National Hotels Company B.S.C (BAX:NHOTEL) - Share price, News & Analysis

NHOTEL fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

NHOTEL Stock Overview

National Hotels Company B.S.C. owns and operates a hotel in the Kingdom of Bahrain.

Rewards

PE ratio (15.6x) is below the Hospitality industry average (28.2x)

Became profitable this year

Risk Analysis

Earnings have declined by 54.5% per year over past 5 years

Dividend of 7.25% is not well covered by earnings or forecast to be in the next 3 years

Shares are highly illiquid

Does not have a meaningful market cap (BHD17M)

National Hotels Company B.S.C Competitors

Price History & Performance

Summary of all time highs, changes and price drops for National Hotels Company B.S.C
Historical stock prices
Current Share Price	ب.د0.14
52 Week High	ب.د0.14
52 Week Low	ب.د0.12
Beta	0.0026
1 Month Change	n/a
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	19.54%

Shareholder Returns

	NHOTEL	BH Hospitality	BH Market
7D	2.2%	1.5%	-2.3%
1Y	n/a	-14.8%	27.0%

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

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

Price Volatility

Is NHOTEL's price volatile compared to industry and market?
NHOTEL volatility
NHOTEL Average Weekly Movement	n/a
Hospitality Industry Average Movement	5.7%
Market Average Movement	2.8%
10% most volatile stocks in BH Market	6.1%
10% least volatile stocks in BH Market	1.7%

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

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

About the Company

Founded	Employees	CEO	Website
1974	n/a	Zaher Al-Ajjawi	https://www.nhcbahrain.com

National Hotels Company B.S.C. owns and operates a hotel in the Kingdom of Bahrain. The company operates through Hotel Business, Office Towers, and Investments and Corporate segments. It owns the Diplomat Radisson BLU Hotel, a five-star hotel with 246 rooms.

National Hotels Company B.S.C Fundamentals Summary

How do National Hotels Company B.S.C's earnings and revenue compare to its market cap?
NHOTEL fundamental statistics
Market Cap	ب.د16.60m
Earnings (TTM)	ب.د1.06m
Revenue (TTM)	ب.د5.50m

15.6x

P/E Ratio

3.0x

P/S Ratio

Is NHOTEL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NHOTEL income statement (TTM)
Revenue	ب.د5.50m
Cost of Revenue	ب.د3.63m
Gross Profit	ب.د1.87m
Other Expenses	ب.د805.13k
Earnings	ب.د1.06m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.0089
Gross Margin	33.97%
Net Profit Margin	19.34%
Debt/Equity Ratio	0.0%

How did NHOTEL perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

119%

Payout Ratio

Valuation

Is National Hotels Company 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

15.59x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NHOTEL (BHD0.14) is trading above our estimate of fair value (BHD0.04)

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

Price To Earnings Ratio

PE vs Industry: NHOTEL is good value based on its PE Ratio (15.6x) compared to the Asian Hospitality industry average (28.2x).

PE vs Market: NHOTEL is poor value based on its PE Ratio (15.6x) compared to the BH market (13.6x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: NHOTEL is good value based on its PB Ratio (0.2x) compared to the XA Hospitality industry average (1.7x).

Future Growth

How is National Hotels Company 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

45.1%

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 National Hotels Company 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 National Hotels Company B.S.C performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-54.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NHOTEL has high quality earnings.

Growing Profit Margin: NHOTEL became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NHOTEL's earnings have declined by 54.5% per year over the past 5 years.

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

Earnings vs Industry: NHOTEL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (19.4%).

Return on Equity

High ROE: NHOTEL's Return on Equity (1.4%) is considered low.

Financial Health

How is National Hotels Company B.S.C's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: NHOTEL's short term assets (BHD7.9M) exceed its short term liabilities (BHD2.5M).

Long Term Liabilities: NHOTEL's short term assets (BHD7.9M) exceed its long term liabilities (BHD216.1K).

Debt to Equity History and Analysis

Debt Level: NHOTEL is debt free.

Reducing Debt: NHOTEL has no debt compared to 5 years ago when its debt to equity ratio was 3.8%.

Debt Coverage: NHOTEL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NHOTEL has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

7.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NHOTEL's dividend (7.25%) is higher than the bottom 25% of dividend payers in the BH market (3.73%).

High Dividend: NHOTEL's dividend (7.25%) is in the top 25% of dividend payers in the BH market (5.68%)

Stability and Growth of Payments

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

Growing Dividend: NHOTEL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (118.9%), NHOTEL's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (166.7%), NHOTEL's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average board tenure

CEO

Zaher Al-Ajjawi

3.33yrs

Tenure

Mr. Zaher Mohammed Al-Ajjawi has been Chief Executive Officer at National Hotels Company B.S.C. since 2019 and served as its a Director.

Board Members

Experienced Board: NHOTEL's board of directors are considered experienced (3.3 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	2022/05/22 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31