DB:3MK

Stock Analysis Report

Executive Summary

MK Restaurant Group Public Company Limited, together with its subsidiaries, sells foods and beverages through restaurants under the MK Restaurants trademark in Thailand.

Rewards

Earnings are forecast to grow 7.43% per year

Earnings grew by 1.6% over the past year

Risk Analysis

Dividend of 3.78% is not well covered by earnings or forecast to be in the next 3 years



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

3MK

5.4%

DE Hospitality

1.7%

DE Market


1 Year Return

-4.3%

3MK

11.0%

DE Hospitality

15.0%

DE Market

Return vs Industry: 3MK underperformed the German Hospitality industry which returned 11% over the past year.

Return vs Market: 3MK underperformed the German Market which returned 15% over the past year.


Shareholder returns

3MKIndustryMarket
7 Day-1.0%5.4%1.7%
30 Day-2.9%3.5%0.8%
90 Day-7.3%-9.0%3.7%
1 Year-0.7%-4.3%15.8%11.0%18.5%15.0%
3 Year44.2%29.7%-4.5%-17.6%17.1%6.9%
5 Year54.9%29.6%-7.0%-26.6%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MK Restaurant Group undervalued compared to its fair value and its price relative to the market?

24.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3MK (€2.02) is trading above our estimate of fair value (€1.18)

Significantly Below Fair Value: 3MK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3MK is poor value based on its PE Ratio (24.9x) compared to the Hospitality industry average (23.8x).

PE vs Market: 3MK is poor value based on its PE Ratio (24.9x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3MK is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 3MK is overvalued based on its PB Ratio (4.6x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is MK Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3MK's forecast earnings growth (7.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3MK's earnings (7.4% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: 3MK's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3MK's revenue (6.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 3MK's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3MK's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has MK Restaurant Group performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3MK has high quality earnings.

Growing Profit Margin: 3MK's current net profit margins (14.6%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: 3MK's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: 3MK's earnings growth over the past year (1.6%) is below its 5-year average (7.1% per year).

Earnings vs Industry: 3MK earnings growth over the past year (1.6%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: 3MK's Return on Equity (18.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MK Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3MK's short term assets (฿9.7B) exceed its short term liabilities (฿1.9B).

Long Term Liabilities: 3MK's short term assets (฿9.7B) exceed its long term liabilities (฿556.9M).


Debt to Equity History and Analysis

Debt Level: 3MK is debt free.

Reducing Debt: 3MK had no debt 5 years ago.

Debt Coverage: 3MK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3MK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3MK has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3MK's debt is covered by short term assets.


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.3%markettop25%3.6%industryaverage5.1%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: 3MK's dividend (3.78%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 3MK's dividend (3.78%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3MK has been paying a dividend for less than 10 years.

Growing Dividend: 3MK's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94%), 3MK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3MK's dividends in 3 years are not forecast to be well covered by earnings (91.7% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Rit Thirakomen (67yo)

8.1yrs

Tenure

0

Mr. Rit Thirakomen has been the Chief Executive Officer of MK Restaurant Group Public Company Limited since 2012 and has been its Chairman since 2012. Mr. Thirakomen served as President and Acting Executiv ...


Leadership Team

NamePositionTenureCompensationOwnership
Rit Thirakomen
Chairman & CEO8.1yrsno data13.36% ฿250.0m
Sudarut Patvivatsiri
Senior VP of Accounting & Finance Division and Corporate Secretary3.1yrsno data0.096% ฿1.8m
Somchai Hanjitkasem
Executive VP & Director31.1yrsno data33.84% ฿633.0m
Yupin Thirakomen
Executive Vice President5.1yrsno data19.81% ฿370.6m
Kiatkong Kungwanwong
Senior Vice President of Development & Maintenance Division3.1yrsno data0.047% ฿873.5k

5.1yrs

Average Tenure

58yo

Average Age

Experienced Management: 3MK's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rit Thirakomen
Chairman & CEO8.1yrsno data13.36% ฿250.0m
Somchai Hanjitkasem
Executive VP & Director31.1yrsno data33.84% ฿633.0m
Vilai Chattanrassamee
Independent Director7.7yrs฿1.11mno data
Thanong Chotisorayuth
Independent Director7.7yrs฿1.02m0.010% ฿186.7k
Katiya Greigarn
Independent Director7.7yrs฿1.06mno data
Annop Tanlamai
Independent Director7.7yrs฿1.13mno data
Attapon Chodchoy
Independent Director7.7yrs฿1.14mno data
Sujint Chumpolkanjana
Independent Director7.7yrs฿1.02m0.78% ฿14.6m
Somchai Pipitvijitkorn
Director7.7yrs฿1.05m0.40% ฿7.5m
Pravit Tantiwasinchai
Director7.7yrs฿1.02m0.42% ฿7.8m

7.7yrs

Average Tenure

66yo

Average Age

Experienced Board: 3MK's board of directors are considered experienced (7.7 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.


Top Shareholders

Company Information

MK Restaurant Group Public Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MK Restaurant Group Public Company Limited
  • Ticker: 3MK
  • Exchange: DB
  • Founded: 1962
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: ฿63.310b
  • Listing Market Cap: ฿1.871b
  • Shares outstanding: 920.88m
  • Website: https://www.mkrestaurant.com

Location

  • MK Restaurant Group Public Company Limited
  • 1200 Debaratna Road
  • Bangnatai
  • Bangkok
  • 10260
  • Thailand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSET (The Stock Exchange of Thailand)YesOrdinary SharesTHTHBAug 2013
M-FTHAMSE (Bangkok-Alien Market Stock Exchange)THB1(ALIEN MKT)THTHBAug 2013
M-RSET (The Stock Exchange of Thailand)THB1(NVDR)THTHBAug 2013
3MKDB (Deutsche Boerse AG)THB1(ALIEN MKT)DEEURAug 2013

Biography

MK Restaurant Group Public Company Limited, together with its subsidiaries, sells foods and beverages through restaurants under the MK Restaurants trademark in Thailand. The company operates through two segments, Restaurant Business and Other Businesses. It also provides training services; and manufactures and distributes foods. As of December 31, 2018, the company operated 490 branches. The company was formerly known as MK Restaurant Company Limited and changed its name to MK Restaurant Group Public Company Limited in August 2012. MK Restaurant Group Public Company Limited was founded in 1962 and is headquartered in Bangkok, Thailand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:03
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.