TSXV:SPS.A

Stock Analysis Report

Executive Summary

Sportscene Group Inc. develops, operates, and franchises a chain of sports entertainment-themed resto-bars under the La Cage-Brasserie sportive brand in Quebec, Canada.

Snowflake

Fundamentals

Acceptable track record and slightly overvalued.

Risks

  • Sportscene Group is not covered by any analysts.

Share Price & News

How has Sportscene Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-15.0%

SPS.A

-1.3%

CA Hospitality

1.3%

CA Market


1 Year Return

30.8%

SPS.A

-18.9%

CA Hospitality

-0.1%

CA Market

SPS.A outperformed the Hospitality industry which returned -18.9% over the past year.

SPS.A outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

SPS.AIndustryMarket
7 Day-15.0%-1.3%1.3%
30 Day3.5%6.3%4.7%
90 Day-8.5%-3.3%1.6%
1 Year34.4%30.8%-18.3%-18.9%3.4%-0.1%
3 Year169.6%153.2%20.2%17.0%19.1%8.4%
5 Year56.3%46.7%-2.1%-4.9%23.2%5.7%

Price Volatility Vs. Market

How volatile is Sportscene Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sportscene Group undervalued based on future cash flows and its price relative to the stock market?

16.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sportscene Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sportscene Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sportscene Group is good value based on earnings compared to the CA Hospitality industry average.

Sportscene Group is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sportscene Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Sportscene Group is good value based on assets compared to the CA Hospitality industry average.


Next Steps

Future Growth

How is Sportscene Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Sportscene Group is high growth as no revenue estimate data is available.

Sportscene Group's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Sportscene Group's revenue growth to the Canada market average as no estimate data is available.

Sportscene Group's earnings growth is positive but not above the Canada market average.

Sportscene Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sportscene Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sportscene Group performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sportscene Group has delivered over 20% year on year earnings growth in the past 5 years.

Sportscene Group's 1-year earnings growth is less than its 5-year average (9.9% vs 23.3%)

Sportscene Group's earnings growth has exceeded the CA Hospitality industry average in the past year (9.9% vs -12.2%).


Return on Equity

Sportscene Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sportscene Group used its assets less efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Sportscene Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Sportscene Group's financial position?


Financial Position Analysis

Sportscene Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sportscene Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sportscene Group's level of debt (56.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.2% vs 56.4% today).

Debt is well covered by operating cash flow (26.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is Sportscene Group's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield and Payments Analysis

Sportscene Group's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Sportscene Group's dividend is below the markets top 25% of dividend payers in Canada (5.77%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sportscene Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Jean Bédard (55yo)

0yrs

Tenure

CA$422,304

Compensation

Mr. Jean Bédard, CPA, CA, serves as the Executive Chairman of the Board, Chief Executive Officer and President of Sportscene Group Inc. (Formerly Known as Sportscene Restaurants Inc.). Mr. Bédard serves as ...


CEO Compensation Analysis

Jean's remuneration is higher than average for companies of similar size in Canada.

Jean's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

The tenure for the Sportscene Group management team is about average.


Board Age and Tenure

1.4yrs

Average Tenure

57yo

Average Age

The average tenure for the Sportscene Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Sportscene Group individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$43,70029 Aug 19
Jean Bédard
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares7,600
Max PriceCA$5.75
BuyCA$13,20030 Jan 19
Jean Bédard
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,200
Max PriceCA$6.00
BuyCA$9,95026 Jan 19
Jean Bédard
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,000
Max PriceCA$4.98
BuyCA$1,99026 Jan 19
Robert Dépatie
EntityIndividual
Role
Member of the Board of Directors
Director
Shares400
Max PriceCA$4.98
BuyCA$12,93520 Dec 18
Jean-François Dubé
EntityIndividual
Role
Chief Operating Officer
Vice-President of Operations & Food Services
Shares2,600
Max PriceCA$4.98
BuyCA$49,02614 Dec 18
8534594 Canada Inc.
EntityCompany
Shares10,000
Max PriceCA$4.91

Ownership Breakdown


Management Team

  • Jeanne Lebrun

    Vice President of Procurement

    • Tenure: 0yrs
    • Compensation: CA$177.50k
  • Jean Bédard (55yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$422.30k
  • Jean-François Dubé

    Vice-President of Operations & Food Services

    • Tenure: 0yrs
    • Compensation: CA$201.10k
  • Caroline Pedneault

    Secretary

    • Tenure: 0yrs
  • François-Xavier Pilon

    Vice-President of Finance

    • Tenure: 2.4yrs
    • Compensation: CA$170.48k
  • Cynthia Jodoin

    Vice President of Human Resources

    • Tenure: 3.7yrs
  • Marc Pelletier

    Vice President of Marketing & Communications

    • Tenure: 0.7yrs

Board Members

  • Jean-Marc Léger (57yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$7.00k
  • Marc Poulin (57yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$8.00k
  • Nelson Gentiletti (57yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: CA$21.50k
  • Charles St-Germain

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CA$14.50k
  • Jean Bédard (55yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$422.30k
  • Robert Dépatie (60yo)

    Director

    • Tenure: 0.7yrs
  • Philippe Duval

    Director

    • Tenure: 1.7yrs
    • Compensation: CA$9.00k
  • Claudine Roy

    Director

    • Tenure: 0.7yrs
  • Annick Mongeau (44yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: CA$21.50k

Company Information

Sportscene Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sportscene Group Inc.
  • Ticker: SPS.A
  • Exchange: TSXV
  • Founded: 1983
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$50.859m
  • Shares outstanding: 8.55m
  • Website: https://www.cage.ca

Number of Employees


Location

  • Sportscene Group Inc.
  • 1180 Place Nobel
  • Suite 102
  • Boucherville
  • Quebec
  • J4B 5L2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPS.ATSXV (TSX Venture Exchange)YesClass A SharesCACADSep 1988

Biography

Sportscene Group Inc. develops, operates, and franchises a chain of sports entertainment-themed resto-bars under the La Cage-Brasserie sportive brand in Quebec, Canada. The company also sells La Cage brand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:00
End of Day Share Price2019/09/20 00:00
Earnings2019/05/26
Annual Earnings2018/08/26


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.