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GSH

Good Spirits HospitalityNZSE:GSH Stock Report

Market Cap

NZ$4.2m

7D

2.8%

1Y

-8.8%

Updated

26 Oct, 2021

Data

Company Financials
GSH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

GSH Overview

Good Spirits Hospitality Limited, an investment company, engages in the hospitality business in New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Good Spirits Hospitality
Historical stock prices
Current Share PriceNZ$0.073
52 Week HighNZ$0.067
52 Week LowNZ$0.084
Beta-0.12
1 Month Change8.96%
3 Month Change1.39%
1 Year Change-8.75%
3 Year Change-27.00%
5 Year Change-63.50%
Change since IPO-95.38%

Recent News & Updates

May 17
Does Good Spirits Hospitality (NZSE:GSH) Have A Healthy Balance Sheet?

Does Good Spirits Hospitality (NZSE:GSH) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Feb 01
A Look At Good Spirits Hospitality's (NZSE:GSH) CEO Remuneration

A Look At Good Spirits Hospitality's (NZSE:GSH) CEO Remuneration

This article will reflect on the compensation paid to Geoff Tuttle who has served as CEO of Good Spirits Hospitality...

Shareholder Returns

GSHNZ HospitalityNZ Market
7D2.8%-0.04%0.5%
1Y-8.8%13.9%2.1%

Return vs Industry: GSH underperformed the NZ Hospitality industry which returned 13.9% over the past year.

Return vs Market: GSH underperformed the NZ Market which returned 2.1% over the past year.

Price Volatility

Is GSH's price volatile compared to industry and market?
GSH volatility
GSH Beta-0.12
Industry Beta1.11
Market Beta1

Stable Share Price: GSH is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GSH's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004n/aGeoff Tuttlehttps://www.goodspiritshospitality.co.nz

Good Spirits Hospitality Limited, an investment company, engages in the hospitality business in New Zealand. It operates a chain of 8 bars in Auckland and Hamilton. The company was formerly known as Veritas Investments Limited and changed its name to Good Spirits Hospitality Limited in June 2019.

Good Spirits Hospitality Fundamentals Summary

How do Good Spirits Hospitality's earnings and revenue compare to its market cap?
GSH fundamental statistics
Market CapNZ$4.21m
Earnings (TTM)-NZ$5.84m
Revenue (TTM)NZ$23.48m

0.2x

P/S Ratio

-0.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GSH income statement (TTM)
RevenueNZ$23.48m
Cost of RevenueNZ$13.70m
Gross ProfitNZ$9.78m
ExpensesNZ$15.61m
Earnings-NZ$5.84m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.10
Gross Margin41.64%
Net Profit Margin-24.87%
Debt/Equity Ratio2,107.9%

How did GSH perform over the long term?

See historical performance and comparison

Valuation

Is Good Spirits Hospitality undervalued compared to its fair value and its price relative to the market?

3.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GSH (NZ$0.07) is trading above our estimate of fair value (NZ$0.03)

Significantly Below Fair Value: GSH is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GSH is overvalued based on its PB Ratio (3.3x) compared to the NZ Hospitality industry average (1.9x).


Future Growth

How is Good Spirits Hospitality forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.2%

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 Good Spirits 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.


Past Performance

How has Good Spirits Hospitality performed over the past 5 years?

-76.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSH is currently unprofitable.

Growing Profit Margin: GSH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GSH is unprofitable, and losses have increased over the past 5 years at a rate of 76.5% per year.

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

Earnings vs Industry: GSH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: GSH has a negative Return on Equity (-458.11%), as it is currently unprofitable.


Financial Health

How is Good Spirits Hospitality's financial position?


Financial Position Analysis

Short Term Liabilities: GSH's short term assets (NZ$3.8M) do not cover its short term liabilities (NZ$3.9M).

Long Term Liabilities: GSH's short term assets (NZ$3.8M) do not cover its long term liabilities (NZ$40.9M).


Debt to Equity History and Analysis

Debt Level: GSH's debt to equity ratio (2107.9%) is considered high.

Reducing Debt: GSH's debt to equity ratio has increased from 414.7% to 2107.9% 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 GSH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GSH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 19.2% per year.


Dividend

What is Good Spirits Hospitality current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: GSH is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Geoff Tuttle

3.17yrs

Tenure

NZ$350,000

Compensation

Mr. Geoffrey Eamon Tuttle, also known as Geoff, has been Chief Executive Officer of Good Spirits Hospitality Limited since August 29, 2018 and was its Director since October 5, 2020 until December 14, 2020...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD250.91K) is below average for companies of similar size in the NZ market ($USD375.58K).

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


Leadership Team

Experienced Management: GSH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: GSH's board of directors are not considered experienced ( 2.2 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

Good Spirits Hospitality Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Good Spirits Hospitality Limited
  • Ticker: GSH
  • Exchange: NZSE
  • Founded: 2004
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: NZ$4.215m
  • Shares outstanding: 57.73m
  • Website: https://www.goodspiritshospitality.co.nz

Location

  • Good Spirits Hospitality Limited
  • Building B
  • Ground Floor
  • Auckland
  • 1051
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:23
End of Day Share Price2021/10/26 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.