WSE:EAT

Stock Analysis Report

Executive Summary

AmRest Holdings SE, through its subsidiaries, operates and manages quick service and casual dining restaurants in Central and Eastern Europe, Western Europe, Russia, and China.


Snowflake Analysis

Reasonable growth potential with questionable track record.

Share Price & News

How has AmRest Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EAT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

EAT

-2.4%

PL Hospitality

-4.7%

PL Market


1 Year Return

12.0%

EAT

17.7%

PL Hospitality

-12.7%

PL Market

Return vs Industry: EAT underperformed the Polish Hospitality industry which returned 17.7% over the past year.

Return vs Market: EAT exceeded the Polish Market which returned -12.7% over the past year.


Shareholder returns

EATIndustryMarket
7 Day-7.1%-2.4%-4.7%
30 Day-5.3%-1.2%-5.3%
90 Day-2.2%1.4%-4.3%
1 Year12.0%12.0%17.7%17.7%-10.1%-12.7%
3 Year30.3%30.3%38.9%36.8%-10.1%-16.4%
5 Year284.6%284.6%225.1%210.7%-3.0%-15.4%

Price Volatility Vs. Market

How volatile is AmRest Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AmRest Holdings undervalued compared to its fair value and its price relative to the market?

59.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EAT (PLN46.45) is trading above our estimate of fair value (PLN31.06)

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


Price To Earnings Ratio

PE vs Industry: EAT is poor value based on its PE Ratio (62.5x) compared to the Hospitality industry average (18.5x).

PE vs Market: EAT is poor value based on its PE Ratio (62.5x) compared to the Polish market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: EAT is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: EAT is overvalued based on its PB Ratio (5.3x) compared to the PL Hospitality industry average (1.7x).


Next Steps

Future Growth

How is AmRest Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (30.7% per year) is above the savings rate (2%).

Earnings vs Market: EAT's earnings (30.7% per year) are forecast to grow faster than the Polish market (11.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EAT's revenue (10.2% per year) is forecast to grow faster than the Polish market (6.2% per year).

High Growth Revenue: EAT's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EAT's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has AmRest Holdings performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAT has high quality earnings.

Growing Profit Margin: EAT's current net profit margins (2%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: EAT's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: EAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EAT had negative earnings growth (-11%) over the past year, making it difficult to compare to the Hospitality industry average (-14.8%).


Return on Equity

High ROE: EAT's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is AmRest Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EAT's short term assets (€238.5M) do not cover its short term liabilities (€440.6M).

Long Term Liabilities: EAT's short term assets (€238.5M) do not cover its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: EAT's debt to equity ratio (156.3%) is considered high.

Reducing Debt: EAT's debt to equity ratio has increased from 104.5% to 156.3% over the past 5 years.

Debt Coverage: EAT's debt is well covered by operating cash flow (39.3%).

Interest Coverage: EAT's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: EAT has a high level of physical assets or inventory.

Debt Coverage by Assets: EAT's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is AmRest Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mark Chandler (64yo)

0.9yrs

Tenure

€1,672,461

Compensation

Mr. Mark R. Chandler has been Member of Management Board at AmRest Holdings SE since July 31, 2013 and also serves as its CEO. He was CFO at AmRest Holdings SE since November 2008. Mr. Chandler is responsi ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD0.00) is below average for companies of similar size in the Polish market ($USD342.24K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Chandler
CEO & Member of Management Board0.9yrs€1.67mno data
Henry McGovern
0yrs€2.45m0.14% 13.3m
Oksana Staniszewska
Chief People Officer & Member of Management Board4.2yrs€929.69kno data
Olgierd Danielewicz
COO & Member of Management Board0yrs€890.00kno data
Eduardo Zamarripa
Chief Financial Officer0yrsno datano data
Robert Zuk
Global Chief Information Officer2.8yrsno datano data
Michal Serwatka
IR and M&A Director0yrsno datano data
Peter Kaineder
Chief Strategy Officer2.1yrsno datano data
Adam Sawicki
Chief Digital Officer2.3yrsno datano data
Jerzy Tymofiejew
Chief Development Officer1.8yrsno datano data

2.2yrs

Average Tenure

52yo

Average Age

Experienced Management: EAT's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos Fernández González
Director1.9yrs€320.50kno data
José Parés Gutiérrez
Chairman of the Board of Directors0yrs€315.85kno data
Luis Álvarez Pérez
Vice-President of the Board0yrs€315.85kno data
Romana Sadurska
Independent Director0yrsno datano data
Pablo Castilla Reparaz
Independent Director1.9yrs€434.37kno data
Mustafa Ogretici
Independent Director1.9yrs€434.37kno data
Emilio Botella
Independent Director0yrsno datano data

1.9yrs

Average Tenure

Experienced Board: EAT's board of directors are not considered experienced ( 1.9 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 been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

AmRest Holdings SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AmRest Holdings SE
  • Ticker: EAT
  • Exchange: WSE
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: zł9.600b
  • Shares outstanding: 218.67m
  • Website: https://www.amrest.eu

Number of Employees


Location

  • AmRest Holdings SE
  • Calle Enrique Granados 6
  • B building, 2nd floor, office 6
  • Madrid
  • Madrid
  • 50-365
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EATWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNApr 2005
0OGQLSE (London Stock Exchange)YesOrdinary SharesGBPLNApr 2005
ARHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
1QTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005
EATBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURApr 2005
EAT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNApr 2005

Biography

AmRest Holdings SE, through its subsidiaries, operates and manages quick service and casual dining restaurants in Central and Eastern Europe, Western Europe, Russia, and China. It operates Kentucky Fried Chicken, Pizza Hut, Burger King, and Starbucks restaurants on the basis of franchise and joint venture partnerships. The company also operates its own restaurant under the La Tagliatella brand name, as well as Blue Frog and KABB brand names. In addition, it provides on-site catering services; take away services; drive-in services at special sales points; and deliveries for orders placed online or by telephone. As of November 15, 2018, it operated 2,015 restaurants. The company was founded in 1993 and is based in Madrid, Spain. AmRest Holdings SE (WSE : EAT) operates as a subsidiary of Fcapital Dutch B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:14
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.