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ELIS

Analysis before buying or selling Elis shares

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Do you want to invest in Elis stock and add it to your stock portfolio but don't know how to make a relevant and efficient analysis of its price? We are going to help you with this article entirely dedicated to this stock. In this text, you will indeed be able to discover some useful information about this stock and its quotation on the Stock Exchange but also information about this company with its detailed presentation including its main activities, a presentation of its main competitor on the market but also its strong and weak points. We will finish by explaining how you can set up a quality fundamental analysis on this stock with the different elements to follow in the news and the important publications to study.

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Information on Elis shares
ISIN code: FR0012435121
Ticker: EPA: ELIS
Index or market: Euronext Paris
 

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Elements to consider before selling or buying Elis shares

Analysis N°1

From a strategic point of view, we will of course be watching the consolidation of this group's positions with the maintenance of its leadership in France, Switzerland, Brazil, Chile and Portugal and its position as number 2 in Spain. The group must do everything possible to maintain this position and its market share in the face of increasingly aggressive competition.

Analysis N°2

We will also keep an eye on the operations set up by the Elis group in order to develop and offer new services to its customers with new and practical products.

Analysis N°3

Still from a strategic point of view, the group is currently developing its platform in Latin America and improving its operational excellence. We will therefore obviously also follow this data.

Analysis N°4

The Elis group has also been trying for some years to diversify its activities by investing in the development of a pest control and disinfection offer through partnerships with private home rental companies. This type of alliance and strategic contract should therefore be the subject of your attention and analysis.

Analysis N°5

The Elis group also often buys out subsidiaries, as was recently the case with Albia, Chile's leading company in this sector. This type of operation is of course important and is likely to boost the share price rapidly.

Analysis N°6

The progress of the group's plans to restructure the network of laundries in Switzerland and the economic impact of the investments made will also be monitored.

Analysis N°7

It goes without saying that you will also have to closely follow the various financial and economic publications of this group, in particular by monitoring on an annual and quarterly basis the evolution of the turnover, the margin, which should remain down by only 30 basis points for the French sector, and an improvement in this margin in Europe and Latin America.

Analysis N°8

Finally, as mentioned above, we will monitor the evolution of the shareholding of this company, whose control of the capital changes regularly. This can of course have a direct impact on the share price.

Analysis before buying or selling Elis shares
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General presentation of Elis

Let's start this article dedicated to Elis shares with a presentation of this company and its main activities. Thanks to this information, you will better understand the challenges of this group and its growth prospects for the months and years to come.

The Elis Group is a European company specialising in the provision of services to businesses and more specifically in the rental and maintenance of flat linen, work clothes and hygiene and well-being equipment. More precisely, it is one of the major leaders in this sector in Europe.

The group thus offers its services to numerous clients with more than 400,000 companies in its portfolio. The sectors targeted are also varied, mainly the hotel and restaurant sector, but also the health sector with public hospitals, private clinics and retirement homes, the industrial sector, the commercial sector with large and medium-sized stores and retail outlets, as well as the service sector with cleaning companies, the liberal professions and public administrations.

Elis has a main business in France but is also present in more than 24 other European countries. It is also active internationally, with markets in Brazil, Colombia and Chile. The Elis Group currently operates more than 440 production and distribution centres worldwide. It employs more than 45,000 people.

The major competitors of Elis

As we quickly mentioned in the introduction, the Elis group is one of the leaders in its sector of activity in Europe. More precisely, it is one of the two groups that share the largest share of this market with its main competitor, which we propose to discover here in a little more detail.

Initial

Elis' main competitor is a French company, the Initial group, formerly known as Initial BTB. This company is specialized in business services and more specifically also in the rental and maintenance of textile products such as work clothes, table linen for bars and restaurants but also household linen for hotels, floor mats and sanitary hygiene. Initial is also a subsidiary of the Rentokil Initial group, which is the world leader in business services with a strong international presence. This British group is listed on the London Stock Exchange and is also included in the calculation of the British FTSE 250 stock market index. It specialises in hygiene services for companies and public authorities. The company is active in more than 40 countries, mainly in Europe. Initial currently employs over 50,000 people worldwide, including 2,000 in France. Among the businesses and services offered by Initial are professional clothing, PPE or Personal Protective Equipment, professional linen for health establishments, restaurants, hotels and companies, sanitary hygiene services and products, water cooler hire, anti-fouling mats and work gloves.

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Positive factors for Elis shares
The factors in favour of a rise in the Elis share price:
  • First of all, as we have seen above, the group is one of the major leaders in its sector in Europe in the field of rental and maintenance of textile and hygiene articles. This gives it a high degree of popularity in the market, but also a high degree of expertise and negotiation capacity with its suppliers and customers.
  • We also appreciate the good strategic distribution of the activities of this company since this activity concerns for 47% the flat linen, for 31% the working clothes and for 22% the products of hygiene and well-being. The distribution of these activities is also very good as regards the targeted customers with 34% for the hotel and restaurant sector, 28% for the trade and services sector, 22% for the health sector and 20% for the industry sector. This good distribution allows it to better protect itself against risks linked to a single product category or a single target sector.
  • Geographically, the Elis Group also benefits from a good distribution in various target countries. Indeed, its positions are particularly strong in Europe, with 70% of its business conducted in France, 13% in Northern Europe, 10% in Southern Europe and 7% in the rest of the world, mainly in Latin America.
  • Still among the strong points of this company, we find its particularly reliable economic model based on the rental of articles rather than on the sale of the latter. Still from the point of view of the group's strategy, we also appreciate the dense network of territories and the strategy based on external growth mainly in Europe and Latin America.
  • The stock market performance of this stock is also an advantage for this group. Elis shares were included in the SBF 120 index only one year after its IPO in January 2015.
  • Finally, we also appreciate the particularly healthy financial situation of this company, which has reassured investors and shareholders for many years.
Negative factors for Elis shares
The factors in favour of a drop in the Elis share price:
  • First of all, it should be noted that the Elis Group is experiencing some difficulties in certain markets, which are showing slower growth or even a decline in its activities. This is the case in France, but also in Germany, Switzerland and Brazil.
  • The decline in hotel occupancy in France has also had a negative impact on the group's activities and overall profitability, but also on its growth prospects. It should be remembered that the vast majority of Elis' business is in the French market, and that the hotel and restaurant sector is its target sector par excellence.
  • Still on the subject of the weak points of this company, and also with regard to the French market, we have seen strong competition in terms of price from smaller players over the last few years, but also from its main adversary, which we presented to you above. This increased competition and its influence on prices naturally leads to a more or less significant decline in the operating margin of this group.
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 or a solicitation to buy or sell an asset.
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