1957 (Hospitality) (SEHK:8495) - Share price, News & Analysis

8495 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

8495 Stock Overview

1957 & Co. (Hospitality) Limited, an investment holding company, operates full service restaurants in Hong Kong and the People’s Republic of China.

Rewards

Trading at 92.5% below our estimate of its fair value

Earnings have grown 33.6% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap (HK$196M)

1957 (Hospitality) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 1957 (Hospitality)
Historical stock prices
Current Share Price	HK$0.50
52 Week High	HK$0.54
52 Week Low	HK$0.17
Beta	0.0069
1 Month Change	19.05%
3 Month Change	61.29%
1 Year Change	160.42%
3 Year Change	51.52%
5 Year Change	n/a
Change since IPO	-9.09%

Recent News & Updates

May 31

We Think 1957 (Hospitality) (HKG:8495) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	8495	HK Hospitality	HK Market
7D	1.0%	-0.9%	1.2%
1Y	160.4%	-41.3%	-23.3%

Return vs Industry: 8495 exceeded the Hong Kong Hospitality industry which returned -41.3% over the past year.

Return vs Market: 8495 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 8495's price volatile compared to industry and market?
8495 volatility
8495 Average Weekly Movement	8.4%
Hospitality Industry Average Movement	7.7%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 8495 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 8495's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2016	368	Paul Kwok	https://www.1957.com.hk

1957 & Co. (Hospitality) Limited, an investment holding company, operates full service restaurants in Hong Kong and the People’s Republic of China. The company also provides restaurant and catering management, as well as consultancy services. As of December 31, 2021, it operated twelve restaurants under five self-owned brands, including Ta-ke, An Nam, Modern Shanghai, 10 Shanghai, and Hokkaidon; and three franchised or sublicensed brands, such as Mango Tree, Gonpachi, and Paper Moon.

1957 (Hospitality) Fundamentals Summary

How do 1957 (Hospitality)'s earnings and revenue compare to its market cap?
8495 fundamental statistics
Market Cap	HK$195.84m
Earnings (TTM)	-HK$1.51m
Revenue (TTM)	HK$357.38m

0.5x

P/S Ratio

-127.2x

P/E Ratio

Is 8495 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8495 income statement (TTM)
Revenue	HK$357.38m
Cost of Revenue	HK$252.37m
Gross Profit	HK$105.01m
Other Expenses	HK$106.52m
Earnings	-HK$1.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0039
Gross Margin	29.38%
Net Profit Margin	-0.42%
Debt/Equity Ratio	110.8%

How did 8495 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 8495 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8495?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 8495. This is calculated by dividing 8495's market cap by their current preferred multiple.
What is 8495's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$195.84m

8495 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	8.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 8495's PS Ratio compare to its peers?

8495 PS Ratio vs Peers

The above table shows the PS ratio for 8495 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.1x

Forward PS

Price-To-Sales vs Peers: 8495 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.1x).

Price to Earnings Ratio vs Industry

How does 8495's PE Ratio compare vs other companies in the Hong Kong Hospitality Industry?

Price-To-Sales vs Industry: 8495 is good value based on its Price-To-Sales Ratio (0.5x) compared to the Hong Kong Hospitality industry average (1.7x)

Price to Sales Ratio vs Fair Ratio

What is 8495's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8495 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 8495's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 8495 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8495 (HK$0.5) is trading below our estimate of fair value (HK$6.71)

Significantly Below Fair Value: 8495 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8495's PEG Ratio to determine if it is good value.

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Future Growth

How is 1957 (Hospitality) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

61.7%

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 1957 (Hospitality) 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.

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Examine whether 1957 (Hospitality) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
1957 (Hospitality) competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has 1957 (Hospitality) performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8495 is currently unprofitable.

Growing Profit Margin: 8495 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 8495 is unprofitable, but has reduced losses over the past 5 years at a rate of 33.6% per year.

Accelerating Growth: Unable to compare 8495's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8495 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (18.5%).

Return on Equity

High ROE: 8495 has a negative Return on Equity (2.59%), as it is currently unprofitable.

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Financial Health

How is 1957 (Hospitality)'s financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 8495's short term assets (HK$118.2M) exceed its short term liabilities (HK$114.3M).

Long Term Liabilities: 8495's short term assets (HK$118.2M) exceed its long term liabilities (HK$18.8M).

Debt to Equity History and Analysis

Debt Level: 8495 has more cash than its total debt.

Reducing Debt: 8495's debt to equity ratio has increased from 73.7% to 110.8% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8495 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8495 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33.1% per year.

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Dividend

What is 1957 (Hospitality) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8495's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8495's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8495's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8495's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 8495 has not reported any payouts.

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Management

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

6.2yrs

Average management tenure

CEO

Paul Kwok (58 yo)

5.33yrs

Tenure

HK$3,042,000

Compensation

Mr. Kwok Chi Po, also known as Paul serves as the Chief Executive Officer of 1957 & Co. (Hospitality) Limited and has been its Compliance Officer since February 16, 2017. Mr. Kwok has been Executive Direct...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD387.55K) is above average for companies of similar size in the Hong Kong market ($USD232.99K).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: 8495's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Experienced Board: 8495's board of directors are considered experienced (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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31