Gulf Hotels Group B.S.C (BAX:GHG) - Share price, News & Analysis

GHG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

GHG Stock Overview

Gulf Hotels Group B.S.C., together with its subsidiaries, owns, operates, and manages hotels and restaurants.

Rewards

PE ratio (25.6x) is below the Hospitality industry average (27.3x)

Became profitable this year

Risk Analysis

Earnings have declined by 55.3% per year over past 5 years

Dividend of 5.19% is not well covered by earnings

Large one-off items impacting financial results

Gulf Hotels Group B.S.C Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gulf Hotels Group B.S.C
Historical stock prices
Current Share Price	ب.د0.39
52 Week High	ب.د0.39
52 Week Low	ب.د0.30
Beta	0.13
1 Month Change	10.00%
3 Month Change	28.33%
1 Year Change	n/a
3 Year Change	-6.55%
5 Year Change	-29.36%
Change since IPO	141.14%

Shareholder Returns

	GHG	BH Hospitality	BH Market
7D	6.9%	-2.5%	-4.6%
1Y	n/a	-15.5%	31.2%

Return vs Industry: Insufficient data to determine how GHG performed against the BH Hospitality industry.

Return vs Market: Insufficient data to determine how GHG performed against the BH Market.

Price Volatility

Is GHG's price volatile compared to industry and market?
GHG volatility
GHG Average Weekly Movement	n/a
Hospitality Industry Average Movement	5.8%
Market Average Movement	2.4%
10% most volatile stocks in BH Market	6.8%
10% least volatile stocks in BH Market	1.7%

Stable Share Price: Insufficient data to determine GHG's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine GHG's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1967	770	Garfield Jones	https://www.gulfhotelsgroup.com

Gulf Hotels Group B.S.C., together with its subsidiaries, owns, operates, and manages hotels and restaurants. The company operates through Hotel Operations, Food and Beverage, and Investments and Other Activities segments. It owns and operates the Gulf Hotel, Gulf Executive Residence Adliya and Juffair, the Gulf Convention Centre, Gulf Executive Offices, GHG Colombo in Sri Lanka; Crowne Plaza Bahrain; Gulf Court Hotel Business Bay in Dubai; and Gulf Brands International in the Kingdom of Bahrain.

Gulf Hotels Group B.S.C Fundamentals Summary

How do Gulf Hotels Group B.S.C's earnings and revenue compare to its market cap?
GHG fundamental statistics
Market Cap	ب.د87.01m
Earnings (TTM)	ب.د3.40m
Revenue (TTM)	ب.د22.92m

25.6x

P/E Ratio

3.8x

P/S Ratio

Is GHG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GHG income statement (TTM)
Revenue	ب.د22.92m
Cost of Revenue	ب.د12.68m
Gross Profit	ب.د10.24m
Other Expenses	ب.د6.84m
Earnings	ب.د3.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.015
Gross Margin	44.68%
Net Profit Margin	14.82%
Debt/Equity Ratio	5.3%

How did GHG perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

133%

Payout Ratio

Valuation

Is Gulf Hotels Group B.S.C undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

25.63x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: GHG (BHD0.39) is trading above our estimate of fair value (BHD0.25)

Significantly Below Fair Value: GHG is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: GHG is good value based on its PE Ratio (25.6x) compared to the Asian Hospitality industry average (27.3x).

PE vs Market: GHG is poor value based on its PE Ratio (25.6x) compared to the BH market (13.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GHG's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: GHG is good value based on its PB Ratio (0.9x) compared to the XA Hospitality industry average (1.7x).

Future Growth

How is Gulf Hotels Group B.S.C forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

47.9%

Forecasted Consumer Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gulf Hotels Group B.S.C has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Gulf Hotels Group B.S.C performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-55.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GHG has a large one-off gain of BHD2.1M impacting its December 31 2021 financial results.

Growing Profit Margin: GHG became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GHG's earnings have declined by 55.3% per year over the past 5 years.

Accelerating Growth: GHG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GHG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (19.7%).

Return on Equity

High ROE: GHG's Return on Equity (3.3%) is considered low.

Financial Health

How is Gulf Hotels Group B.S.C's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GHG's short term assets (BHD10.7M) exceed its short term liabilities (BHD7.8M).

Long Term Liabilities: GHG's short term assets (BHD10.7M) exceed its long term liabilities (BHD3.8M).

Debt to Equity History and Analysis

Debt Level: GHG has more cash than its total debt.

Reducing Debt: Insufficient data to determine if GHG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GHG's debt is well covered by operating cash flow (156.8%).

Interest Coverage: Insufficient data to determine if GHG's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Gulf Hotels Group B.S.C current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GHG's dividend (5.19%) is higher than the bottom 25% of dividend payers in the BH market (3.71%).

High Dividend: GHG's dividend (5.19%) is low compared to the top 25% of dividend payers in the BH market (5.59%).

Stability and Growth of Payments

Stable Dividend: GHG's dividend payments have been volatile in the past 10 years.

Growing Dividend: GHG's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (133.1%), GHG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.8%), GHG's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure

CEO

Garfield Jones

5.33yrs

Tenure

Mr. Garfield Jones has been the Managing Director of Bahrain Family Leisure Company B.S.C. since April 24, 2017 and serves as its Director since 2021 and served as its Vice Chairman since April 24, 2017 un...

Leadership Team

Experienced Management: GHG's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: GHG's board of directors are seasoned and experienced ( 13.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31