Elis combines recurring, defensible rental-services cash flows and European route-density leadership with a discounted 6.27x EV/EBITDA valuation and a probability-weighted five-year target of €40.20.
Overview
Elis is a France-headquartered multiservice provider renting, laundering and maintaining textiles and hygiene assets for healthcare, hospitality, industry and commercial customers. Its circular model serves approximately 400,000 enterprise clients across 30 countries through more than 460 plants and distribution centers; three-to-five-year contracts and embedded logistics underpin recurring revenue and switching costs. In FY2025, revenue reached €4,796.8 million (+4.9%), adjusted EBITDA €1,700.1 million at a 35.4% margin, and free cash flow a record €358.6 million. H1 2026 revenue rose 4.9% to €2,457.1 million, with a stable 34.7% EBITDA margin, despite weak European industrial conditions and Mexican healthcare tender pressure. Management reconfirmed 2026 guidance: organic growth slightly below FY2025’s 3.8%, slight margin expansion, mid-single-digit FCF growth and high-single-digit diluted headline EPS growth. **The central investment case is a durable route-density moat with recurring, inflation-indexed contracts and scope for cross-selling and consolidation.** At about €21.32, the shares trade at 9.97x forward P/E and 6.27x EV/EBITDA, versus 12.5x peer EV/EBITDA. The report’s probability-weighted five-year target is €40.20; near-term catalysts include H1 contract onboarding and completion of the €500 million buyback.