New Risk • Jul 09
New major risk - Revenue and earnings growth Earnings have declined by 11% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 131% Earnings have declined by 11% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JA$4.16b market cap, or US$26.2m). 공고 • Jun 29
Dolphin Cove Limited, Annual General Meeting, Jul 30, 2026 Dolphin Cove Limited, Annual General Meeting, Jul 30, 2026. Location: the courtleigh hotel & suites, 85 knutsford boulevard, kingston 5, Jamaica Reported Earnings • Jun 03
Full year 2025 earnings released: US$0.006 loss per share (vs US$0.005 profit in FY 2024) Full year 2025 results: US$0.006 loss per share (down from US$0.005 profit in FY 2024). Revenue: US$13.1m (down 14% from FY 2024). Net loss: US$2.34m (down 228% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 52% 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. Board Change • May 20
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. Director Steve Strom was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: US$0.001 (vs US$0.002 in 3Q 2023) Third quarter 2024 results: EPS: US$0.001 (down from US$0.002 in 3Q 2023). Revenue: US$3.18m (down 19% from 3Q 2023). Net income: US$206.8k (down 78% from 3Q 2023). Profit margin: 6.5% (down from 24% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: US$0.002 (vs US$0.003 in 2Q 2023) Second quarter 2024 results: EPS: US$0.002 (down from US$0.003 in 2Q 2023). Revenue: US$3.87m (down 13% from 2Q 2023). Net income: US$746.3k (down 35% from 2Q 2023). Profit margin: 19% (down from 26% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 30% per year. 공고 • Jun 22
Dolphin Cove Limited, Annual General Meeting, Jun 26, 2024 Dolphin Cove Limited, Annual General Meeting, Jun 26, 2024. Location: courtyard by marriott, 1 park close, kingston 5., Jamaica Reported Earnings • Apr 04
Full year 2023 earnings released: EPS: US$0.008 (vs US$0.008 in FY 2022) Full year 2023 results: EPS: US$0.008 (in line with FY 2022). Revenue: US$17.1m (up 13% from FY 2022). Net income: US$3.06m (up 3.0% from FY 2022). Profit margin: 18% (down from 20% in FY 2022). 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 only increased by 35% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 17
Third quarter 2023 earnings released: EPS: US$0.002 (vs US$0.003 in 3Q 2022) Third quarter 2023 results: EPS: US$0.002 (down from US$0.003 in 3Q 2022). Revenue: US$3.94m (down 9.2% from 3Q 2022). Net income: US$953.0k (down 20% from 3Q 2022). Profit margin: 24% (down from 27% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JA$18.70, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 12x in the Hospitality industry in Jamaica. Total returns to shareholders of 254% over the past three years. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: US$0.003 (vs US$0.003 in 2Q 2022) Second quarter 2023 results: EPS: US$0.003 (in line with 2Q 2022). Revenue: US$4.42m (up 5.4% from 2Q 2022). Net income: US$1.15m (up 10% from 2Q 2022). Profit margin: 26% (up from 25% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JA$16.86, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 18x in the Hospitality industry in Jamaica. Total returns to shareholders of 128% over the past three years. Upcoming Dividend • Mar 02
Upcoming dividend of JA$0.40 per share at 5.5% yield Eligible shareholders must have bought the stock before 09 March 2023. Payment date: 27 March 2023. Payout ratio is on the higher end at 85%, however this is supported by cash flows. Trailing yield: 5.5%. Within top quartile of Jamaican dividend payers (3.6%). Lower than average of industry peers (9.9%). Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: US$0.003 (vs US$0.003 in 3Q 2021) Third quarter 2022 results: EPS: US$0.003 (in line with 3Q 2021). Revenue: US$4.44m (up 73% from 3Q 2021). Net income: US$1.13m (up 9.5% from 3Q 2021). Profit margin: 25% (down from 40% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. 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. 7 experienced directors. 2 highly experienced directors. 4 independent directors (5 non-independent directors). Independent Director & Mentor Richard Downer was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improved over the past week After last week's 19% share price gain to JA$15.50, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 16x in the Hospitality industry in Jamaica. Total returns to shareholders of 98% over the past three years. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improved over the past week After last week's 15% share price gain to JA$17.55, the stock trades at a trailing P/E ratio of 18.5x. Average trailing P/E is 19x in the Hospitality industry in Jamaica. Total returns to shareholders of 70% over the past three years. Board Change • Jun 04
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director & Mentor Richard Downer was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • May 26
Investor sentiment deteriorated over the past week After last week's 19% share price decline to JA$16.32, the stock trades at a trailing P/E ratio of 22.6x. Average trailing P/E is 20x in the Hospitality industry in South America. Total returns to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improved over the past week After last week's 23% share price gain to JA$27.00, the stock trades at a trailing P/E ratio of 37.7x. Average trailing P/E is 32x in the Hospitality industry in South America. Total returns to shareholders of 115% over the past three years. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 18% share price decline to JA$22.35, the stock trades at a trailing P/E ratio of 31x. Average trailing P/E is 32x in the Hospitality industry in South America. Total returns to shareholders of 90% over the past three years. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improved over the past week After last week's 18% share price gain to JA$29.00, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 29x in the Hospitality industry in South America. Total returns to shareholders of 135% over the past three years. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment improved over the past week After last week's 17% share price gain to JA$25.99, the stock trades at a trailing P/E ratio of 35.5x. Average trailing P/E is 29x in the Hospitality industry in South America. Total returns to shareholders of 96% over the past three years. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improved over the past week After last week's 24% share price gain to JA$19.20, the stock trades at a trailing P/E ratio of 26.7x. Average trailing P/E is 25x in the Hospitality industry in South America. Total returns to shareholders of 45% over the past three years. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 27% share price gain to JA$17.20, the stock trades at a trailing P/E ratio of 23.9x. Average trailing P/E is 25x in the Hospitality industry in South America. Total returns to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improved over the past week After last week's 22% share price gain to JA$12.50, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 28x in the Hospitality industry in South America. Total loss to shareholders of 14% over the past three years. 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. 6 non-independent directors. Independent Director & Mentor Richard Downer was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 14
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: US$4.28m (down 71% from FY 2019). Net loss: US$1.13m (down 170% from profit in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 10
New 90-day high: JA$11.00 The company is up 57% from its price of JA$7.00 on 08 October 2020. The Jamaican market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 18% over the same period. Is New 90 Day High Low • Dec 23
New 90-day high: JA$7.30 The company is up 4.0% from its price of JA$7.00 on 21 September 2020. The Jamaican market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 20% over the same period. Is New 90 Day High Low • Nov 25
New 90-day low: JA$5.50 The company is down 15% from its price of JA$6.50 on 27 August 2020. The Jamaican market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 10.0% over the same period.