TPS Eastern Africa (NASE:TPSE) - Share price, News & Analysis

TPSE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	0/6
Dividends	0/6

TPSE Overview

TPS Eastern Africa Plc owns and operates hotel and lodge facilities for the business and tourist markets.

Risk Analysis

Earnings have declined by 38.7% per year over past 5 years

Volatile share price over the past 3 months

Does not have a meaningful market cap (KES3B)

Price History & Performance

Summary of all time highs, changes and price drops for TPS Eastern Africa
Historical stock prices
Current Share Price	KSh16.60
52 Week High	KSh13.20
52 Week Low	KSh18.00
Beta	1.04
1 Month Change	8.14%
3 Month Change	17.73%
1 Year Change	14.88%
3 Year Change	-27.03%
5 Year Change	-7.78%
Change since IPO	-68.16%

Shareholder Returns

	TPSE	KE Hospitality	KE Market
7D	3.8%	1.5%	-1.0%
1Y	14.9%	51.3%	28.4%

Return vs Industry: TPSE underperformed the KE Hospitality industry which returned 51.2% over the past year.

Return vs Market: TPSE underperformed the KE Market which returned 28.5% over the past year.

Price Volatility

Is TPSE's price volatile compared to industry and market?
TPSE volatility
TPSE Beta	1.04
Industry Beta	1.11
Market Beta	1

Stable Share Price: TPSE is more volatile than 75% of KE stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TPSE's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of KE stocks.

About the Company

Founded	Employees	CEO	Website
n/a	2,692	Mahmud Mohamed	https://www.serenahotels.com

TPS Eastern Africa Plc owns and operates hotel and lodge facilities for the business and tourist markets. It operates a collection of 35 hotels, resorts, safari lodges, camps, and forts located in Kenya, Tanzania, Zanzibar, Rwanda, Uganda, Mozambique, Pakistan, Afghanistan, and Tajikistan. The company is based in Nairobi, Kenya.

TPS Eastern Africa Fundamentals Summary

How do TPS Eastern Africa's earnings and revenue compare to its market cap?
TPSE fundamental statistics
Market Cap	KSh3.02b
Earnings (TTM)	-KSh1.15b
Revenue (TTM)	KSh2.26b

1.3x

P/S Ratio

-2.6x

P/E Ratio

Is TPSE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPSE income statement (TTM)
Revenue	KSh2.26b
Cost of Revenue	KSh1.81b
Gross Profit	KSh444.21m
Expenses	KSh1.59b
Earnings	-KSh1.15b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)	-6.32
Gross Margin	19.68%
Net Profit Margin	-50.98%
Debt/Equity Ratio	69.4%

How did TPSE perform over the long term?

See historical performance and comparison

Valuation

Is TPS Eastern Africa undervalued compared to its fair value and its price relative to the market?

0.4x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TPSE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TPSE's fair value to establish if it is undervalued.

Price To Earnings Ratio

PE vs Industry: TPSE is unprofitable, so we can't compare its PE Ratio to the African Hospitality industry average.

PE vs Market: TPSE is unprofitable, so we can't compare its PE Ratio to the KE market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: TPSE is good value based on its PB Ratio (0.4x) compared to the XF Hospitality industry average (1x).

Future Growth

How is TPS Eastern Africa forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

45.5%

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 TPS Eastern Africa 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.

Past Performance

How has TPS Eastern Africa performed over the past 5 years?

-38.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TPSE is currently unprofitable.

Growing Profit Margin: TPSE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TPSE is unprofitable, and losses have increased over the past 5 years at a rate of 38.7% per year.

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

Earnings vs Industry: TPSE is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (23.7%).

Return on Equity

High ROE: TPSE has a negative Return on Equity (-14.65%), as it is currently unprofitable.

Financial Health

How is TPS Eastern Africa's financial position?

Financial Position Analysis

Short Term Liabilities: TPSE's short term assets (KES1.5B) do not cover its short term liabilities (KES2.2B).

Long Term Liabilities: TPSE's short term assets (KES1.5B) do not cover its long term liabilities (KES6.8B).

Debt to Equity History and Analysis

Debt Level: TPSE's debt to equity ratio (69.4%) is considered high.

Reducing Debt: TPSE's debt to equity ratio has increased from 26.7% to 69.4% 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: Insufficient data to determine if TPSE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TPSE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is TPS Eastern Africa current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

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

High Dividend: Unable to evaluate TPSE'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 TPSE's dividends per share have been stable in the past.

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

Current Payout to Shareholders

Dividend Coverage: TPSE is not paying a notable dividend for the KE market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPSE's dividend in 3 years as they are not forecast to pay a notable one for the KE market.

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

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

8.5yrs

Average board tenure

CEO

Mahmud Mohamed (68 yo)

no data

Tenure

KSh15,788,000

Compensation

Mr. Mahmud Jan Mohamed serves as the Managing Director of TPS Eastern Africa Plc. Mr. Mohamed worked for the TPS Group of Companies in different capacities rising. Mr. Mohamed was Founder Chairman of the K...

CEO Compensation Analysis

Compensation vs Market: Mahmud's total compensation ($USD142.00K) is below average for companies of similar size in the KE market ($USD235.11K).

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

Board Members

Experienced Board: TPSE's board of directors are considered experienced (8.5 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/10/25 16:50
End of Day Share Price	2021/10/25 00:00
Earnings	2020/12/31
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data