ATSE:KARE

Stock Analysis Report

Executive Summary

Karelia Tobacco Company Inc. engages in the manufacture and wholesale of tobacco products in Greece.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Karelia Tobacco's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

KARE

-2.3%

GR Tobacco

0.8%

GR Market


1 Year Return

15.5%

KARE

3.9%

GR Tobacco

34.8%

GR Market

Return vs Industry: KARE exceeded the Greek Tobacco industry which returned 3.9% over the past year.

Return vs Market: KARE underperformed the Greek Market which returned 34.8% over the past year.


Shareholder returns

KAREIndustryMarket
7 Day0.7%-2.3%0.8%
30 Day1.4%-4.7%-1.1%
90 Day9.6%13.8%2.2%
1 Year19.6%15.5%12.1%3.9%40.7%34.8%
3 Year17.5%6.4%-24.6%-36.9%59.5%43.8%
5 Year62.8%36.7%8.2%-16.2%-59.7%-61.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Karelia Tobacco undervalued compared to its fair value and its price relative to the market?

10.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KARE (€298) is trading above our estimate of fair value (€86.81)

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


Price To Earnings Ratio

PE vs Industry: KARE is good value based on its PE Ratio (10.3x) compared to the Tobacco industry average (10.3x).

PE vs Market: KARE is good value based on its PE Ratio (10.3x) compared to the Greek market (17.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KARE is overvalued based on its PB Ratio (1.7x) compared to the XE Tobacco industry average (1.4x).


Next Steps

Future Growth

How is Karelia Tobacco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

Forecasted Food, Beverage & Tobacco 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 Karelia Tobacco 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 Karelia Tobacco performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KARE has high quality earnings.

Growing Profit Margin: KARE's current net profit margins (38.5%) are higher than last year (29.4%).


Past Earnings Growth Analysis

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

Accelerating Growth: KARE's earnings growth over the past year (28.6%) exceeds its 5-year average (5% per year).

Earnings vs Industry: KARE earnings growth over the past year (28.6%) exceeded the Tobacco industry -18.5%.


Return on Equity

High ROE: KARE's Return on Equity (16.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Karelia Tobacco's financial position?


Financial Position Analysis

Short Term Liabilities: KARE's short term assets (€543.3M) exceed its short term liabilities (€123.3M).

Long Term Liabilities: KARE's short term assets (€543.3M) exceed its long term liabilities (€11.8M).


Debt to Equity History and Analysis

Debt Level: KARE is debt free.

Reducing Debt: KARE had no debt 5 years ago.

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

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


Balance Sheet

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

Debt Coverage by Assets: KARE's debt is not covered by short term assets (assets are -4.8936834126946E+18x debt).


Next Steps

Dividend

What is Karelia Tobacco's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.7%markettop25%3.6%industryaverage7.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KARE's dividend (3.19%) is higher than the bottom 25% of dividend payers in the Greek market (1.71%).

High Dividend: KARE's dividend (3.19%) is low compared to the top 25% of dividend payers in the Greek market (3.62%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), KARE'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

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


CEO

Andreas Karelias 0

0

Mr. Andreas G. Karelias serves as Managing Director and an Executive Member of the Board of Directors at Karelia Tobacco Company Inc (alternate name Karelia Tobacco Company Inc SA) and served as its Chief  ...


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

Karelia Tobacco Company Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Karelia Tobacco Company Inc.
  • Ticker: KARE
  • Exchange: ATSE
  • Founded: 1888
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €822.480m
  • Shares outstanding: 2.76m
  • Website: https://www.karelia.gr

Number of Employees


Location

  • Karelia Tobacco Company Inc.
  • Athinon Street
  • Kalamata
  • 241 00
  • Greece

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KAREATSE (The Athens Stock Exchange)YesCommon SharesGREURJan 1992
A2PW6UDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992

Biography

Karelia Tobacco Company Inc. engages in the manufacture and wholesale of tobacco products in Greece. The company provides cigarettes, cigars, hand rolling cigarettes, and other duty free tobacco products under the George Karelias and Sons, Omé, Karelia Slims, Karelia Blue, Oriental Mist, American Legend, Leader, Karelia Royal, and Wellington brand names. It also exports its products to approximately 65 countries worldwide. The company was founded in 1888 and is based in Kalamata, Greece. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:47
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.