Reported Earnings • Oct 05
Full year 2024 earnings released: EPS: US$0.001 (vs US$0.002 in FY 2023) Full year 2024 results: EPS: US$0.001 (down from US$0.002 in FY 2023). Revenue: US$25.6m (up 21% from FY 2023). Net income: US$1.41m (down 48% from FY 2023). Profit margin: 5.5% (down from 13% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JA$3.19, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 13x in the Hospitality industry in Jamaica. Total loss to shareholders of 12% over the past three years. Annuncio • Sep 10
Express Catering Limited to Report Fiscal Year 2024 Final Results on Sep 20, 2024 Express Catering Limited announced that they will report fiscal year 2024 final results on Sep 20, 2024 Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JA$3.27, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 15x in the Hospitality industry in Jamaica. Total loss to shareholders of 44% over the past three years. Annuncio • Aug 04
Express Catering Limited Approves an Interim Dividend, Payable on October 31, 2024 Express Catering Limited at its meeting held on July 31, 2024, an interim dividend of 0.0306 US Cents per share was determined. This will be paid to all shareholders on record on August 20, 2024. It was proposed that the payment date be October 31, 2024. The ex-dividend date is August 20, 2024. New Risk • Jun 20
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 Jamaican stocks, typically moving 13% 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.2x net interest cover). Earnings have declined by 2.1% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (JA$6.89b market cap, or US$44.3m). Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JA$4.65, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 16x in the Hospitality industry in Jamaica. Total loss to shareholders of 27% over the past three years. Reported Earnings • Apr 17
Third quarter 2024 earnings released: EPS: US$0.001 (vs US$0.001 in 3Q 2023) Third quarter 2024 results: EPS: US$0.001 (in line with 3Q 2023). Revenue: US$7.09m (up 17% from 3Q 2023). Net income: US$1.06m (down 7.9% from 3Q 2023). Profit margin: 15% (down from 19% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JA$4.47, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 14x in the Hospitality industry in Jamaica. Negligible returns to shareholders over past three years. Reported Earnings • Jan 17
Second quarter 2024 earnings released: EPS: US$0 (vs US$0 in 2Q 2023) Second quarter 2024 results: EPS: US$0 (in line with 2Q 2023). Revenue: US$5.18m (up 23% from 2Q 2023). Net income: US$187.2k (up 48% from 2Q 2023). Profit margin: 3.6% (up from 3.0% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Annuncio • Jan 05
Express Catering Limited Appoints Andrew Spencer to the Remuneration Committee of the Board Express Catering Limited announced that effective December 28, 2023, Professor Andrew Spencer has been appointed to the Remuneration Committee of the Board of Directors. New Risk • Nov 11
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 Jamaican stocks, typically moving 13% 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Earnings have declined by 18% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (JA$7.21b market cap, or US$46.3m). Reported Earnings • Sep 18
Full year 2023 earnings released: EPS: US$0.002 (vs US$0.001 in FY 2022) Full year 2023 results: EPS: US$0.002 (up from US$0.001 in FY 2022). Revenue: US$21.2m (up 49% from FY 2022). Net income: US$2.70m (up 146% from FY 2022). Profit margin: 13% (up from 7.7% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JA$4.27, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 11x in the Hospitality industry in Jamaica. Total returns to shareholders of 8.4% over the past three years. Reported Earnings • Apr 16
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: US$6.04m (up 74% from 3Q 2022). Net income: US$1.15m (up US$1.03m from 3Q 2022). Profit margin: 19% (up from 3.5% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 10% per year. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JA$5.45, the stock trades at a trailing P/E ratio of 35.9x. Average trailing P/E is 15x in the Hospitality industry in Jamaica. Total returns to shareholders of 36% over the past three years. Reported Earnings • Jan 24
Second quarter 2023 earnings released: EPS: US$0 (vs US$0 in 2Q 2022) Second quarter 2023 results: EPS: US$0 (in line with 2Q 2022). Revenue: US$4.20m (up 69% from 2Q 2022). Net income: US$126.8k (up US$447.6k from 2Q 2022). Profit margin: 3.0% (up from net loss in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. 2 independent directors (4 non-independent directors). Director Harriat Maragh was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 19
Full year 2022 earnings released: EPS: US$0.001 (vs US$0.001 loss in FY 2021) Full year 2022 results: EPS: US$0.001 (up from US$0.001 loss in FY 2021). Revenue: US$14.2m (up 223% from FY 2021). Net income: US$1.10m (up US$2.83m from FY 2021). Profit margin: 7.7% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. 2 independent directors (4 non-independent directors). Director Harriat Maragh was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 26
Full year 2021 earnings released: US$0.001 loss per share (vs US$0.001 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: US$4.41m (down 69% from FY 2020). Net loss: US$1.73m (down 211% from profit in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Board Change • Jul 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Director Harriat Maragh was the last director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Is New 90 Day High Low • Mar 04
New 90-day low: JA$3.07 The company is down 12% from its price of JA$3.50 on 03 December 2020. The Jamaican market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is down 2.0% over the same period. Reported Earnings • Nov 07
First quarter 2021 earnings released: US$0.001 loss per share The company reported a poor first quarter result with weaker earnings, revenues and control over expenses. First quarter 2021 results: Revenue: US$444.1k (down 90% from 1Q 2020). Net loss: US$1.08m (down 204% from profit in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 6% per year and the company’s share price has also fallen by 6% per year. Valuation Update With 7 Day Price Move • Oct 30
Market bids up stock over the past week After last week's 19% share price gain to US$3.75, the stock is trading at a trailing P/E ratio of 11x, up from the previous P/E ratio of 9.3x. This compares to an average P/E of 13x in the Hospitality industry in South America. Total returns to shareholders over the past three years are 369%. Is New 90 Day High Low • Oct 22
New 90-day low: JA$3.00 The company is down 30% from its price of JA$4.31 on 24 July 2020. The Jamaican market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is down 5.0% over the same period. Valuation Update With 7 Day Price Move • Oct 22
Market pulls back on stock over the past week After last week's 23% share price decline to US$3.00, the stock is trading at a trailing P/E ratio of 8.9x, down from the previous P/E ratio of 11.5x. This compares to an average P/E of 12x in the Hospitality industry in South America. Total returns to shareholders over the past three years are 253%.