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EABL

East African BreweriesNASE:EABL Stock Report

Market Cap

KSh129.8b

7D

0%

1Y

1.7%

Updated

18 Oct, 2021

Data

Company Financials +
EABL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends0/6

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

Summary of all time highs, changes and price drops for East African Breweries
Historical stock prices
Current Share PriceKSh164.75
52 Week HighKSh148.00
52 Week LowKSh194.00
Beta0.84
1 Month Change-6.39%
3 Month Change-12.25%
1 Year Change1.70%
3 Year Change-7.96%
5 Year Change-39.43%
Change since IPO1,594.57%

Recent News & Updates

Shareholder Returns

EABLKE BeverageKE Market
7D0%0.1%1.7%
1Y1.7%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

Is EABL's price volatile compared to industry and market?
EABL volatility
EABL Beta0.84
Industry Beta0.68
Market Beta1

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

FoundedEmployeesCEOWebsite
19221,500Jane Karukuhttps://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

How do East African Breweries's earnings and revenue compare to its market cap?
EABL fundamental statistics
Market CapKSh129.81b
Earnings (TTM)KSh4.35b
Revenue (TTM)KSh85.96b

29.8x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EABL income statement (TTM)
RevenueKSh85.96b
Cost of RevenueKSh48.55b
Gross ProfitKSh37.41b
ExpensesKSh33.06b
EarningsKSh4.35b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.53
Gross Margin43.52%
Net Profit Margin5.07%
Debt/Equity Ratio312.1%

How did EABL perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:15
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.