DB:SR6

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Soup Restaurant Group

Executive Summary

Soup Restaurant Group Limited, an investment holding company, operates restaurants.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SR6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

SR6

8.1%

DE Hospitality

2.2%

DE Market


1 Year Return

-46.4%

SR6

-43.8%

DE Hospitality

-3.9%

DE Market

Return vs Industry: SR6 underperformed the German Hospitality industry which returned -44.1% over the past year.

Return vs Market: SR6 underperformed the German Market which returned -4.6% over the past year.


Shareholder returns

SR6IndustryMarket
7 Day1.0%8.1%2.2%
30 Day0%7.6%8.0%
90 Day-36.2%-46.7%-9.6%
1 Year-45.0%-46.4%-41.8%-43.8%-2.3%-3.9%
3 Year-41.0%-46.9%-58.1%-63.7%-7.6%-14.8%
5 Year-49.3%-56.7%-58.3%-67.0%-0.3%-12.9%

Price Volatility Vs. Market

How volatile is Soup 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 Soup Restaurant Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SR6 (€0.05) is trading below our estimate of fair value (€0.8)

Significantly Below Fair Value: SR6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SR6 is poor value based on its PE Ratio (40.4x) compared to the Hospitality industry average (21.5x).

PE vs Market: SR6 is poor value based on its PE Ratio (40.4x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SR6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SR6 is overvalued based on its PB Ratio (3.1x) compared to the DE Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Soup Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

96.2%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Soup Restaurant Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SR6 has a large one-off loss of SGD287.0K impacting its December 31 2019 financial results.

Growing Profit Margin: SR6's current net profit margins (1.8%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SR6's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: SR6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SR6 had negative earnings growth (-65.3%) over the past year, making it difficult to compare to the Hospitality industry average (-36.2%).


Return on Equity

High ROE: SR6's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Soup Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: SR6's short term assets (SGD12.5M) exceed its short term liabilities (SGD11.9M).

Long Term Liabilities: SR6's short term assets (SGD12.5M) exceed its long term liabilities (SGD7.3M).


Debt to Equity History and Analysis

Debt Level: SR6 is debt free.

Reducing Debt: SR6 has not had any debt for past 5 years.

Debt Coverage: SR6 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SR6 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SR6's dividend (1.82%) is higher than the bottom 25% of dividend payers in the German market (1.36%).

High Dividend: SR6's dividend (1.82%) is low compared to the top 25% of dividend payers in the German market (4.18%).


Stability and Growth of Payments

Stable Dividend: SR6's dividend payments have been volatile in the past 10 years.

Growing Dividend: SR6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.5%), SR6's dividend payments are 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

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

11.0yrs

Average board tenure


CEO

Wei Teck Wong (62yo)

4yrs

Tenure

S$338,000

Compensation

Mr. Wong Wei Teck co- founded Soup Restaurant Group Limited in 1991 and has been its Managing Director since May 1, 2016 and an Executive Director since July 20,1991. Mr. Wong serves as an Executive Direct ...


CEO Compensation Analysis

Compensation vs Market: Wei Teck's total compensation ($USD237.17K) is below average for companies of similar size in the German market ($USD422.73K).

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


Board Members

NamePositionTenureCompensationOwnership
Wei Teck Wong
Co-Founder4yrsS$338.00k14.85% SGD2.9m
Chi Keong Wong
Co-Founder & Executive Director8.92yrsS$282.00k17.57% SGD3.5m
Khek Koon Then
Executive Director15.67yrsS$314.00k10.36% SGD2.1m
Tao Soon Cham
Independent Non-Executive Chairman7.75yrsS$80.00k0.18% SGD35.4k
Choon Seng Tan
Director1.08yrsS$30.00k0.024% SGD4.8k
Koh Ming Chua
Independent Director13.17yrsS$40.00k0.11% SGD21.3k

11.0yrs

Average Tenure

64yo

Average Age

Experienced Board: SR6's board of directors are seasoned and experienced ( 11 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Soup Restaurant Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Soup Restaurant Group Limited
  • Ticker: SR6
  • Exchange: DB
  • Founded: 1991
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: S$30.726m
  • Listing Market Cap: S$19.792m
  • Shares outstanding: 279.33m
  • Website: https://www.souprestaurant.com.sg

Number of Employees


Location

  • Soup Restaurant Group Limited
  • KA Centre
  • No. 04-01, 150 Kampong Ampat
  • Singapore
  • 368324
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5KISGX (Singapore Exchange)YesOrdinary SharesSGSGDMay 2007
SR6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007

Biography

Soup Restaurant Group Limited, an investment holding company, operates restaurants. The company operates 19 restaurant outlets in Singapore and Malaysia under Soup Restaurant, CAFE O, and POT LUCK brands, as well as 2 franchised outlets in Indonesia. It also sources, supplies, processes, and distributes raw materials and food products, as well as provides procurement services; and offers job training and vocational rehabilitation services. The company was founded in 1991 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 21:51
End of Day Share Price2020/05/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.