| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
EABL Overview
East African Breweries Limited engages in the brewery, production, marketing, distribution, and sale of beer, spirits, adult non-alcoholic drinks, and malt and barley products in Kenya, Uganda, and Tanzania.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | KSh164.75 |
| 52 Week High | KSh148.00 |
| 52 Week Low | KSh194.00 |
| Beta | 0.84 |
| 1 Month Change | -6.39% |
| 3 Month Change | -12.25% |
| 1 Year Change | 1.70% |
| 3 Year Change | -7.96% |
| 5 Year Change | -39.43% |
| Change since IPO | 1,594.57% |
Recent News & Updates
Shareholder Returns
| EABL | KE Beverage | KE Market | |
|---|---|---|---|
| 7D | 0% | 0.1% | 1.7% |
| 1Y | 1.7% | 25.6% | 30.0% |
Return vs Industry: EABL underperformed the KE Beverage industry which returned 25.6% over the past year.
Return vs Market: EABL underperformed the KE Market which returned 30% over the past year.
Price Volatility
| EABL volatility | |
|---|---|
| EABL Beta | 0.84 |
| Industry Beta | 0.68 |
| Market Beta | 1 |
Stable Share Price: EABL is less volatile than 75% of KE stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: EABL's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1922 | 1,500 | Jane Karuku | https://www.eabl.com |
East African Breweries Limited engages in the brewery, production, marketing, distribution, and sale of beer, spirits, adult non-alcoholic drinks, and malt and barley products in Kenya, Uganda, and Tanzania. Its brands primarily include Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Uganda Waragi, Smirnoff, and Johnnie Walker. The company also exports its products to South Sudan, Rwanda, Burundi, and the Great Lakes region.
East African Breweries Fundamentals Summary
| EABL fundamental statistics | |
|---|---|
| Market Cap | KSh129.81b |
| Earnings (TTM) | KSh4.35b |
| Revenue (TTM) | KSh85.96b |
29.8x
P/E Ratio1.5x
P/S RatioIs EABL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EABL income statement (TTM) | |
|---|---|
| Revenue | KSh85.96b |
| Cost of Revenue | KSh48.55b |
| Gross Profit | KSh37.41b |
| Expenses | KSh33.06b |
| Earnings | KSh4.35b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.53 |
| Gross Margin | 43.52% |
| Net Profit Margin | 5.07% |
| Debt/Equity Ratio | 312.1% |
How did EABL perform over the long term?
See historical performance and comparisonValuation
Is East African Breweries undervalued compared to its fair value and its price relative to the market?
29.81x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EABL (KES164.75) is trading above our estimate of fair value (KES74.84)
Significantly Below Fair Value: EABL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EABL is poor value based on its PE Ratio (29.8x) compared to the African Beverage industry average (27.6x).
PE vs Market: EABL is poor value based on its PE Ratio (29.8x) compared to the KE market (6.5x).
Price to Earnings Growth Ratio
PEG Ratio: EABL is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: EABL is overvalued based on its PB Ratio (21x) compared to the XF Beverage industry average (2.4x).
Future Growth
How is East African Breweries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
32.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EABL's forecast earnings growth (32.6% per year) is above the savings rate (12.6%).
Earnings vs Market: EABL's earnings (32.6% per year) are forecast to grow faster than the KE market (13.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EABL's revenue (3.5% per year) is forecast to grow slower than the KE market (9.3% per year).
High Growth Revenue: EABL's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EABL's Return on Equity is forecast to be very high in 3 years time (53.8%).
Past Performance
How has East African Breweries performed over the past 5 years?
-13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EABL has high quality earnings.
Growing Profit Margin: EABL's current net profit margins (5.1%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: EABL's earnings have declined by 13.4% per year over the past 5 years.
Accelerating Growth: EABL's earnings growth over the past year (6.6%) exceeds its 5-year average (-13.4% per year).
Earnings vs Industry: EABL earnings growth over the past year (6.6%) underperformed the Beverage industry 19.7%.
Return on Equity
High ROE: Whilst EABL's Return on Equity (46.87%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is East African Breweries's financial position?
Financial Position Analysis
Short Term Liabilities: EABL's short term assets (KES34.1B) do not cover its short term liabilities (KES39.7B).
Long Term Liabilities: EABL's short term assets (KES34.1B) do not cover its long term liabilities (KES45.6B).
Debt to Equity History and Analysis
Debt Level: EABL's debt to equity ratio (312.1%) is considered high.
Reducing Debt: EABL's debt to equity ratio has increased from 244.6% to 312.1% over the past 5 years.
Debt Coverage: EABL's debt is well covered by operating cash flow (31.5%).
Interest Coverage: EABL's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
Dividend
What is East African Breweries's current dividend yield, its reliability and sustainability?
5.43%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EABL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EABL'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 EABL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EABL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: EABL is not paying a notable dividend for the KE market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EABL's dividend in 3 years as they are not forecast to pay a notable one for the KE market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Jane Karuku (59 yo)
0.75
Tenure
KSh52,311,000
Compensation
Mrs. Jane W. Karuku, MGH, serves as the Managing Director of Kenya Breweries Ltd. She has been Managing Director of Kenya Breweries Limited since 2019. She serves as Managing Director, Group Chief Executiv...
CEO Compensation Analysis
Compensation vs Market: Jane's total compensation ($USD471.48K) is below average for companies of similar size in the KE market ($USD860.13K).
Compensation vs Earnings: Jane's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: EABL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
Experienced Board: EABL's board of directors are not considered experienced ( 2.8 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
East African Breweries Limited's employee growth, exchange listings and data sources
Key Information
- Name: East African Breweries Limited
- Ticker: EABL
- Exchange: NASE
- Founded: 1922
- Industry: Brewers
- Sector: Food, Beverage & Tobacco
- Market Cap: KSh129.811b
- Shares outstanding: 787.93m
- Website: https://www.eabl.com
Number of Employees
Location
- East African Breweries Limited
- Corporate Centre
- Garden City Business Park
- Nairobi
- 100
- Kenya
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/18 15:15 |
| End of Day Share Price | 2021/10/18 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.