITDA and margins demonstrate operational efficiency, supporting profitability and financial health over the medium term.

Reduced Net Debt

Reduction in net debt enhances financial stability and flexibility, allowing for strategic investments and growth initiatives.

Negative Factors

Negative Net Income

Persistent negative net income indicates ongoing profitability challenges, which can hinder long-term financial sustainability.

High Leverage Ratio

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to weather economic downturns.

Financial Distress

Negative equity indicates financial instability, posing risks to long-term viability and ability to secure favorable financing.

Orpea SA Business Overview & Revenue Model

Company Description

Orpea SA is a leading European provider of long-term care services, specializing in the management of nursing homes, rehabilitation centers, and assisted living facilities. The company operates across several countries, offering a range of services designed to support elderly individuals and those requiring medical assistance. Orpea's core offerings include residential care, post-acute care, and home care services, focusing on enhancing the quality of life for its residents through comprehensive healthcare and support.

How the Company Makes Money

Orpea SA primarily generates revenue through the provision of care services in its nursing homes and rehabilitation facilities. Key revenue streams include government reimbursements, private payments from residents, and health insurance reimbursements. The company benefits from partnerships with local governments and health authorities, which provide funding and subsidies for care services. Additionally, Orpea may earn income from ancillary services such as physiotherapy, occupational therapy, and other specialized medical services offered to residents. The company's strategic expansion into new markets and continuous investment in facility enhancements also contribute to its overall earnings.

Orpea SA Financial Statement Overview

Summary

Orpea SA's financial performance is concerning due to negative EBIT and net income, indicating operational challenges. The high debt-to-equity ratio and declining stockholder equity highlight financial distress. Despite positive operating cash flow, the company's financial health is undermined by persistent losses and high leverage.

Income Statement

Orpea SA's revenue has shown a steady growth trend with a notable increase from 2020 to 2024. However, profitability metrics are concerning. Both EBIT and Net Income are negative in 2024, indicating operational challenges and lack of profitability. The gross profit margin has improved significantly from previous years, suggesting some operational efficiency gains, but the overall financial health is undermined by persistent losses.

Balance Sheet

The company has a high debt-to-equity ratio due to substantial total debt which has remained high over the years. While the equity ratio is low, indicating high leverage, the company's stockholder equity has been declining, posing a risk to financial stability. Negative stockholders' equity in recent years highlights financial distress.

Cash Flow

Orpea SA has managed to maintain positive operating cash flow, which is a positive sign of cash-generating capability. The free cash flow has shown growth, but the free cash flow to net income ratio indicates challenges, as net income remains negative. The operating cash flow to net income ratio is strong due to the negative net income, which reflects operational cash flow resilience despite profitability issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.64B	5.20B	4.68B	4.30B	3.92B
Gross Profit	4.51B	655.93M	713.73M	922.68M	963.25M
EBITDA	731.55M	2.80B	-3.45B	646.07M	637.64M
Net Income	-412.06M	1.35B	-4.03B	65.19M	160.05M
Balance Sheet
Total Assets	13.41B	13.91B	14.49B	17.07B	16.97B
Cash, Cash Equivalents and Short-Term Investments	518.72M	692.95M	902.99M	957.70M	894.13M
Total Debt	8.86B	9.16B	13.38B	12.25B	10.77B
Total Liabilities	11.69B	12.02B	16.00B	14.74B	13.48B
Stockholders Equity	1.72B	1.89B	-1.50B	2.32B	3.50B
Cash Flow
Free Cash Flow	328.61M	216.90M	244.74M	331.85M	283.29M
Operating Cash Flow	472.05M	366.14M	409.73M	753.75M	777.73M
Investing Cash Flow	-140.43M	-318.17M	-657.49M	-1.41B	-1.01B
Financing Cash Flow	-458.08M	-259.44M	151.81M	718.30M	285.80M

Orpea SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.28
• 50DMA: Negative
• 100DMA: Positive
• 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:EMEIS, the sentiment is Positive. The current price of 13.28 is below the 20-day moving average (MA) of 13.38, below the 50-day MA of 13.94, and above the 200-day MA of 12.02, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EMEIS.

Orpea SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNA	61 Neutral	€256.34M	12.13	6.64%	2.78%	13.31%	-13.07%
CLARI	58 Neutral	€1.25B	-27.06	-1.70%	―	1.98%	85.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EMEIS	48 Neutral	€2.20B	-7.50	-16.66%	―	6.30%	-100.37%
GDS	48 Neutral	€999.88M	―	-4.36%	―	4.70%	-0.37%

Orpea SA Corporate Events

Orpea SA Earnings Call: Growth Amidst Challenges

The recent earnings call for Orpea SA painted a mixed picture of the company’s financial health, with notable achievements in revenue growth and occupancy rates, alongside challenges such as negative net income and a high leverage ratio. The call highlighted the company’s strategic efforts to reduce net debt and improve cash flow, despite facing difficulties in the Irish market.