AmRest Holdings SE, through its subsidiaries, operates and manages quick service and casual dining restaurants in Central and Eastern Europe, Western Europe, Russia, and China.
The last earnings update was 40 days ago.
Discounted Cash Flow Calculation for DB:1QT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:1QT DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
AmRest Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
AmRest Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
AmRest Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
AmRest Holdings's earnings are expected to grow significantly at over 20% yearly.
AmRest Holdings's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
AmRest Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Mark R. Chandler has been Member of Management Board at AmRest Holdings SE since July 31, 2013 and also has been its Chief Financial Officer since November 2008 and also serves as its CEO. Mr. Chandler is responsible for the Finance Department, the Supply Chain Department, the IT Department, the Legal Department and the Relationships with Investors Department at AmRest Holdings. He served as a Member of Management Board of AmRest Holdings SE since December 16, 2010 until June 27, 2013. He served as Chief Financial Officer of Oh! Shoes. He served as Chief Financial Officer and Chief Operating Officer of OnScreen Technologies Inc. until June 4 2007. He also served as Principal Accounting Officer of OnScreen Technologies Inc. He joined OnScreen Technologies Inc. in January 2004 after working 23 years with Sara Lee Corporation where he held several senior positions in finance, general management and operations. He served as he Chief Executive Officer of Business Development Europe and a Member of the Management Board of Sara Lee Apparel Europe. He served as the Group Chief Financial Officer for the $2 billion European apparel group for Sara Lee where he had been responsible for all financial and administrative activities, IT and strategic planning. He also led the Sara Lee and launch of a new technological breakthrough product for the European apparel market. Mr. Chandler has extensive and diversified international experience in finance, IT, strategic planning and implementation, operations and general management, treasury, business development and corporate development including acquisitions and divestments. Mr. Chandler began his career with American Express as an internal consultant and held several financial positions with General Foods. He moved to Playtex, Inc. in 1980 and actively participated in two leverage buyouts prior to Playtex being sold to Sara Lee in 1991. He served as Member of the Board of Directors of Sara Lee Apparel Europe. Mr. Chandler serves as a Member of the European Executive Council. He also serves as a Director of the non-profit Frontier Foundation. Mr. Chandler holds a bachelor of arts degree in mathematics and economics from Whitman College in 1976 and an MBA in finance and marketing from Columbia University Graduate School of Business in 1978.
Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
Mark's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the AmRest Holdings management team is less than 2 years, this suggests a new team.
CEO, CFO & Member of Management Board
Chief People Officer & Member of Management Board
COO & Member of Management Board
IR and M&A Director
Chief Strategy Officer
Chief Digital Officer
Chief Development Officer
Food Service President
President of Owned Brands
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the AmRest Holdings board of directors is less than 3 years, this suggests a new board.
AmRest Holdings SE, through its subsidiaries, operates and manages quick service and casual dining restaurants in Central and Eastern Europe, Western Europe, Russia, and China. It operates Kentucky Fried Chicken, Pizza Hut, Burger King, and Starbucks restaurants on the basis of franchise and joint venture partnerships. The company also operates its own restaurant under the La Tagliatella brand name, as well as Blue Frog and KABB brand names. In addition, it provides on-site catering services; take away services; drive-in services at special sales points; and deliveries for orders placed online or by telephone. As of November 15, 2018, it operated 2,015 restaurants. The company was founded in 1993 and is headquartered in Wroclaw, Poland. AmRest Holdings SE (WSE : EAT) operates as a subsidiary of Fcapital Dutch B.V.
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