Price Target Changed • May 21
Price target decreased by 11% to ر.س18.57 Down from ر.س20.94, the current price target is an average from 3 analysts. New target price is 24% above last closing price of ر.س15.02. Stock is down 35% over the past year. The company is forecast to post a net loss per share of ر.س0.31 next year compared to a net loss per share of ر.س1.20 last year. Reported Earnings • May 07
First quarter 2026 earnings released: ر.س0.06 loss per share (vs ر.س0.29 loss in 1Q 2025) First quarter 2026 results: ر.س0.06 loss per share (improved from ر.س0.29 loss in 1Q 2025). Revenue: ر.س250.1m (down 6.9% from 1Q 2025). Net loss: ر.س3.91m (loss narrowed 79% from 1Q 2025). Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Apr 09
Herfy Food Services Company, Annual General Meeting, May 03, 2026 Herfy Food Services Company, Annual General Meeting, May 03, 2026, at 20:30 Arab Standard Time. Location: riyadh Saudi Arabia New Risk • Mar 10
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 53% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Major Estimate Revision • Mar 10
Consensus EPS estimates fall by 136% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ر.س1.16b to ر.س1.07b. Losses expected to increase from ر.س0.28 per share to ر.س0.66. Hospitality industry in Saudi Arabia expected to see average net income growth of 23% next year. Consensus price target of ر.س20.43 unchanged from last update. Share price rose 6.5% to ر.س13.98 over the past week. Reported Earnings • Mar 06
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: ر.س1.20 loss per share (improved from ر.س1.80 loss in FY 2024). Revenue: ر.س1.08b (down 3.8% from FY 2024). Net loss: ر.س77.5m (loss narrowed 34% from FY 2024). Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) exceeded analyst estimates by 3.2%. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 36 percentage points per year, which is a significant difference in performance. New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Major Estimate Revision • Jan 17
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ر.س1.13b to ر.س1.10b. Losses expected to increase from ر.س0.70 per share to ر.س0.86. Hospitality industry in Saudi Arabia expected to see average net income growth of 23% next year. Consensus price target down from ر.س20.94 to ر.س19.54. Share price rose 15% to ر.س16.76 over the past week. Price Target Changed • Jan 16
Price target decreased by 11% to ر.س19.54 Down from ر.س21.88, the current price target is an average from 5 analysts. New target price is 17% above last closing price of ر.س16.76. Stock is down 36% over the past year. The company is forecast to post a net loss per share of ر.س0.86 next year compared to a net loss per share of ر.س1.80 last year. Buy Or Sell Opportunity • Nov 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to ر.س19.27. The fair value is estimated to be ر.س24.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 7.9% in a year. Earnings are forecast to grow by 98% in the next year. Buy Or Sell Opportunity • Sep 04
Now 22% overvalued Over the last 90 days, the stock has fallen 1.4% to ر.س20.93. The fair value is estimated to be ر.س17.20, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.0% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 8.0% in a year. Earnings are forecast to grow by 90% in the next year. Major Estimate Revision • Aug 26
Consensus EPS estimates upgraded to ر.س0.36 loss, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from ر.س1.21b to ر.س1.15b. 2025 losses expected to reduce from -ر.س0.638 to -ر.س0.357 per share. Hospitality industry in Saudi Arabia expected to see average net income growth of 24% next year. Consensus price target up from ر.س21.02 to ر.س21.88. Share price fell 2.4% to ر.س22.94 over the past week. Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: ر.س0.014 (vs ر.س0.37 loss in 2Q 2024) Second quarter 2025 results: EPS: ر.س0.014 (up from ر.س0.37 loss in 2Q 2024). Revenue: ر.س284.6m (down 5.5% from 2Q 2024). Net income: ر.س899.9k (up ر.س24.6m from 2Q 2024). Profit margin: 0.3% (up from net loss in 2Q 2024). The move to profitability was driven by lower expenses. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. New Risk • Jul 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Major Estimate Revision • May 30
Consensus EPS estimates fall by 20% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -ر.س0.52 to -ر.س0.625 per share. Revenue forecast unchanged at ر.س1.15b. Hospitality industry in Saudi Arabia expected to see average net income growth of 25% next year. Consensus price target down from ر.س21.60 to ر.س20.92. Share price fell 5.4% to ر.س21.70 over the past week. Major Estimate Revision • May 18
Consensus EPS estimates fall by 81% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ر.س1.24b to ر.س1.16b. Losses expected to increase from ر.س0.29 per share to ر.س0.52. Hospitality industry in Saudi Arabia expected to see average net income growth of 20% next year. Consensus price target broadly unchanged at ر.س21.60. Share price was steady at ر.س24.54 over the past week. New Risk • May 08
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Reported Earnings • May 07
First quarter 2025 earnings released: ر.س0.29 loss per share (vs ر.س0.007 profit in 1Q 2024) First quarter 2025 results: ر.س0.29 loss per share (down from ر.س0.007 profit in 1Q 2024). Revenue: ر.س268.6m (down 7.1% from 1Q 2024). Net loss: ر.س18.6m (down ر.س19.0m from profit in 1Q 2024). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Apr 23
Now 21% overvalued Over the last 90 days, the stock has fallen 2.3% to ر.س25.20. The fair value is estimated to be ر.س20.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.2% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 7.2% in a year. Earnings are forecast to grow by 83% in the next year. Announcement • Mar 27
Herfy Food Services Company, Annual General Meeting, Apr 22, 2025 Herfy Food Services Company, Annual General Meeting, Apr 22, 2025, at 19:00 Arab Standard Time. Location: riyadh Saudi Arabia Major Estimate Revision • Mar 10
Consensus EPS estimates increase by 39% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ر.س0.247 to ر.س0.344. Revenue forecast unchanged at ر.س1.24b. Net income forecast to grow 78% next year vs 27% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target of ر.س22.90 unchanged from last update. Share price fell 14% to ر.س20.68 over the past week. Reported Earnings • Mar 06
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: ر.س1.80 loss per share (down from ر.س0.13 profit in FY 2023). Revenue: ر.س1.12b (down 4.2% from FY 2023). Net loss: ر.س116.5m (down ر.س124.9m from profit in FY 2023). Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 84%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Nov 13
Consensus EPS estimates have been downgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ر.س1.19b to ر.س1.16b. Now expected to report a loss of ر.س0.82 per share instead of ر.س0.0017 per share profit previously forecast. Hospitality industry in Saudi Arabia expected to see average net income growth of 41% next year. Consensus price target down from ر.س25.50 to ر.س24.76. Share price was steady at ر.س23.88 over the past week. Major Estimate Revision • Nov 07
Consensus EPS estimates increase by 7,658%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from ر.س1.19b to ر.س1.17b. EPS estimate rose from ر.س0.0017 to ر.س0.1334. Net income forecast to grow 58% next year vs 36% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س25.16. Share price fell 2.5% to ر.س23.82 over the past week. Major Estimate Revision • Nov 03
Consensus EPS estimates fall by 88% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ر.س1.23b to ر.س1.20b. EPS estimate also fell from ر.س0.0145 per share to ر.س0.0017 per share. Net income forecast to grow 77% next year vs 35% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target down from ر.س27.02 to ر.س25.50. Share price fell 2.2% to ر.س24.44 over the past week. New Risk • Oct 30
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 53% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (53% net debt to equity). Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (6.1% average weekly change). Reported Earnings • Oct 29
Third quarter 2024 earnings released: ر.س0.52 loss per share (vs ر.س0.17 profit in 3Q 2023) Third quarter 2024 results: ر.س0.52 loss per share (down from ر.س0.17 profit in 3Q 2023). Revenue: ر.س278.7m (down 11% from 3Q 2023). Net loss: ر.س33.4m (down 402% from profit in 3Q 2023). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 12
Price target decreased by 13% to ر.س27.90 Down from ر.س32.01, the current price target is an average from 5 analysts. New target price is 20% above last closing price of ر.س23.30. Stock is down 32% over the past year. The company is forecast to post earnings per share of ر.س0.13 for next year compared to ر.س0.13 last year. New Risk • Aug 06
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risk Paying a dividend despite being loss-making. Reported Earnings • Aug 05
Second quarter 2024 earnings released: ر.س0.37 loss per share (vs ر.س0.07 profit in 2Q 2023) Second quarter 2024 results: ر.س0.37 loss per share (down from ر.س0.07 profit in 2Q 2023). Revenue: ر.س301.1m (up 4.5% from 2Q 2023). Net loss: ر.س23.7m (down ر.س28.2m from profit in 2Q 2023). Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Major Estimate Revision • May 17
Consensus EPS estimates increase by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ر.س1.24b to ر.س1.28b. EPS estimate increased from ر.س0.39 to ر.س0.46 per share. Net income forecast to grow 60% next year vs 61% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target up from ر.س30.96 to ر.س31.60. Share price fell 3.0% to ر.س31.05 over the past week. New Risk • May 01
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Paying a dividend despite being loss-making. Announcement • Apr 03
Herfy Food Services Company, Annual General Meeting, Apr 24, 2024 Herfy Food Services Company, Annual General Meeting, Apr 24, 2024, at 16:00 Coordinated Universal Time. Agenda: To consider Voting on the company's auditor's report for the fiscal year ending on 31 December 2023 after discussion; to Viewing and discussing the financial statements for the fiscal year ending on 31 December 2023; to Viewing and discussing the report of the Board of Directors for the fiscal year ending on 31 December 2023; to Voting on the Board of Director's recommendation not to distribute dividends for the year ending on 31 December 2023; and to consider other matters. Major Estimate Revision • Mar 29
Consensus EPS estimates fall by 56% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ر.س1.25b to ر.س1.24b. EPS estimate also fell from ر.س0.878 per share to ر.س0.39 per share. Net income forecast to grow 210% next year vs 49% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س30.96. Share price fell 3.0% to ر.س33.80 over the past week. Reported Earnings • Mar 15
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: ر.س0.13 (up from ر.س0.055 in FY 2022). Revenue: ر.س1.17b (down 5.6% from FY 2022). Net income: ر.س8.39m (up 137% from FY 2022). Profit margin: 0.7% (up from 0.3% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 49%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 09
Third quarter 2023 earnings released: EPS: ر.س0.17 (vs ر.س0.32 in 3Q 2022) Third quarter 2023 results: EPS: ر.س0.17 (down from ر.س0.32 in 3Q 2022). Revenue: ر.س313.0m (up 1.1% from 3Q 2022). Net income: ر.س11.0m (down 47% from 3Q 2022). Profit margin: 3.5% (down from 6.8% in 3Q 2022). Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 08
Second quarter 2023 earnings released: EPS: ر.س0.07 (vs ر.س0.31 in 2Q 2022) Second quarter 2023 results: EPS: ر.س0.07 (down from ر.س0.31 in 2Q 2022). Revenue: ر.س288.2m (down 1.2% from 2Q 2022). Net income: ر.س4.54m (down 78% from 2Q 2022). Profit margin: 1.6% (down from 6.9% in 2Q 2022). Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Hospitality industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Price Target Changed • Jun 21
Price target decreased by 14% to ر.س31.88 Down from ر.س36.88, the current price target is an average from 4 analysts. New target price is 15% below last closing price of ر.س37.40. Stock is down 10.0% over the past year. The company is forecast to post earnings per share of ر.س1.07 for next year compared to ر.س0.055 last year. Price Target Changed • Jun 21
Price target decreased by 14% to ر.س31.88 Down from ر.س36.88, the current price target is an average from 4 analysts. New target price is 15% below last closing price of ر.س37.40. Stock is down 10.0% over the past year. The company is forecast to post earnings per share of ر.س1.07 for next year compared to ر.س0.055 last year. Price Target Changed • Nov 28
Price target decreased to ر.س39.30 Down from ر.س44.70, the current price target is an average from 5 analysts. New target price is 12% above last closing price of ر.س35.10. Stock is down 47% over the past year. The company is forecast to post earnings per share of ر.س1.81 for next year compared to ر.س2.49 last year. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 2 experienced directors. No highly experienced directors. 4 independent directors (5 non-independent directors). Independent Director Abdul Aziz Mohammed Al Raqib is the most experienced director on the board, commencing their role in 2021. Independent Director Hussein Alasmari was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Price Target Changed • Oct 27
Price target decreased to ر.س44.70 Down from ر.س49.00, the current price target is an average from 5 analysts. New target price is 16% above last closing price of ر.س38.40. Stock is down 41% over the past year. The company is forecast to post earnings per share of ر.س1.67 for next year compared to ر.س2.49 last year. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: ر.س0.32 (vs ر.س0.93 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.32 (down from ر.س0.93 in 3Q 2021). Revenue: ر.س309.5m (down 12% from 3Q 2021). Net income: ر.س20.9m (down 65% from 3Q 2021). Profit margin: 6.8% (down from 17% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Hospitality industry in Asia. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 8% per year. Reported Earnings • Aug 04
Second quarter 2022 earnings released: EPS: ر.س0.31 (vs ر.س0.41 in 2Q 2021) Second quarter 2022 results: EPS: ر.س0.31 (down from ر.س0.41 in 2Q 2021). Revenue: ر.س291.6m (down 9.3% from 2Q 2021). Net income: ر.س20.2m (down 24% from 2Q 2021). Profit margin: 6.9% (down from 8.3% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 8.8%, compared to a 32% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 7% per year. Major Estimate Revision • Jul 30
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from ر.س2.23 to ر.س2.55. Revenue forecast steady at ر.س1.39b. Net income forecast to shrink 5.0% next year vs 25% growth forecast for Hospitality industry in Saudi Arabia . Consensus price target down from ر.س56.30 to ر.س54.30. Share price rose 2.8% to ر.س44.40 over the past week. Price Target Changed • Jun 23
Price target decreased to ر.س57.68 Down from ر.س64.28, the current price target is an average from 5 analysts. New target price is 39% above last closing price of ر.س41.35. Stock is down 35% over the past year. The company is forecast to post earnings per share of ر.س2.23 for next year compared to ر.س2.49 last year. Reported Earnings • May 14
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: ر.س0.44 (up from ر.س0.39 in 1Q 2021). Revenue: ر.س328.2m (up 5.5% from 1Q 2021). Net income: ر.س28.4m (up 12% from 1Q 2021). Profit margin: 8.7% (up from 8.2% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.0%. Earnings per share (EPS) also missed analyst estimates by 1.2%. Over the next year, revenue is forecast to grow 9.5%, compared to a 44% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 2 independent directors. 8 non-independent directors. Independent Director Ahmed Al-Faleh was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Mar 29
Herfy Food Services Company Announces Management Changes The Board of Directors of herfy food Services Company announced the results of the Extraordinary General Assembly Meeting which was held in Riyadh – herfy Head Office by means of modern technology on 25 Shaban 1443 H Corresponding to 28th March 2022 at 08:30 p.m. after reaching the quorum of the right attending. Approval of the Board of Directors’ decision to appoint Eng. Hussein Ali Al-Asmari - an independent member of the Board of Directors - as a member of the Audit Committee, starting from 21 June 2021 AD until the end of the current committee’s period on 30 April 2024 AD, instead of the previous committee member MR: Isam Majed Al Muhaidib – Non Executive, the appointment will start from the date of the recommendation decision issued on 21 June 2021 AD, and this appointment accompany in accordance with the work regulations of the Audit Committee. Approval to terminate a member of the board of directors, Mr. Khaled Ahmed Al-Saeed, in accordance with Article (90) of the Companies Law, based on the submitted request from one of the shareholders who own more than (5%) of the company's capital. Non-Approval to terminate the Chairman of the board of directors, Eng./Moataz Qusai Al-Azzawi, in accordance with Article (90) of the Companies Law, based on the submitted request from one of the shareholders who own more than (5%) of the company's capital. Non-Approval to terminate a member of the board of directors, Eng. /Ahmed Mohamed El-faleh, in accordance with Article (90) of the Companies Law, based on the submitted request from one of the shareholders who own more than (5%) of the company's capital. Announcement • Mar 23
Herfy Food Services Company to Report Q4, 2021 Results on Mar 21, 2022 Herfy Food Services Company announced that they will report Q4, 2021 results on Mar 21, 2022 Price Target Changed • Nov 03
Price target increased to ر.س60.60 Up from ر.س55.62, the current price target is an average from 5 analysts. New target price is 16% below last closing price of ر.س72.00. Stock is up 39% over the past year. The company is forecast to post earnings per share of ر.س2.34 for next year compared to ر.س0.82 last year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS ر.س0.93 (vs ر.س0.64 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س352.2m (up 13% from 3Q 2020). Net income: ر.س60.1m (up 45% from 3Q 2020). Profit margin: 17% (up from 13% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS ر.س0.41 (vs ر.س0.53 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ر.س321.4m (up 89% from 2Q 2020). Net income: ر.س26.7m (up ر.س60.9m from 2Q 2020). Profit margin: 8.3% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Price Target Changed • Jun 11
Price target increased to ر.س54.94 Up from ر.س50.87, the current price target is an average from 5 analysts. New target price is 14% below last closing price of ر.س64.00. Stock is up 51% over the past year. Reported Earnings • May 11
First quarter 2021 earnings released: EPS ر.س0.39 (vs ر.س0.39 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: ر.س311.1m (up 4.8% from 1Q 2020). Net income: ر.س25.5m (up 1.3% from 1Q 2020). Profit margin: 8.2% (down from 8.5% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Executive Departure • May 01
MD & Executive Director has left the company On the 30th of April, Ahmed Bin Hamad Al-Said's tenure in the role of MD & Executive Director ended. We don't have any record of a personal shareholding under Ahmed Bin Hamad's name. Ahmed Bin Hamad is the only executive to leave the company over the last 12 months. Announcement • Apr 26
Herfy Food Services Company Approves Cash Dividend for the Year 2020, Payable on May 10, 2021 Herfy Food Services Company announced at the Ordinary General Assembly Meeting held on April 25, 2021 that the company approved to distribute cash dividends for the year 2020 total amount 64.680 million riyals at the rate of 1 riyal per share, which represents 10% of the per value of the share with a total Shareholders of 64.680 million share, provided the eligibility for dividend will be to Shareholders who own the shares on the day of Company's general assembly and registered in the company's shareholders register at Securities Depository Center by the end of the second trading day following the day of general assembly the dividend will be paid starting from 10 may 2021 by AL Rajhi bank any shareholder who does not receive the dividend can visit any AL Rajhi bank branch to collect it . Major Estimate Revision • Apr 14
Consensus EPS estimates fall to ر.س2.41 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from ر.س1.30b to ر.س1.27b. EPS estimate also fell from ر.س2.75 to ر.س2.41. Net income forecast to grow 207% next year vs 76% growth forecast for Hospitality industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س49.00. Share price fell 2.9% to ر.س63.90 over the past week. Reported Earnings • Mar 06
Full year 2020 earnings released: EPS ر.س0.82 (vs ر.س3.03 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س1.08b (down 17% from FY 2019). Net income: ر.س52.8m (down 73% from FY 2019). Profit margin: 4.9% (down from 15% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 06
Revenue and earnings miss expectations Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 32%. Over the next year, revenue is forecast to grow 19%, compared to a 29% growth forecast for the Hospitality industry in Saudi Arabia. Is New 90 Day High Low • Feb 26
New 90-day high: ر.س67.10 The company is up 15% from its price of ر.س58.20 on 26 November 2020. The Saudi market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ر.س30.32 per share. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of ر.س81.9m, down 59% from the prior year. Total revenue was ر.س1.10b over the last 12 months, down 14% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 29
Third-quarter earnings released: Revenue beats expectations Third-quarter revenue exceeded analyst estimates by 5.7% at ر.س311.1m. Revenue is forecast to grow 13% over the next year, compared to a 6.0% growth forecast for the Hospitality industry in Saudi Arabia. Is New 90 Day High Low • Oct 12
New 90-day high: ر.س57.10 The company is up 28% from its price of ر.س44.65 on 14 July 2020. The Saudi market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ر.س32.33 per share.