WBAG:DOC

Stock Analysis Report

Executive Summary

DO & CO Aktiengesellschaft provides catering services in Austria, Turkey, the Great Britain, the United States, Germany, and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has DO & CO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DOC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

DOC

-2.5%

AT Hospitality

-2.2%

AT Market


1 Year Return

6.8%

DOC

12.7%

AT Hospitality

3.6%

AT Market

Return vs Industry: DOC underperformed the Austrian Hospitality industry which returned 16.5% over the past year.

Return vs Market: DOC exceeded the Austrian Market which returned 4% over the past year.


Shareholder returns

DOCIndustryMarket
7 Day0.8%-2.5%-2.2%
30 Day8.7%-3.2%-2.9%
90 Day8.3%0.7%-2.5%
1 Year7.9%6.8%16.3%12.7%7.3%3.6%
3 Year64.1%57.4%23.0%11.9%28.4%16.8%
5 Year45.3%35.6%36.6%15.8%65.6%42.4%

Price Volatility Vs. Market

How volatile is DO & CO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DO & CO undervalued compared to its fair value and its price relative to the market?

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOC (€86.5) is trading below our estimate of fair value (€151.75)

Significantly Below Fair Value: DOC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DOC is poor value based on its PE Ratio (33.2x) compared to the Hospitality industry average (20.9x).

PE vs Market: DOC is poor value based on its PE Ratio (33.2x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: DOC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: DOC is overvalued based on its PB Ratio (3.9x) compared to the XE Hospitality industry average (1.6x).


Next Steps

Future Growth

How is DO & CO forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOC's forecast earnings growth (24.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: DOC's earnings (24.8% per year) are forecast to grow faster than the Austrian market (8.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DOC's revenue (10.5% per year) is forecast to grow faster than the Austrian market (2.5% per year).

High Growth Revenue: DOC's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOC's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has DO & CO performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOC has high quality earnings.

Growing Profit Margin: DOC's current net profit margins (2.8%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: DOC's earnings have declined by -7.6% per year over the past 5 years.

Accelerating Growth: DOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DOC had negative earnings growth (-9%) over the past year, making it difficult to compare to the Hospitality industry average (-7%).


Return on Equity

High ROE: DOC's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DO & CO's financial position?


Financial Position Analysis

Short Term Liabilities: DOC's short term assets (€346.6M) exceed its short term liabilities (€221.4M).

Long Term Liabilities: DOC's short term assets (€346.6M) exceed its long term liabilities (€299.4M).


Debt to Equity History and Analysis

Debt Level: DOC's debt to equity ratio (108.9%) is considered high.

Reducing Debt: DOC's debt to equity ratio has increased from 83.4% to 108.9% over the past 5 years.

Debt Coverage: DOC's debt is well covered by operating cash flow (25.2%).

Interest Coverage: DOC's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: DOC has a high level of physical assets or inventory.

Debt Coverage by Assets: DOC's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is DO & CO's current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.6%markettop25%4.4%industryaverage2.8%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: DOC's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: DOC's dividend (0.98%) is low compared to the top 25% of dividend payers in the Austrian market (4.17%).


Stability and Growth of Payments

Stable Dividend: DOC is not paying a notable dividend for the Austrian market, therefore no need to check if payments are stable.

Growing Dividend: DOC is not paying a notable dividend for the Austrian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DOC is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DOC's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

What is the CEO of DO & CO's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average board tenure


CEO

Attila Dogudan (60yo)

7.5yrs

Tenure

€1,358,000

Compensation

Mr. Attila Dogudan serves as Managing Director of Arena One GmbH. Mr. Dogudan has been the Chief Executive Officer of DO & CO Aktiengesellschaft since July 16, 2012. Mr. Dogudan serves as the Chairman of t ...


CEO Compensation Analysis

Compensation vs Market: Attila's total compensation ($USD1.51M) is above average for companies of similar size in the Austrian market ($USD1.14M).

Compensation vs Earnings: Attila's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

2.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: DOC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Attila Dogudan (60yo)

    Chairman of Management Board & CEO

    • Tenure: 7.5yrs
    • Compensation: €1.36m
  • Gottfried Neumeister (42yo)

    Chief Commercial Officer & Member of Management Board

    • Tenure: 7.5yrs
    • Compensation: €1.97m

Board Members

  • Mehmet Kozlu (73yo)

    Second Deputy Chairman of Supervisory Board

    • Georg Thurn-Vrints (63yo)

      Independent Member of Supervisory Board

      • Tenure: 22.8yrs
    • Andreas Bierwirth (48yo)

      Chairman of Supervisory Board

      • Tenure: 2.4yrs
    • Peter Hoffmann-Ostenhof (64yo)

      First Deputy Chairman of Supervisory Board

      • Tenure: 2.4yrs

    Company Information

    DO & CO Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: DO & CO Aktiengesellschaft
    • Ticker: DOC
    • Exchange: WBAG
    • Founded: 1981
    • Industry: Restaurants
    • Sector: Consumer Services
    • Market Cap: €886.704m
    • Shares outstanding: 9.74m
    • Website: https://www.doco.com

    Number of Employees


    Location

    • DO & CO Aktiengesellschaft
    • Stephansplatz 12
    • Vienna
    • Vienna
    • 1010
    • Austria

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    DOQDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 1998
    DOCWBAG (Wiener Boerse AG)YesBearer SharesATEURJun 1998
    0LSE (London Stock Exchange)YesBearer SharesGBEURJun 1998
    DOQXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 1998
    DOCOIBSE (Borsa Istanbul (BIST))YesBearer SharesTRTRYJun 1998
    DOCVBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 1998
    DOCO.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 1998

    Biography

    DO & CO Aktiengesellschaft provides catering services in Austria, Turkey, the Great Britain, the United States, Germany, and internationally. It operates through three divisions: Airline Catering; International Event Catering; and Restaurants, Lounges & Hotel. The Airline Catering division offers airline catering services. The International Event Catering division provides event catering and infrastructure services. The Restaurants, Lounges & Hotel division engages in the operation of restaurants and Demel cafés, lounges, hotels, and staff restaurants; and retail and airport gastronomy businesses. DO & CO Aktiengesellschaft was founded in 1981 and is based in Vienna, Austria. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 20:51
    End of Day Share Price2020/01/28 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.