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1. Company Snapshot

1.a. Company Description

Elior Group SA offers contract catering and support services in France, the United States, the United Kingdom, Spain, Italy, India, and internationally.The company provides contract catering services to business, education, and health and welfare sectors under the Elior brand.It also offers a range of value-added services under the Elior Services brand, such as cleaning and hygiene services for hotels, industrial sites, shops and retail outlets, and food industries; biological cleaning and hospitality services in the healthcare sector; and facility management and support services, including reception, internal mail handling, minor repairs and maintenance, and gardening for corporate clients.


The company operates approximately 22,700 restaurants and points of sale.Elior Group SA was founded in 1991 and is headquartered in Paris, France.

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1.b. Last Insights on ELIOR

Elior Group SA's recent performance has been positively driven by several factors. The company secured a contract with Dundee United to provide catering services, effective July 2025, ahead of summer events and the football season. Additionally, Elior's monthly statements on outstanding shares and voting rights, such as those released on October 3, September 1, and August 1, 2025, indicate a stable shareholder base. The company's strategic positioning in the UK market, where Compass Group plans to boost its India headcount, may also contribute to its growth prospects.

1.c. Company Highlights

2. Elior Group's Fiscal Year 2024-2025 Earnings: A Strong Recovery

Elior Group reported a revenue of EUR 6.15 billion for the fiscal year 2024-2025, with an organic growth of 1.3%. The adjusted EBITDA exceeded EUR 200 million, and the profit before tax was EUR 65 million, compared to a loss of EUR 5 million in the previous year. The earnings per share (EPS) came in at EUR 0.02, in line with estimates. The company's financial performance was driven by contract catering, which saw an organic growth of 2%, supported by strong commercial development in Spain, pricing discipline in the UK, and successful commercial activity in the US.

Publication Date: Nov -26

📋 Highlights
  • Adjusted EBITDA Growth: Surpassed EUR 200 million, with a profit before tax of EUR 65 million, reversing last year's EUR 5 million loss.
  • Revenue Performance: Reached EUR 6.15 billion, driven by 2% organic growth in contract catering despite a 0.3% currency impact.
  • Free Cash Flow & Leverage: Generated EUR 228 million in free cash flow, reducing leverage to 3.3x and maintaining EUR 30 million liquidity.
  • CSR Milestones: Achieved 7% greenhouse gas reduction and 42% food waste cut, with 38% female leadership representation.
  • Future Dividend & Growth: Proposed EUR 0.04/share dividend pending approval, with 2025-2026 targeting 3-4% organic growth and EBITDA margin of 3.5-3.7%.

Cash Flow and Leverage

The company's free cash flow for the 2024-2025 fiscal year amounted to EUR 228 million, representing 2/3 of the EBITDA. The leverage ratio was reduced by 0.5 points to 3.3x, thanks to the sustained free cash flow. The company's liquidity remained solid, with a positive net available liquidity of EUR 30 million. The securitization program contributed EUR 89 million to the company's cash flow.

Outlook and Guidance

Elior Group expects to continue its growth momentum in the fiscal year 2025-2026, with an organic growth of between 3% and 4%. The adjusted EBITDA margin is expected to increase by 20 to 40 basis points, reaching 3.5% to 3.7%, similar to pre-COVID levels. The company aims to further decrease its leverage ratio to around 3x by the end of September 2026. The payment of dividends is expected to continue, trending towards around 30% of net result group share, with a proposed dividend of EUR 0.04 per share for the fiscal year 2024-2025.

Valuation

Using the current valuation metrics, Elior Group's P/E Ratio stands at 665.74, indicating a potentially overvalued stock. However, the EV/EBITDA ratio is 5.99, which is relatively reasonable. The Free Cash Flow Yield is 20.12%, suggesting a strong cash generation capability. The Net Debt / EBITDA ratio is 3.74, slightly higher than the company's target leverage ratio. Overall, the valuation metrics suggest that the stock may be fully valued, but the company's strong cash flow generation and improving profitability may justify the current valuation.

3. NewsRoom

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Elior Group: Outstanding Shares and Voting Rights – Monthly Statement

Dec -01

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Elior Group SA (ELROF) Full Year 2025 Earnings Call Highlights: A Turnaround in Profitability ...

Nov -22

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Elior Group SA (ELROF) Full Year 2025 Earnings Call Highlights: A Turnaround in Profitability ...

Nov -21

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Elior Delivers an Outstanding Performance for Fiscal 2024-2025, Returning to Profit and Announcing a Proposed Dividend Payment

Nov -19

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Elior Group: Outstanding Shares and Voting Rights – Monthly Statement

Nov -03

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ELIOR Group: Outstanding Shares and Voting Rights – Monthly Statement

Oct -03

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Elior Group: Outstanding Shares and Voting Rights – Monthly Statement

Sep -01

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UK's Compass plans to boost India headcount as GCCs drive growth

Aug -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.70%)

6. Segments

Restoration Collective

Expected Growth: 2.5%

Restoration Collective's 2.5% growth is driven by increasing demand for experiential dining, strategic partnerships, and expansion into new markets. Elior Group SA's expertise in contract catering and hospitality supports the brand's growth. Additionally, the collective's focus on unique culinary experiences, sustainability, and digital engagement attracts a loyal customer base, contributing to its steady growth.

Multiservices

Expected Growth: 3.5%

Elior Group SA's multiservices segment growth of 3.5% is driven by increasing demand for outsourced services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization, innovation, and sustainability initiatives has enhanced its competitiveness, leading to market share gains and revenue growth.

Corporate and Others

Expected Growth: 2.8%

Elior Group SA's Corporate and Others segment growth of 2.8% is driven by increasing demand for catering services, expansion into new markets, and strategic partnerships. Additionally, cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Catering Services

Elior Group SA provides catering services to various industries such as education, healthcare, and business and industry.

Concession Catering

Elior Group SA offers concession catering services to sports and leisure venues, museums, and other public attractions.

Restaurants and Cafes

Elior Group SA operates a chain of restaurants and cafes, offering a range of dining options to customers.

Event Catering

Elior Group SA provides event catering services for corporate events, weddings, and other special occasions.

Facility Management

Elior Group SA offers facility management services, including cleaning, maintenance, and security services.

Support Services

Elior Group SA provides support services such as reception, mailroom, and logistics services.

8. Elior Group SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Elior Group SA is moderate due to the presence of alternative food service providers and catering companies.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market and the lack of concentration among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.82%
Debt Cost 7.26%
Equity Weight 37.18%
Equity Cost 15.88%
WACC 10.47%
Leverage 168.95%

11. Quality Control: Elior Group SA passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Young's

A-Score: 4.6/10

Value: 5.6

Growth: 4.0

Quality: 3.1

Yield: 3.8

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
SSP Group

A-Score: 4.5/10

Value: 7.3

Growth: 5.6

Quality: 1.7

Yield: 1.9

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Wetherspoon

A-Score: 4.4/10

Value: 7.4

Growth: 5.1

Quality: 2.7

Yield: 1.2

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Marstons

A-Score: 4.3/10

Value: 9.1

Growth: 5.7

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
HelloFresh

A-Score: 3.2/10

Value: 8.9

Growth: 5.3

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Elior

A-Score: 2.8/10

Value: 7.1

Growth: 3.2

Quality: 1.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.71$

Current Price

2.71$

Potential

-0.00%

Expected Cash-Flows