DB:XCD

Stock Analysis Report

Café de Coral Holdings

Executive Summary

Café de Coral Holdings Limited, an investment holding company, operates quick service restaurants, and casual dining chains in Hong Kong and Mainland China.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

XCD

-14.7%

DE Hospitality

-6.8%

DE Market


1 Year Return

-10.5%

XCD

-9.7%

DE Hospitality

6.5%

DE Market

Return vs Industry: XCD matched the German Hospitality industry which returned -9.7% over the past year.

Return vs Market: XCD underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

XCDIndustryMarket
7 Day-2.9%-14.7%-6.8%
30 Day0%-10.6%-3.7%
90 Day-8.9%-27.5%-3.6%
1 Year-7.2%-10.5%-5.7%-9.7%9.8%6.5%
3 Year-25.0%-34.5%-22.9%-33.4%6.8%-2.6%
5 Year-21.5%-36.4%-22.8%-39.1%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Café de Coral Holdings undervalued compared to its fair value and its price relative to the market?

3.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XCD (€2.04) is trading below our estimate of fair value (€2.11)

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


Price To Earnings Ratio

PE vs Industry: XCD is good value based on its PE Ratio (19.9x) compared to the Hospitality industry average (25.2x).

PE vs Market: XCD is good value based on its PE Ratio (19.9x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: XCD is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: XCD is overvalued based on its PB Ratio (3.5x) compared to the DE Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Café de Coral Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XCD's forecast earnings growth (11.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: XCD's earnings (11.8% per year) are forecast to grow slower than the German market (13.1% per year).

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

Revenue vs Market: XCD's revenue (5.9% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: XCD's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XCD's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Café de Coral Holdings performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XCD has high quality earnings.

Growing Profit Margin: XCD's current net profit margins (6%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: XCD's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: XCD's earnings growth over the past year (6.3%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: XCD earnings growth over the past year (6.3%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: XCD's Return on Equity (17.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Café de Coral Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: XCD's short term assets (HK$1.1B) do not cover its short term liabilities (HK$1.7B).

Long Term Liabilities: XCD's short term assets (HK$1.1B) do not cover its long term liabilities (HK$2.0B).


Debt to Equity History and Analysis

Debt Level: XCD is debt free.

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

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

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


Balance Sheet

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

Debt Coverage by Assets: XCD's debt is not covered by short term assets (assets are -2.3552770519985E+15x debt).


Next Steps

Dividend

What is Café de Coral Holdings's current dividend yield, its reliability and sustainability?

4.79%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.5%markettop25%3.8%industryaverage6.3%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: XCD's dividend (4.79%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: XCD's dividend (4.79%) is in the top 25% of dividend payers in the German market (3.81%)


Stability and Growth of Payments

Stable Dividend: XCD's dividends per share have been stable in the past 10 years.

Growing Dividend: XCD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.3%), XCD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XCD's dividends in 3 years are not forecast to be well covered by earnings (90.5% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Peter Lo (57yo)

3.8yrs

Tenure

HK$12,010,000

Compensation

Mr. Tak-Shing Lo, also known as Peter, has been Chief Executive Officer of Café de Coral Holdings Limited since April 1, 2016 and served as its Deputy Chief Executive Officer from September 1, 2015 to Apri ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.54M) is about average for companies of similar size in the German market ($USD1.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tak-Shing Lo
CEO & Executive Director3.8yrsHK$12.01m15.92% HK$191.1m
Ming Shing Lo
Executive Director9.8yrsHK$4.03m0.016% HK$196.4k
Hung Chun Lim
Chief Financial Officer9.1yrsno datano data
Yang Bin
Group Managing Director of China0yrsno datano data
Ho Ting Leung
Group Managing Director of Quick Service Restaurants Group1yrsno datano data
Hung Lee
Company Secretary6.5yrsno datano data
Vera Leung
Company Secretary6.3yrsno datano data

6.3yrs

Average Tenure

49yo

Average Age

Experienced Management: XCD's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tak-Shing Lo
CEO & Executive Director3.8yrsHK$12.01m15.92% HK$191.1m
Ming Shing Lo
Executive Director9.8yrsHK$4.03m0.016% HK$196.4k
Lam Kwong Kwok
Independent Non Executive Director15.6yrsHK$300.00kno data
Yue Kwong Chan
Non-Executive Director32.1yrsHK$180.00k2.94% HK$35.2m
Tung Wah Hui
Non-Executive Director32.1yrsHK$180.00k0.0044% HK$53.4k
Pik Ling Lo
Non-Executive Director29.3yrsHK$5.67m2.94% HK$35.3m
Ngai Min Choi
Independent Non-Executive Director26yrsHK$300.00kno data
Hoi Kwong Lo
Chairman3.8yrsHK$1.06m11.11% HK$133.3m
Kwok-Sing Li
Independent Non-Executive Director25.3yrsHK$300.00k0.0095% HK$113.8k
Siu Cheung Au
Independent Non-Executive Director7.1yrsHK$300.00kno data

23.5yrs

Average Tenure

64yo

Average Age

Experienced Board: XCD's board of directors are seasoned and experienced ( 23.5 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

Café de Coral Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Café de Coral Holdings Limited
  • Ticker: XCD
  • Exchange: DB
  • Founded: 1968
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$10.173b
  • Listing Market Cap: HK$1.200b
  • Shares outstanding: 580.01m
  • Website: https://www.cafedecoral.com

Number of Employees


Location

  • Café de Coral Holdings Limited
  • Café de Coral Centre
  • 10th Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
341SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
XCDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
341SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
341SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
XCDBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJan 1992

Biography

Café de Coral Holdings Limited, an investment holding company, operates quick service restaurants, and casual dining chains in Hong Kong and Mainland China. It operates restaurants primarily under the Café de Coral, Super Super Congee & Noodles, Shanghai Lao Lao, Mixian Sense, The Spaghetti House, Oliver’s Super Sandwiches, 360 Series, Little Onion, THE CUP, Don Don Tei, and ZAKKA brands. As of March 31, 2019, the company operated 465 operating units. It also provides institutional catering services under the Asia Pacific Catering and Luncheon Star brands for universities, hospitals, government, and public and private institutions; and produces, distributes, and sells ham and sausage under the Viking Boat brand name. In addition, the company is involved in property investment, premises space leasing, and food trading and processing activities; and provision of royalty services. Café de Coral Holdings Limited was founded in 1968 and is headquartered in Shatin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:21
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.