DB:SKX

Stock Analysis Report

Executive Summary

Skylark Holdings Co., Ltd. operates restaurants in Japan and internationally.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has Skylark Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

SKX

0.5%

DE Hospitality

1.0%

DE Market


1 Year Return

17.2%

SKX

-7.9%

DE Hospitality

15.7%

DE Market

Return vs Industry: SKX exceeded the German Hospitality industry which returned -7.9% over the past year.

Return vs Market: SKX exceeded the German Market which returned 15.7% over the past year.


Shareholder returns

SKXIndustryMarket
7 Day-2.8%0.5%1.0%
30 Day4.8%-2.5%1.0%
90 Day10.0%15.1%6.7%
1 Year19.2%17.2%-1.6%-7.9%19.3%15.7%
3 Year45.2%36.1%0.9%-12.7%19.5%8.9%
5 Year134.6%107.8%9.1%-11.9%36.9%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Skylark Holdings undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKX (€17.4) is trading below our estimate of fair value (€28.49)

Significantly Below Fair Value: SKX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKX is poor value based on its PE Ratio (34.7x) compared to the Hospitality industry average (30.2x).

PE vs Market: SKX is poor value based on its PE Ratio (34.7x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: SKX is poor value based on its PEG Ratio (17.1x)


Price to Book Ratio

PB vs Industry: SKX is overvalued based on its PB Ratio (3.2x) compared to the DE Hospitality industry average (2.5x).


Next Steps

Future Growth

How is Skylark Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (2% per year) is above the savings rate (-0.4%).

Earnings vs Market: SKX's earnings (2% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: SKX's revenue (1.4% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: SKX's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKX's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Skylark Holdings performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKX has high quality earnings.

Growing Profit Margin: SKX's current net profit margins (3.3%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 2% per year over the past 5 years.

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

Earnings vs Industry: SKX had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Hospitality industry average (-34.8%).


Return on Equity

High ROE: SKX's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skylark Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SKX's short term assets (¥32.7B) do not cover its short term liabilities (¥86.7B).

Long Term Liabilities: SKX's short term assets (¥32.7B) do not cover its long term liabilities (¥226.1B).


Debt to Equity History and Analysis

Debt Level: SKX's debt to equity ratio (93.6%) is considered high.

Reducing Debt: SKX's debt to equity ratio has reduced from 172.1% to 93.6% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (45.7%).

Interest Coverage: SKX's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: SKX's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Skylark Holdings's current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Skylark Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.9%marketbottom25%1.3%markettop25%3.6%industryaverage4.8%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: SKX's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: SKX's dividend (0.87%) is low compared to the top 25% of dividend payers in the German market (3.55%).


Stability and Growth of Payments

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

Growing Dividend: SKX has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), SKX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Makoto Tani (68yo)

11.3yrs

Tenure

JP¥382,000,000

Compensation

Mr. Makoto Tani has been the Chief Executive Officer at Skylark Co., Ltd since August 2008. Mr. Tani has been the President of Skylark Co., Ltd. since August 18, 2008. Mr. Tani has been a Director of Skyl ...


CEO Compensation Analysis

Compensation vs Market: Makoto's total compensation ($USD3.50M) is above average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Makoto's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.9yrs

Average Tenure

Experienced Management: SKX's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

68yo

Average Age

Experienced Board: SKX's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Minoru Himeno

    Executive Officer & MD of Supply Chain Purchasing Division

    • Tenure: 8.9yrs
  • Toshiaki Aihara

    Executive Officer & MD of Supply Chain Production Division

    • Tenure: 7.9yrs
  • Makoto Tani (68yo)

    Chairman

    • Tenure: 11.3yrs
    • Compensation: JP¥382.00m
  • Sumio Matsumoto

    Executive Officer

    • Tenure: 4.9yrs
  • Minoru Kanaya

    Managing Exec. Officer

    • Tenure: 1.8yrs
  • Shigeto Kadowaki

    Executive Officer & MD of Store Development Division

    • Tenure: 6.9yrs
  • Yukihiro Wada

    Managing Officer

    • Tenure: 1.4yrs
  • Haruyoshi Sakita

    Corporate Director

    • Tenure: 1.8yrs
  • Atsushi Kitamura

    Executive Officer

    • Tenure: 2.8yrs
  • Nobuyuki Katayama

    Executive Officer & Managing Director of Supply Chain Purchasing Division

    • Tenure: 0yrs

Board Members

  • Atsushi Nishijo (77yo)

    Independent Outside Director

    • Tenure: 5.8yrs
  • Makoto Tani (68yo)

    Chairman

    • Tenure: 11.3yrs
    • Compensation: JP¥382.00m
  • Makoto Suzuki (62yo)

    Corporate Auditor

    • Tenure: 8.8yrs
  • Fumio Tahara (71yo)

    Outside Director

    • Tenure: 1.8yrs
  • Atsushi Yokoyama (50yo)

    Outside Director

    • Tenure: 4.8yrs
  • Minoru Kanaya

    Managing Exec. Officer

    • Tenure: 1.8yrs
  • Yukihiro Wada

    Managing Officer

    • Tenure: 1.4yrs
  • Mitsuhiro Nagata

    Outside Corporate Auditor

    • Tenure: 3.7yrs
  • Haruyoshi Sakita

    Corporate Director

    • Tenure: 1.8yrs
  • Atsushi Kitamura

    Executive Officer

    • Tenure: 2.8yrs

Company Information

Skylark Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skylark Holdings Co., Ltd.
  • Ticker: SKX
  • Exchange: DB
  • Founded: 1962
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: JP¥428.975b
  • Listing Market Cap: JP¥3.531b
  • Shares outstanding: 197.50m
  • Website: https://www.skylark.co.jp

Number of Employees


Location

  • Skylark Holdings Co., Ltd.
  • 1-25-8 Nishikubo
  • Musashino-shi
  • Musashino
  • Tokyo
  • 180-8580
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3197TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 2014
SKXDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014
SKLY.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2014

Biography

Skylark Holdings Co., Ltd. operates restaurants in Japan and internationally. The company operates Western, Chinese, Japanese, Sushi, and Italian restaurants primarily under the Gusto, Bamiyan, Jonathan´s, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 22:34
End of Day Share Price2019/12/13 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.