Covivio COV.PA
Covivio is a French diversified REIT that invests in and manages properties in the office, residential, and hotel segments, primarily in Europe. Covivio presents a highly leveraged balance sheet (Net Debt/EBITDA of 9.89) and deteriorating earnings (-25%), which explains its low valuation (P/B 0.61) and high dividend (8.07%). The rising rate environment is an additional drag on its business model.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Covivio is a French diversified REIT that invests in and manages properties in the office, residential, and hotel segments, primarily in Europe. Covivio presents a highly leveraged balance sheet (Net Debt/EBITDA of 9.89) and deteriorating earnings (-25%), which explains its low valuation (P/B 0.61) and high dividend (8.07%). The rising rate environment is an additional drag on its business model.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.6 |
| Quality / Moat | 4.1 |
| Valuation | 4.6 |
| Growth | 3.4 |
| Dividend | 5.7 |
| Momentum | 4.0 |
| Risk & Context | 3.5 |
OVERALL SCORE: 4.3/10
Context and risks
French REIT with Net Debt/EBITDA of 9.89, highly leveraged, and trading at the 3rd percentile of its 52-week range. The sharp rise in 10-year rates (5.17%) makes its financing more expensive and pressures the value of its assets, a direct risk to its business model.
News considered in the analysis
- Covivio (ENXTPA:COV) Could Be 24% Undervalued On Recent Share Price Weakness — Análisis de valoración de Simply Wall St., sin información nueva sobre el negocio; es una opinión basada en datos ya públicos.
- Covivio takes over Crowne Plaza Brussels Airport hotel management — La toma de gestión de un hotel en Bruselas es una operación menor que refuerza su segmento hotelero, pero no es material para el conjunto del grupo.
Verdict: Hold, with caution. The high dividend yield does not compensate for the risk of a highly indebted balance sheet in a rising rate environment.
Main risk: The high leverage (Net Debt/EBITDA of 9.89) in a rising interest rate environment, which makes financing more expensive and pressures the value of its real estate assets.
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