LSE:0KJ7

Stock Analysis Report

Executive Summary

Ibersol, S.G.P.S., S.A., through its subsidiaries, operates a network of restaurant units in Portugal, Spain, Italy, and Angola.


Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.

Share Price & News

How has Ibersol S.G.P.S's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0KJ7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0KJ7

16.1%

GB Hospitality

8.6%

GB Market


1 Year Return

n/a

0KJ7

-16.8%

GB Hospitality

-19.4%

GB Market

Return vs Industry: Insufficient data to determine how 0KJ7 performed against the UK Hospitality industry.

Return vs Market: Insufficient data to determine how 0KJ7 performed against the UK Market.


Shareholder returns

0KJ7IndustryMarket
7 Day0%16.1%8.6%
30 Day0%-7.2%-3.5%
90 Dayn/a-27.2%-23.0%
1 Yearn/a-14.6%-16.8%-15.5%-19.4%
3 Yearn/a-8.9%-18.0%-8.8%-19.9%
5 Yearn/a7.2%-9.4%4.2%-19.0%

Price Volatility Vs. Market

How volatile is Ibersol S.G.P.S's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ibersol S.G.P.S undervalued compared to its fair value and its price relative to the market?

12.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0KJ7 (€8.28) is trading above our estimate of fair value (€2.7)

Significantly Below Fair Value: 0KJ7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0KJ7 is good value based on its PE Ratio (12.8x) compared to the Hospitality industry average (18.6x).

PE vs Market: 0KJ7 is good value based on its PE Ratio (12.8x) compared to the UK market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 0KJ7 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0KJ7 is good value based on its PB Ratio (0.7x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is Ibersol S.G.P.S forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0KJ7's forecast earnings growth (24.7% per year) is above the savings rate (0.5%).

Earnings vs Market: 0KJ7's earnings (24.7% per year) are forecast to grow faster than the UK market (15.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0KJ7's revenue (4.9% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: 0KJ7's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0KJ7's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Ibersol S.G.P.S performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0KJ7 has a large one-off loss of €3.7M impacting its September 30 2019 financial results.

Growing Profit Margin: 0KJ7's current net profit margins (2.5%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 0KJ7's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: 0KJ7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0KJ7 had negative earnings growth (-64.4%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: 0KJ7's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Ibersol S.G.P.S's financial position?


Financial Position Analysis

Short Term Liabilities: 0KJ7's short term assets (€98.0M) do not cover its short term liabilities (€175.6M).

Long Term Liabilities: 0KJ7's short term assets (€98.0M) do not cover its long term liabilities (€405.4M).


Debt to Equity History and Analysis

Debt Level: 0KJ7's debt to equity ratio (63.4%) is considered high.

Reducing Debt: 0KJ7's debt to equity ratio has increased from 30.3% to 63.4% over the past 5 years.

Debt Coverage: 0KJ7's debt is well covered by operating cash flow (69.8%).

Interest Coverage: 0KJ7's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Ibersol S.G.P.S's current dividend yield, its reliability and sustainability?

2.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0KJ7's dividend (2.15%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.51%).

High Dividend: 0KJ7's dividend (2.15%) is low compared to the top 25% of dividend payers in the UK market (6.87%).


Stability and Growth of Payments

Stable Dividend: 0KJ7's dividends per share have been stable in the past 10 years.

Growing Dividend: 0KJ7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.5%), 0KJ7's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0KJ7's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

António Carlos Vaz de Sousa

no data

Tenure

Dr. António Carlos Vaz Pinto de Sousa serves as Chairman and Chief Executive Officer at Ibersol SGPS, SA. Dr. de Sousa served as Deputy Chairman and Managing Partner of Ibersol SGPS, SA. He has been a Dire ...


Leadership Team

NamePositionTenureCompensationOwnership
António Carlos Vaz de Sousa
Chairman & CEOno datano data0.0078% 11.3k
António Alberto Guerra Teixeira
Executive Vice Chairman of the Boardno datano data0.0078% 11.3k
Deolinda Couto
Head of Financing & Management Controlno datano datano data
Manuel Oliveira
Administrative Manager18.08yrsno datano data
Teresa Santos
Legal Directorno datano datano data
João Falcão
Director of Marketing5.17yrsno datano data
Ana Barbosa
Human Resources Manager7.83yrsno datano data
Orquídea Tomé
Head of Purchasing & Logisticsno datano datano data
Jaime Roque
Head of Burger King - Portugalno datano datano data
Artur Junqueira
Head of Cateringno datano datano data

7.8yrs

Average Tenure

Experienced Management: 0KJ7's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
António Carlos Vaz de Sousa
Chairman & CEOno datano data0.0078% 11.3k
António Alberto Guerra Teixeira
Executive Vice Chairman of the Boardno datano data0.0078% 11.3k
Juan Carlos Vázquez-Dodero de Bonifaz
Non-Executive Director21.25yrsno datano data
Eduardo Moutinho Santos
Member of Fiscal Boardno datano datano data
Carlos Alves Lourenço
President of Fiscal Board2.92yrsno datano data
Maria José Lourenço da Fonseca
Vice President of Fiscal Board2.92yrsno datano data

2.9yrs

Average Tenure

Experienced Board: 0KJ7's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

Ibersol, S.G.P.S., S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ibersol, S.G.P.S., S.A.
  • Ticker: 0KJ7
  • Exchange: LSE
  • Founded: 1989
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: €144.828m
  • Shares outstanding: 32.40m
  • Website: https://www.ibersol.pt

Number of Employees


Location

  • Ibersol, S.G.P.S., S.A.
  • Edifício Península
  • Praça do Bom Sucesso, n.º 105 a 159 – 9.º andar
  • Porto
  • Norte
  • 4150-146
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBSENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURNov 1997
0KJ7LSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1997
IBSUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1997

Biography

Ibersol, S.G.P.S., S.A., through its subsidiaries, operates a network of restaurant units in Portugal, Spain, Italy, and Angola. The company operates restaurant units under various brands, including Pizza Hut, Pasta Caffé, Pans & Company, Ribs, FresCo, SantaMaria, Kentucky Fried Chicken, Burger King, O’ Kilo, Roulotte, Quiosques, Pizza Móvil, Miit, Sol, Sugestões e Opções, Silva Carvalho Catering e Palace Catering, travel, coffe counters, and other concessions contract. As of December 31, 2018, it operated 641 restaurants, which include 516 owned units and 125 franchised units. The company was founded in 1989 and is headquartered in Porto, Portugal. Ibersol, S.G.P.S., S.A. is a subsidiary of ATPS - SGPS, S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:30
End of Day Share Price2020/01/13 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.