Elis SA (ELIS) AI Stock Analysis

• Market Cap: $5.68B
• Dividend Yield: 1.87%
• Average Volume (3M): 242.95K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.95
• Revenue Growth: 4.83%
• EPS Growth: 52.47%
• Country: FR
• Employees: 56,757
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.61
• Shares Outstanding: 236,664,440
• 10 Day Avg. Volume: 249,200
• 30 Day Avg. Volume: 242,951
• PEG Ratio: 0.50
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 6.16
• 1Y Price Target: $28.90
• Price Target Upside: 20.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: €26.00 ▲(8.24% Upside)

Elis SA's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and profitability. The technical analysis presents a mixed picture, with some short-term weakness but long-term strength. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Elis SA Business Overview & Revenue Model

Company Description

Elis SA provides linen and work wear textile, hygiene, and well-being services in France, the United Kingdom, Ireland, Central Europe, Scandinavia, Eastern Europe, Southern Europe, Latin America, and internationally. The company offers table, kitchen, and hotel linens; workwear and personal protective equipment; floor protection mats, mops, and wiping cloths; industrial wipers; beverage solutions, such as water coolers and accessories, cups and bottles, and coffee machines; and pest control, insect control, or disinfection services. It also provides washroom hygiene services, such as hand washing and drying, lavatories, air fragrancing, toilet hygiene and urinal, and feminine hygiene; and reusable cleanroom garments, footwear, goggles, logistics, and related contamination control solutions, as well as cleaning systems. In addition, the company offers medical waste collection, management, and disposal services, as well as personal laundry services for residential facilities, daycares, and schools. It primarily serves the catering, accommodation, healthcare and welfare, industries, trade and retail, and services sectors, as well as public authorities and administration. Elis SA was founded in 1883 and is headquartered in Saint-Cloud, France.

How the Company Makes Money

Elis generates revenue primarily through the rental and maintenance of its products, which include workwear, linens, and hygiene solutions. The company operates on a subscription-based model, where clients pay a regular fee for the ongoing rental and upkeep of these items. This model ensures a stable and recurring revenue stream. Additionally, Elis benefits from long-term contracts with clients across various sectors, providing predictable cash flows. Significant partnerships with businesses in the healthcare and hospitality industries contribute to its earnings, as these sectors rely heavily on consistent and compliant service delivery. The company's commitment to sustainability and innovation also allows it to differentiate its offerings and capture market share, further enhancing its revenue potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.67B	4.57B	4.31B	3.82B	3.05B	2.81B
Gross Profit	2.15B	1.50B	1.42B	1.67B	1.32B	1.17B
EBITDA	1.64B	1.59B	1.26B	1.08B	1.01B	866.10M
Net Income	371.20M	337.80M	262.50M	202.60M	114.30M	2.70M
Balance Sheet
Total Assets	9.17B	9.39B	9.30B	8.62B	8.04B	7.86B
Cash, Cash Equivalents and Short-Term Investments	234.10M	622.10M	665.10M	286.20M	160.00M	137.60M
Total Debt	4.06B	4.26B	4.23B	3.94B	3.76B	3.87B
Total Liabilities	5.60B	5.79B	5.83B	5.40B	5.03B	5.05B
Stockholders Equity	3.58B	3.60B	3.48B	3.21B	3.01B	2.81B
Cash Flow
Free Cash Flow	516.90M	564.70M	501.70M	318.50M	313.10M	284.30M
Operating Cash Flow	1.37B	1.45B	1.33B	1.02B	887.00M	783.50M
Investing Cash Flow	-985.70M	-1.06B	-902.40M	-912.50M	-655.40M	-582.10M
Financing Cash Flow	-571.50M	-423.30M	-46.40M	19.20M	-206.60M	-226.10M

Elis SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.02
• 50DMA: Negative
• 100DMA: Negative
• 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:ELIS, the sentiment is Positive. The current price of 24.02 is above the 20-day moving average (MA) of 23.62, below the 50-day MA of 24.30, and above the 200-day MA of 21.96, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 48.43 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
SW	75 Outperform	€8.07B	11.92	4.44%	16.12%	6.71%	141.19%
GLO	72 Outperform	€894.09M	10.56	15.96%	2.94%	9.51%	26.07%
TEP	72 Outperform	€3.73B	7.67	11.48%	6.74%	9.08%	-22.55%
ELIS	70 Outperform	$5.68B	15.24	10.25%	1.87%	4.83%	52.47%
ALCIS	70 Outperform	€93.95M	12.86	7.53%	1.46%	23.95%	173.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%