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6002

Herfy Food Services SASE:6002 Stock Report

Last Price

ر.س38.80

Market Cap

ر.س2.5b

7D

-0.6%

1Y

-38.6%

Updated

29 Sep, 2022

Data

Company Financials +
6002 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends3/6

6002 Stock Overview

Herfy Food Services Company establishes, operates, and franchises restaurants primarily in the Kingdom of Saudi Arabia.

Herfy Food Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Herfy Food Services
Historical stock prices
Current Share Priceر.س38.80
52 Week Highر.س77.90
52 Week Lowر.س37.40
Beta0.53
1 Month Change-11.11%
3 Month Change-8.81%
1 Year Change-38.61%
3 Year Change-24.81%
5 Year Change-22.40%
Change since IPO62.35%

Recent News & Updates

Aug 06
Herfy Food Services Company Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Herfy Food Services Company Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Last week, you might have seen that Herfy Food Services Company ( TADAWUL:6002 ) released its second-quarter result to...

Shareholder Returns

6002SA HospitalitySA Market
7D-0.6%0.6%-2.7%
1Y-38.6%-26.6%2.4%

Return vs Industry: 6002 underperformed the SA Hospitality industry which returned -26.6% over the past year.

Return vs Market: 6002 underperformed the SA Market which returned 2.4% over the past year.

Price Volatility

Is 6002's price volatile compared to industry and market?
6002 volatility
6002 Average Weekly Movement3.6%
Hospitality Industry Average Movement5.2%
Market Average Movement4.5%
10% most volatile stocks in SA Market7.3%
10% least volatile stocks in SA Market2.9%

Stable Share Price: 6002 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6002's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19815,586Sam Baderhttps://www.herfy.com

Herfy Food Services Company establishes, operates, and franchises restaurants primarily in the Kingdom of Saudi Arabia. The company’s restaurants offer cooked meals to companies and others. As of December 31, 2021, it owned 40 restaurants and leased 346 restaurants under the HERFY name in the Kingdom of Saudi Arabia.

Herfy Food Services Fundamentals Summary

How do Herfy Food Services's earnings and revenue compare to its market cap?
6002 fundamental statistics
Market Capر.س2.52b
Earnings (TTM)ر.س157.29m
Revenue (TTM)ر.س1.30b

16.0x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6002 income statement (TTM)
Revenueر.س1.30b
Cost of Revenueر.س935.66m
Gross Profitر.س365.52m
Other Expensesر.س208.23m
Earningsر.س157.29m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.43
Gross Margin28.09%
Net Profit Margin12.09%
Debt/Equity Ratio2.1%

How did 6002 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6002 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6002?

Other financial metrics that can be useful for relative valuation.

6002 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA11.2x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does 6002's PE Ratio compare to its peers?

6002 PE Ratio vs Peers
The above table shows the PE ratio for 6002 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.2x
6014 Alamar Foods
27.5xn/aر.س3.4b
9520 Shatirah House Restaurant
29.5xn/aر.س344.1m
1830 Leejam Sports
16.6x15.0%ر.س4.1b
4291 National Company for Learning and Education
43.1xn/aر.س2.7b
6002 Herfy Food Services
16x6.4%ر.س2.5b

Price-To-Earnings vs Peers: 6002 is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (29.2x).


Price to Earnings Ratio vs Industry

How does 6002's PE Ratio compare vs other companies in the Asian Hospitality Industry?

Price-To-Earnings vs Industry: 6002 is good value based on its Price-To-Earnings Ratio (16x) compared to the Asian Hospitality industry average (27x)


Price to Earnings Ratio vs Fair Ratio

What is 6002's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6002 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6002's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6002 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6002 (SAR38.8) is trading above our estimate of fair value (SAR28.71)

Significantly Below Fair Value: 6002 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Herfy Food Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6002's forecast earnings growth (6.4% per year) is below the savings rate (8.9%).

Earnings vs Market: 6002's earnings (6.4% per year) are forecast to grow faster than the SA market (-2.8% per year).

High Growth Earnings: 6002's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6002's revenue (4.6% per year) is forecast to grow faster than the SA market (-5.3% per year).

High Growth Revenue: 6002's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6002's Return on Equity is forecast to be low in 3 years time (17.7%).


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Past Performance

How has Herfy Food Services performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6002 has high quality earnings.

Growing Profit Margin: 6002's current net profit margins (12.1%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: 6002's earnings have declined by 13.2% per year over the past 5 years.

Accelerating Growth: 6002's earnings growth over the past year (37.9%) exceeds its 5-year average (-13.2% per year).

Earnings vs Industry: 6002 earnings growth over the past year (37.9%) underperformed the Hospitality industry 37.9%.


Return on Equity

High ROE: 6002's Return on Equity (14.3%) is considered low.


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Financial Health

How is Herfy Food Services's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6002's short term assets (SAR430.5M) exceed its short term liabilities (SAR313.8M).

Long Term Liabilities: 6002's short term assets (SAR430.5M) do not cover its long term liabilities (SAR538.2M).


Debt to Equity History and Analysis

Debt Level: 6002 has more cash than its total debt.

Reducing Debt: 6002's debt to equity ratio has reduced from 41.2% to 2.1% over the past 5 years.

Debt Coverage: 6002's debt is well covered by operating cash flow (1052.6%).

Interest Coverage: 6002's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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Dividend

What is Herfy Food Services's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.58%

Current Dividend Yield

Dividend Yield vs Market

Herfy Food Services Dividend Yield vs Market
How does Herfy Food Services dividend yield compare to the market?
SegmentDividend Yield
Company (Herfy Food Services)2.6%
Market Bottom 25% (SA)2.1%
Market Top 25% (SA)4.7%
Industry Average (Hospitality)1.0%
Analyst forecast in 3 Years (Herfy Food Services)5.0%

Notable Dividend: 6002's dividend (2.58%) is higher than the bottom 25% of dividend payers in the SA market (2.05%).

High Dividend: 6002's dividend (2.58%) is low compared to the top 25% of dividend payers in the SA market (4.67%).


Stability and Growth of Payments

Stable Dividend: 6002 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6002 has only been paying a dividend for 8 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.1%), 6002's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.8%), 6002's dividend payments are well covered by cash flows.


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Management

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

1.3yrs

Average board tenure


CEO

Sam Bader

1.25yrs

Tenure

Mr. Sam Mohamed Bader has been Acting Chief Executive Officer at Herfy Food Services Company since June 21, 2021. He has a great experience in the food industry since he started his working career with BK...


Board Members

Experienced Board: 6002's board of directors are not considered experienced ( 1.3 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

What is the ownership structure of 6002?
Owner TypeNumber of SharesOwnership Percentage
Institutions1,748,4102.7%
Individual Insiders12,531,71419.4%
General Public18,706,67628.9%
Public Companies31,693,20049.0%

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


Top Shareholders

Top 17 shareholders own 71.08% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
49%
Savola Group Company
31,693,200SAR1.2b0%no data
19.17%
Ahmed Bin Hamad Al-Said
12,395,922SAR481.0m0.03%no data
1.19%
The Vanguard Group, Inc.
769,402SAR29.9m4.41%no data
0.82%
BlackRock, Inc.
533,605SAR20.7m-3.07%no data
0.47%
Dimensional Fund Advisors LP
306,412SAR11.9m4.98%no data
0.2%
Abdullah Bin Abdul Al–Saif
130,000SAR5.0m0%no data
0.14%
State Street Global Advisors, Inc.
87,728SAR3.4m3.25%no data
0.042%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
26,940SAR1.0m16.64%no data
0.027%
Eaton Vance Management
17,232SAR668.6k0%no data
0.0083%
Wilshire Advisors LLC
5,386SAR209.0k0%0.01%
0.003%
Issam Majed bin Al-Muhaidib
1,960SAR76.0k0%no data
0.0026%
Northern Trust Global Investments
1,705SAR66.2k0%no data
0.0022%
Moataz Al-Azzawi
1,400SAR54.3k0%no data
0.0021%
Khalid Ahmad Alsaid
1,367SAR53.0k0%no data
0.0015%
Abdul Aziz Mohammed Al Raqib
1,000SAR38.8k0%no data
0.0001%
Anees Bin Bin Mohammed Moumina
64SAR2.5k0%no data
0%
Issam Majed Al-Muhaideb
1SAR38.80%no data

Company Information

Herfy Food Services Company's employee growth, exchange listings and data sources


Key Information

  • Name: Herfy Food Services Company
  • Ticker: 6002
  • Exchange: SASE
  • Founded: 1981
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: ر.س2.519b
  • Shares outstanding: 64.68m
  • Website: https://www.herfy.com

Number of Employees


Location

  • Herfy Food Services Company
  • A1 Moroug District
  • PO Box 86958
  • Riyadh
  • 11632
  • Saudi Arabia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6002SASE (Saudi Arabian Stock Exchange)YesShare CapitalSASARFeb 2010

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.