DB:IHP

Stock Analysis Report

Executive Summary

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally.

Rewards

Trading at 4% below its fair value

Earnings are forecast to grow 4.48% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (11.2%) are lower than last year (16.3%)



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Dine Brands Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

IHP

5.4%

DE Hospitality

1.7%

DE Market


1 Year Return

11.2%

IHP

11.0%

DE Hospitality

15.0%

DE Market

Return vs Industry: IHP matched the German Hospitality industry which returned 11% over the past year.

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


Shareholder returns

IHPIndustryMarket
7 Day3.7%5.4%1.7%
30 Day9.0%3.4%1.4%
90 Day21.6%-9.6%3.3%
1 Year14.9%11.2%15.8%11.0%18.5%15.0%
3 Year72.3%48.5%-4.5%-17.6%17.1%6.9%
5 Year9.8%-12.8%-7.0%-26.6%24.3%7.3%

Price Volatility Vs. Market

How volatile is Dine Brands Global's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dine Brands Global undervalued compared to its fair value and its price relative to the market?

4.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IHP (€84.5) is trading below our estimate of fair value (€88.02)

Significantly Below Fair Value: IHP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IHP is good value based on its PE Ratio (15.8x) compared to the Hospitality industry average (23.8x).

PE vs Market: IHP is good value based on its PE Ratio (15.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: IHP is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: IHP has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Dine Brands Global forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHP's forecast earnings growth (4.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: IHP's earnings (4.5% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: IHP's revenue (1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: IHP's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IHP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dine Brands Global performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHP has high quality earnings.

Growing Profit Margin: IHP's current net profit margins (11.2%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: IHP's earnings have declined by -17.4% per year over the past 5 years.

Accelerating Growth: IHP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IHP had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: IHP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dine Brands Global's financial position?


Financial Position Analysis

Short Term Liabilities: IHP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IHP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IHP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IHP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: IHP's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: IHP's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: IHP has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Dine Brands Global's current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.3%markettop25%3.6%industryaverage5.1%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: IHP's dividend (3%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: IHP's dividend (3%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: IHP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IHP has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.2%), IHP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IHP's dividends in 3 years are forecast to be well covered by earnings (34.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Steve Joyce (59yo)

2.4yrs

Tenure

US$2,570,703

Compensation

Mr. Stephen P. Joyce, also known as Steve, has been the Chief Executive Officer of Dine Brands Global, Inc. (Also known as DineEquity, Inc.) since September 12, 2017. Mr. Joyce is a Director of Cooperative ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.57M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Joyce
CEO & Director2.4yrsUS$2.57m0.055% $788.6k
Thomas Song
CFO & Principal Accounting Officer1.8yrsUS$2.88m0.10% $1.5m
Bryan Adel
Senior VP of Legal9.5yrsUS$1.76m0.080% $1.1m
John Cywinski
President of Applebee’s Business Unit2.9yrsUS$4.38m0.22% $3.1m
Adrian Butler
Chief Information Officer & Senior VP4.3yrsno datano data
Ken Diptee
Executive Director of Investor Relations0yrsno datano data
Gregory R. Bever
Senior VP & Chief People Officer1.9yrsno datano data
Charles Scaccia
Senior Vice President of Operations0.7yrsno datano data
Jay Johns
President of IHOP0.7yrsno data0.12% $1.7m
Thien Ho
Executive Director of Communications0yrsno datano data

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: IHP's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Joyce
CEO & Director2.4yrsUS$2.57m0.055% $788.6k
Daniel Brestle
Independent Director10.6yrsUS$197.56k0.11% $1.6m
Richard Dahl
Independent Chairman2.9yrsUS$315.56k0.15% $2.1m
Douglas Pasquale
Independent Director6.9yrsUS$205.56k0.038% $547.1k
Gilbert Ray
Independent Director15.2yrsUS$190.56k0.050% $709.4k
Larry Kay
Independent Director32.8yrsUS$182.56k0.11% $1.6m
Caroline Nahas
Independent Director28.1yrsUS$200.06k0.16% $2.3m
Susan Collyns
Independent Director0.5yrsno datano data
Howard Berk
Independent Director11yrsUS$200.56k0.14% $2.1m
Lilian Tomovich
Independent Director3.1yrsUS$182.56k0.0094% $134.0k

9.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: IHP's board of directors are considered experienced (9.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dine Brands Global, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dine Brands Global, Inc.
  • Ticker: IHP
  • Exchange: DB
  • Founded: 1958
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$1.546b
  • Listing Market Cap: US$1.426b
  • Shares outstanding: 16.79m
  • Website: https://www.dinebrands.com

Number of Employees


Location

  • Dine Brands Global, Inc.
  • 450 North Brand Boulevard
  • Glendale
  • California
  • 91203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DINNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1991
IHPDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1991

Biography

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates in five segments: Applebee's Franchise Operations, IHOP Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar (Applebee's) in the bar and grill segment of the casual dining category; and International House of Pancakes (IHOP) in the family dining category of the restaurant industry. Its Applebee’s restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2018, the company had 1,768 Applebee's franchised restaurants, and 1,831 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 676 IHOP franchised restaurants and 1 Applebee’s franchised restaurant; and the financing of franchise fees and equipment leases. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is based in Glendale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 22:09
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.