AUTOGRILL

Analysis of Autogrill share price

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Elements that can influence the price of this asset:

Analysis N°1

The Autogrill group's activities are naturally influenced by the number of travellers using the motorways, stations or airports where it operates. It will therefore be necessary to keep a close eye on the figures for the number of passengers in these areas to determine the group's growth potential.

Analysis N°2

Autogrill's opening of new catering outlets and, in particular, its gradual establishment in other countries will be interesting entry points into the market.

Analysis N°3

It goes without saying that you should also keep a close eye on the competition in this sector by following the evolution of the market shares of each of these players or by following their important publications.

Analysis N°4

You should keep an eye on Autogrill's earnings releases, whether they are annual or quarterly.

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General presentation of Autogrill

Autogrill is an Italian group that is also the current world leader in travel food services. It owns and operates more than 4,300 restaurants and cafeterias around the world. These restaurants are mainly located in airports and motorway service areas, but also to a small extent in railway stations.

Autogrill generates most of its turnover in Italy, but also in North America and Europe.

The Autogrill share price is currently quoted on the Mercato Telematico Azionario of the Borsa Italiana and is included in the calculation of the FTSE MIB stock market index.

Analysis of Autogrill share price
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The factors in favour of a rise in the Autogrill share price:

Are you interested in Autogrill's share price but hesitating to buy or take a position on the stock? In this case, it is necessary to make sure that you have all the necessary knowledge about this company. We will now tell you more about the advantages and disadvantages of this company, in other words, the strengths and weaknesses of this company that will undoubtedly influence its future growth. These elements will allow you to understand how investors perceive this stock but also and especially how it can face the challenges that the future holds or the threats and seize possible opportunities.

Let's start this analysis of the strengths and weaknesses of the Autogrill group with a summary of the various advantages that this group has at present and that allow it to make a place for itself in the face of competition in its sector of activity. These elements can also, under the right conditions, have a positive influence on the share price:

  • First of all, the first strong point of this company is undoubtedly its advantageous positioning on the market and in its sector of activity. The Autogrill group is currently number 4 in the world in the field of institutional catering, which is its historic business and which still generates more than three quarters of its income. But that's not all! In the concession segment, Autogrill is also well positioned in third place worldwide.
  • Another positive point for the group concerns the overall trend in the outsourced catering market, which has been on the rise for a number of years, with a peak in 2018. The same applies to the concessions segment, which is growing slightly less strongly but sustainably. These two increases in demand are mainly due to airport traffic, which generates the bulk of this market.
  • Another of Autogrill's undeniable advantages is its strategy, and in particular the strategy of setting up well thought-out strategic partnerships with other companies. These include partnerships with internationally renowned brands such as Costa Coffee, Pau, Starbuck's, Burger King in Spain and the United States, Monop Daily, Illy Café, Lexington Catering in the United Kingdom, Aeras in Spain and the United States and many others. Thanks to these large-scale partnerships, the Autogrill group now achieves more than half of its turnover internationally, which is another of its strengths.
  • In the past, the fact that the Autogrill Group managed to get its hands on the control of the Areas concessionaire was also the starting point for a nice growth and offered it some longer-term prospects. Indeed, by acquiring this company at a very low price, the group was able to benefit from significant synergies as early as spring 2016 with Autogrill's French station business and that of the English company Waterfal.
  • Finally, investors have also greatly appreciated the recent improvement in the group's financial situation. This feat has been welcomed by the rating agencies, which have placed their trust in the company, and shareholders have thus been able to benefit from an attractive payout rate on the company's dividend for several years.
The factors in favour of a drop in the Autogrill share price:

As you can see, the Autogrill group already has a number of strengths that can help it achieve growth in the future. But it is obvious that these elements should not be analyzed alone since this company also has its weak points which we propose to discover now:

  • Firstly, the group is still too present on the French market compared to the rest of the world. However, this market shows a slower progression than in other countries, which represents a real risk for the group. It should be noted that almost half of the Autogrill group's revenues still come from the French market. It goes without saying that in the event of a major recession in this market, for one reason or another, this could have disastrous consequences for the company and its development possibilities.
  • Another negative point about Autogrill stock is that this company operates in precisely one of the business sectors that has been most affected by the Covid-19 crisis and the global pandemic. It is not yet clear whether this company will be able to recover from this failure. Indeed, let us recall that Autogrill's activities are very strongly dependent on the tourism sector, which was the first victim of this unprecedented crisis. The group's concessions in stations and airports in particular have lost a large part of their turnover during the year 2020 and will have difficulty in recovering.
  • Autogrill's stock has also been considered overvalued by analysts specializing in this market, which has led to stronger and more volatile selling trends than for other stocks, at the slightest sign of weakness or event raising doubts among investors. It is therefore necessary to systematically reassess this stock and this company before taking any position on it.
  • Finally, another weakness of this group is that its activities are still very strongly exposed to the European markets with little tendency to internationalise outside these borders.

As you can see, the Autogrill group has both undeniable strengths and weaknesses and you should compare these elements with interest and then perform a complete fundamental analysis taking into account other elements in your possession including more recent events and factors.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who is the main shareholder of the Autogrill Group?

Currently, it is still the Edizione family, through the company Edizione Holding, which is the main shareholder of this company since it holds more than 57.1% of its capital. Among the major shareholders that you should know before trading this stock, we also find the company Generali with 5.1% of the shares. The rest of the capital of this company is public, i.e. 37.8% of the shares in free circulation on the market.

What is the proposed yield or dividend on Autogrill stock?

The current yield per share on Autogrill stock is currently 4.14% annualized. This is the dividend paid to the shareholders of this group. Regarding this stock and its performance, we note that Autogrill stock shows an annual variation of -44.77% as of July 2020 and a variation of -40.97% over the last five years.

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