Elis: publication well received

(Boursier.com) — Elis rises 1.6% to 16.4 euros the day after an annual point marked by the announcement of revenues up 8.6% in 2021 to 3.048 billion euros (+7.4% e organic) . The positive momentum continued in the 4th quarter, despite the appearance of the Omicron variant. Elis also recorded organic growth of +17.1% over the period.

The 2021 free cash flow (after payment of rents) should be in the upper part of the range already communicated, i.e. between 200 and 230 million euros. Debt leverage would be 3.3x as of December 31, 2021, then well below 3x as of December 31, 2022. On the other hand, management notes that the high inflation observed in December, particularly for the price of gas, slightly penalizes profitability with an EBITDA margin which should stand at 34.5% against more than 34.5% expected so far.

Midcap Partners reiterates its ‘buy’ advice and its target of 24.1 euros. At less than 14 times Ebit 2022, the stock is still trading at a discount of more than 20% against its peers, unjustified on the broker, given the group’s visibility and resilience in a context that is nevertheless complicated.

Based on a stock market comparison and historical references, Oddo BHF reiterates its ‘outperform’ opinion and its target of 19.4 euros. From the publication of the annual results on March 9, the broker is mainly awaiting comments on the price increases intended to preserve profitability in 2022. Given the deleveraging, Elis should be able to pay a dividend (0.35 euros estimated at title of 2021) and potentially “bolt-on” external growth operations (mobilizable envelope of approximately 100 ME).