Constance Hotels Services Ltd
Constance Hotels Services Ltd operates in the hospitality sector, generating revenue through hotel services and leisure activities.
Business. Constance Hotels Services Ltd operates in the hospitality sector, generating revenue through hotel services and leisure activities.
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
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Synthesis
Constance Hotels Services Ltd operates in the hospitality sector, generating revenue through hotel services and leisure activities.
Constance Hotels Services Ltd maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.45. The company holds total assets of 17.9 billion MUR against total liabilities of 12.4 billion MUR, resulting in total equity of 5.5 billion MUR. Long-term debt stands at 8.0 billion MUR, creating a negative net cash position after subtracting total debt. Liquidity is constrained, evidenced by a current ratio of 0.62, which indicates that current liabilities exceed current assets. Operating cash flow is positive at 1.1 billion MUR, and free cash flow is also positive at 1.2 billion MUR, providing some operational liquidity despite the balance sheet pressure.
Profitability metrics present a conflicting picture between income statement performance and return ratios. The company reports operating income of 1.1 billion MUR and net income of 400 million MUR on revenue of 6.5 billion MUR. However, the computed return on equity is -0.13 and return on assets is -0.04, suggesting that the valuation snapshot may reflect different accounting treatments or period mismatches compared to the financial snapshot income figures. Without cohort median data, direct comparison to industry peers is not possible, but the negative returns signal potential inefficiencies in capital utilization or one-time charges impacting the equity base.
- High leverage with a debt-to-equity ratio of 1.45 and negative net cash position.
- Liquidity pressure indicated by a current ratio of 0.62.
- Positive operating and free cash flow of 1.1 billion MUR and 1.2 billion MUR respectively.
- Conflicting profitability signals with positive net income but negative ROE and ROA.
- Low dilution risk with stable share count.
- Lack of segment and historical data limits comprehensive trend analysis.
Bull / Bear case
Generated · model-assistedFree cash flow surged to MUR 1.15 billion in FY0, indicating strong cash generation ability during that specific fiscal period.
Long-term debt decreased by MUR 971.7 million from FY-1 to FY0, showing a historical trend of deleveraging in earlier periods.
Operating income remained robust at MUR 1.08 billion in FY-1, suggesting underlying operational profitability before recent margin compression.
The company maintains a book value of MUR 5.55 billion, providing a tangible asset base for potential recovery scenarios.
The company faces high credit risk and medium liquidity risk, indicating substantial financial stability concerns for investors.
Debt-to-equity ratio stands at 1.45, significantly higher than the cohort median of 0.4, indicating elevated leverage risk.
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- Net cash is negative after subtracting total debt.
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- Debt To Equity(short_term_debt + long_term_debt) / total_equity
- Cash Conversion Ratiooperating_cash_flow / net_income
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Return On Assetsnet_income / total_assets
- Return On Equitynet_income / total_equity
- Constance Hotels Services Ltd Market data — financials · 2026-07-11