Loading...

Fairwood Holdings

SEHK:52
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
52
SEHK
HK$3B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

Fairwood Holdings Limited, an investment holding company, engages in the operation of fast food restaurants. The last earnings update was 143 days ago. More info.


Add to Portfolio Compare Print
52 Share Price and Events
7 Day Returns
-3.2%
SEHK:52
-5.4%
HK Hospitality
-2.5%
HK Market
1 Year Returns
-14.7%
SEHK:52
-20.9%
HK Hospitality
-15.9%
HK Market
52 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fairwood Holdings (52) -3.2% -4.6% -4.6% -14.7% -1.3% 60.9%
HK Hospitality -5.4% -9.7% 3% -20.9% 34.6% -33.5%
HK Market -2.5% -8.6% -3.6% -15.9% 25.4% 7.8%
1 Year Return vs Industry and Market
  • 52 outperformed the Hospitality industry which returned -20.9% over the past year.
  • 52 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
52
Industry
5yr Volatility vs Market

Value

 Is Fairwood Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fairwood Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fairwood Holdings.

SEHK:52 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:52
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 25%) (0.03%))
0.954
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.954 * 6.65%)
8.35%

Discounted Cash Flow Calculation for SEHK:52 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fairwood Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:52 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.35%)
2019 234.00 Analyst x1 215.97
2020 273.00 Analyst x1 232.55
2021 330.00 Analyst x1 259.44
2022 375.68 Est @ 13.84% 272.60
2023 414.35 Est @ 10.29% 277.49
2024 446.69 Est @ 7.8% 276.09
2025 473.77 Est @ 6.06% 270.27
2026 496.73 Est @ 4.85% 261.53
2027 516.57 Est @ 3.99% 251.02
2028 534.11 Est @ 3.4% 239.54
Present value of next 10 years cash flows HK$2,556.50
SEHK:52 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$534.11 × (1 + 2%) ÷ (8.35% – 2%)
HK$8,585.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$8,585.13 ÷ (1 + 8.35%)10
HK$3,850.35
SEHK:52 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$2,556.50 + HK$3,850.35
HK$6,406.85
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$6,406.85 / 128.81
HK$49.74
SEHK:52 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$49.74
Current discount Discount to share price of HK$25.90
= -1 x (HK$25.90 - HK$49.74) / HK$49.74
47.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fairwood Holdings is available for.
Intrinsic value
48%
Share price is HK$25.9 vs Future cash flow value of HK$49.74
Current Discount Checks
For Fairwood Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fairwood Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fairwood Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fairwood Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fairwood Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:52 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in HKD HK$1.56
SEHK:52 Share Price ** SEHK (2019-05-20) in HKD HK$25.9
Hong Kong Hospitality Industry PE Ratio Median Figure of 64 Publicly-Listed Hospitality Companies 13.89x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 11.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fairwood Holdings.

SEHK:52 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:52 Share Price ÷ EPS (both in HKD)

= 25.9 ÷ 1.56

16.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairwood Holdings is overvalued based on earnings compared to the HK Hospitality industry average.
  • Fairwood Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Fairwood Holdings's expected growth come at a high price?
Raw Data
SEHK:52 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
8.1%per year
Hong Kong Hospitality Industry PEG Ratio Median Figure of 19 Publicly-Listed Hospitality Companies 1.83x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:52 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.62x ÷ 8.1%

2.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairwood Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fairwood Holdings's assets?
Raw Data
SEHK:52 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in HKD HK$5.80
SEHK:52 Share Price * SEHK (2019-05-20) in HKD HK$25.9
Hong Kong Hospitality Industry PB Ratio Median Figure of 104 Publicly-Listed Hospitality Companies 1.06x
Hong Kong Market PB Ratio Median Figure of 2,155 Publicly-Listed Companies 0.97x
SEHK:52 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:52 Share Price ÷ Book Value per Share (both in HKD)

= 25.9 ÷ 5.80

4.47x

* Primary Listing of Fairwood Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairwood Holdings is overvalued based on assets compared to the HK Hospitality industry average.
X
Value checks
We assess Fairwood Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Fairwood Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Fairwood Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fairwood Holdings expected to grow at an attractive rate?
  • Fairwood Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Fairwood Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Fairwood Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:52 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:52 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 8.1%
SEHK:52 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 10.1%
Hong Kong Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
Hong Kong Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:52 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:52 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 3,747 425 242 2
2020-03-31 3,393 372 222 2
2019-03-31 3,085 343 202 2
SEHK:52 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-09-30 2,908 308 200
2018-06-30 2,874 330 208
2018-03-31 2,841 351 216
2017-12-31 2,785 339 217
2017-09-30 2,730 327 219
2017-06-30 2,655 298 212
2017-03-31 2,581 270 205
2016-12-31 2,545 280 204
2016-09-30 2,508 290 203
2016-06-30 2,468 314 202
2016-03-31 2,428 337 201
2015-12-31 2,360 312 186

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fairwood Holdings's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Fairwood Holdings's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:52 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Fairwood Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:52 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 1.87 1.87 1.87 1.00
2020-03-31 1.72 1.72 1.72 1.00
2019-03-31 1.57 1.57 1.57 1.00
SEHK:52 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-09-30 1.56
2018-06-30 1.62
2018-03-31 1.69
2017-12-31 1.70
2017-09-30 1.71
2017-06-30 1.66
2017-03-31 1.61
2016-12-31 1.61
2016-09-30 1.60
2016-06-30 1.59
2016-03-31 1.59
2015-12-31 1.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Fairwood Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Fairwood Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fairwood Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Fairwood Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fairwood Holdings's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fairwood Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Fairwood Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fairwood Holdings's 1-year earnings growth is negative, it can't be compared to the HK Hospitality industry average.
Earnings and Revenue History
Fairwood Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fairwood Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:52 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 2,907.84 199.65 164.37
2018-06-30 2,874.20 207.86 164.77
2018-03-31 2,840.57 216.08 165.17
2017-12-31 2,785.30 217.31 160.04
2017-09-30 2,730.03 218.54 154.90
2017-06-30 2,655.47 211.91 150.44
2017-03-31 2,580.90 205.28 145.99
2016-12-31 2,544.68 203.97 143.94
2016-09-30 2,508.45 202.66 141.89
2016-06-30 2,468.21 201.72 143.68
2016-03-31 2,427.97 200.78 145.46
2015-12-31 2,360.11 185.69 145.19
2015-09-30 2,292.24 170.61 144.92
2015-06-30 2,268.56 157.29 142.51
2015-03-31 2,244.89 143.97 140.09
2014-12-31 2,199.21 129.86 134.56
2014-09-30 2,153.53 115.75 129.03
2014-06-30 2,095.62 111.68 124.56
2014-03-31 2,037.72 107.61 120.09
2013-12-31 2,003.57 125.12 120.66
2013-09-30 1,969.43 142.63 121.23
2013-06-30 1,949.34 141.05 122.32
2013-03-31 1,929.24 139.47 123.40
2012-12-31 1,910.75 137.90 120.25
2012-09-30 1,892.26 136.34 117.10
2012-06-30 1,860.86 133.36 115.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fairwood Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Fairwood Holdings used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.
  • Fairwood Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fairwood Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fairwood Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fairwood Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fairwood Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fairwood Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fairwood Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fairwood Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 683.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fairwood Holdings Company Filings, last reported 7 months ago.

SEHK:52 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 744.75 1.15 642.03
2018-06-30 744.75 1.15 642.03
2018-03-31 763.11 1.86 520.60
2017-12-31 763.11 1.86 520.60
2017-09-30 711.69 2.72 619.50
2017-06-30 711.69 2.72 619.50
2017-03-31 715.29 3.58 502.98
2016-12-31 715.29 3.58 502.98
2016-09-30 664.11 4.44 618.88
2016-06-30 664.11 4.44 618.88
2016-03-31 676.34 6.65 548.61
2015-12-31 676.34 6.65 548.61
2015-09-30 632.97 8.87 581.62
2015-06-30 632.97 8.87 581.62
2015-03-31 600.16 11.10 419.02
2014-12-31 600.16 11.10 419.02
2014-09-30 568.25 13.34 432.67
2014-06-30 568.25 13.34 432.67
2014-03-31 535.26 21.17 333.45
2013-12-31 535.26 21.17 333.45
2013-09-30 525.07 23.86 382.30
2013-06-30 525.07 23.86 382.30
2013-03-31 519.70 26.60 290.99
2012-12-31 519.70 26.60 290.99
2012-09-30 470.67 29.31 342.61
2012-06-30 470.67 29.31 342.61
  • Fairwood Holdings's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (4.5% vs 0.2% today).
  • Debt is well covered by operating cash flow (26833.9%, greater than 20% of total debt).
  • Fairwood Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Fairwood Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fairwood Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.48%
Current annual income from Fairwood Holdings dividends. Estimated to be 5.81% next year.
If you bought HK$2,000 of Fairwood Holdings shares you are expected to receive HK$110 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Fairwood Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Fairwood Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:52 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Hong Kong Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:52 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 1.55 2.00
2020-03-31 1.46 2.00
2019-03-31 1.43 2.00
SEHK:52 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2018-11-27 1.420 5.281
2018-07-30 1.420 5.092
2018-06-27 1.420 4.792
2017-07-28 0.920 2.918
2016-07-28 0.860 2.637
2016-06-29 0.860 2.562
2015-07-30 0.800 3.308
2015-06-23 0.800 3.455
2014-11-28 0.670 3.297
2014-07-28 0.620 3.579
2014-06-26 0.620 3.809
2013-07-26 0.720 4.501
2013-06-26 0.720 4.450
2012-12-19 1.010 6.039
2012-06-27 1.000 6.325
2011-11-29 0.540 4.648
2011-06-29 0.520 4.853
2010-11-25 0.480 4.384
2010-07-09 0.460 5.130
2009-11-30 0.460 5.779
2009-07-24 0.380 5.688
2009-07-10 0.560 8.039

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Fairwood Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Fairwood Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fairwood Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fairwood Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chee Shing Chan
COMPENSATION HK$6,913,000
AGE 64
TENURE AS CEO 10.3 years
CEO Bio

Mr. Chan Chee Shing has been the Chief Executive Officer of Fairwood Holdings Ltd. since January 01, 2009. Mr. Chan joined Fairwood in 1995. He has over 28 years' experience in marketing. Before joining Fairwood, he was a senior executive of a restaurant group which is listed on The Stock Exchange of Hong Kong Limited. He has been Executive Director of Fairwood Holdings Limited since January 1998. He received a Bachelor of Arts Degree in Economics from the University of Manitoba, Canada in 1977 and an Master of Business Administration Degree from the University of East Asia, Macau in 1987.

CEO Compensation
  • Chee Shing's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chee Shing's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Fairwood Holdings management team in years:

9.3
Average Tenure
51
Average Age
  • The average tenure for the Fairwood Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dennis Lo

TITLE
Executive Chairman
COMPENSATION
HK$12M
AGE
66

Chee Shing Chan

TITLE
CEO & Executive Director
COMPENSATION
HK$7M
AGE
64
TENURE
10.3 yrs

Peggy Lee

TITLE
Chief Marketing Officer & Executive Director
COMPENSATION
HK$2M
AGE
47
TENURE
3.6 yrs

Yee Mei Mak

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$4M
AGE
51
TENURE
9.3 yrs

Francis Lo

TITLE
Executive Director
AGE
35
Board of Directors Tenure

Average tenure and age of the Fairwood Holdings board of directors in years:

14.6
Average Tenure
64.5
Average Age
  • The average tenure for the Fairwood Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Dennis Lo

TITLE
Executive Chairman
COMPENSATION
HK$12M
AGE
66
TENURE
19.3 yrs

Chee Shing Chan

TITLE
CEO & Executive Director
COMPENSATION
HK$7M
AGE
64
TENURE
21.3 yrs

Peggy Lee

TITLE
Chief Marketing Officer & Executive Director
COMPENSATION
HK$2M
AGE
47
TENURE
1.3 yrs

Yee Mei Mak

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$4M
AGE
51
TENURE
9.3 yrs

Francis Lo

TITLE
Executive Director
AGE
35
TENURE
0.3 yrs

Joseph Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$190K
AGE
70
TENURE
28.3 yrs

Peter Wan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
65
TENURE
9.7 yrs

Chi Keung Ng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$180K
AGE
69
TENURE
23.5 yrs

Tony Tsoi

TITLE
Independent Non-Executive Director
COMPENSATION
HK$170K
AGE
53
TENURE
10.5 yrs

Peter Lau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$170K
AGE
65
TENURE
18.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Fairwood Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fairwood Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Fairwood Holdings Limited’s (HKG:52) Return On Capital Employed Is Impressive

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

A Closer Look At Fairwood Holdings Limited's (HKG:52) Impressive ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Fairwood Holdings Limited (HKG:52). … Our data shows Fairwood Holdings has a return on equity of 27% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

With 5.3% Earnings Growth, Did Fairwood Holdings Limited (HKG:52) Outperform The Industry?

When Fairwood Holdings Limited (HKG:52) announced its most recent earnings (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … 52's trailing twelve-month earnings (from 31 March 2018) of HK$216m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which 52 is growing has slowed down

Simply Wall St -

Why Fairwood Holdings Limited’s (HKG:52) Cash Is A Factor You Need To Consider

Today we will examine Fairwood Holdings’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Fairwood Holdings’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Fairwood Holdings’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Fairwood Holdings Limited (HKG:52) Has Attractive Fundamentals, Here's Why

Fairwood Holdings Limited (HKG:52) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … For those interested in understanding where the figures come from and want to see the analysis,

Simply Wall St -

Does Fairwood Holdings Limited's (HKG:52) CEO Pay Matter?

Chee Shing Chan took the helm as Fairwood Holdings Limited's (HKG:52) CEO and grew market cap to HK$3.80b recently. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Is Fairwood Holdings Limited (HKG:52) A Great Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the past 10 years Fairwood Holdings Limited (HKG:52) has returned an average of 5.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether Fairwood Holdings should have a place in your portfolio.

Simply Wall St -

Fairwood Holdings Limited (HKG:52): What Is Driving Margins?

Fairwood Holdings Limited (HKG:52) to … earnings growth of 21.27% annualised … over the couple of years ahead,

Simply Wall St -

Fairwood Holdings And Other Top Services Dividend Stocks

Fairwood Holdings Limited (SEHK:52) 52 has a decent dividend yield of 2.99% and distributes 55.40% of its earnings to shareholders as dividends , with the expected payout in three years being 82.80%. … SEHK:52 Historical Dividend Yield May 27th 18 Datang Environment Industry Group Co., Ltd. … SEHK:341 Historical Dividend Yield May 27th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

Simply Wall St -

What Do Analysts Think About the future of Fairwood Holdings Limited's (HKG:52)?

To get some insight, this article will interpret Fairwood Holdings's margin performance so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for 52 Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 218.54 Million ÷ 2.73 Billion = 8.00% Fairwood Holdings's margin has expanded in the past five years, due to average net income growth of 10.69% outstripping a 7.21% average growth in revenue, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Understanding what could be driving Fairwood Holdings's future earnings Forward looking projections suggest margins will further the previous expansion, with an expectation of 16.53% in annual revenue growth and 21.27% earnings growth expected annually.

Simply Wall St -

Company Info

Description

Fairwood Holdings Limited, an investment holding company, engages in the operation of fast food restaurants. The company operates in two segments, Hong Kong Restaurants and Mainland China Restaurants. As of March 31, 2018, it operated 145 stores in Hong Kong, which included 134 fast food stores and 11 specialty restaurants; and 10 stores in Mainland China. The company is also involved in the property investment and trademark holding activities. Fairwood Holdings Limited is headquartered in North Point, Hong Kong.

Details
Name: Fairwood Holdings Limited
52
Exchange: SEHK
Founded:
HK$3,387,670,914
128,808,780
Website: http://ssl.fairwood.com.hk/tch/promotions/promotions.jsp
Address: Fairwood Holdings Limited
TRP Commercial Centre,
2nd Floor,
North Point,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 52 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 06. Jan 1992
OTCPK FRWD.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1992
DB FWOA Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1992
Number of employees
Current staff
Staff numbers
5,600
Fairwood Holdings employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 12:43
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/10
Last earnings filing: 2018/12/28
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.